BSE First Half Report 2015

2015

First Half Report

First Half Report 2015 Table 1, illustrates the total trading activity for the first half of 2015 compared to the activity which occurred for the corresponding period in 2014. Total trading volume increased by 8%, while total trading value increased by 13%. The Regular Market has shown improvement at the 2015 half-year close, however, Put Through Market performance continues to show declines in both volume and value traded when compared to performance for the corresponding period in 2014. There was no trading on the Junior or Block Trade Markets for the first half of 2015.

Two securities were delisted from the board of the Exchange during the first half of 2015; there was one new listing1.

There were no extra-ordinary transactions occurring on the board of the BSE for the first half of 2015.

Second quarter 2015 market performance showed improvement in the volumes traded, however, as share prices continue to be constricted, the values traded have not met the same level of performance as the volumes traded but have exceeded the 2014 figures. As illustrated in Table 2, total trading volume was up 57% with a corresponding increase in total trading value of 6%. The Regular Market was the only market to record a decrease in terms of value traded of 7% but a 52% increase in terms of volume traded while the Put Through Market activity recorded large increases - 609% in terms of volumes traded and 1386% in terms of value. There was no activity on the Junior or Block Trade Markets during the second quarter.

1

See Regular Market Section

Table 1 – Total Trading Activity - 1st Half 2015 Market

June Volume

June Value

2015

2014

3,843,432

2,891,508

$11,467,172

$9,480,243

33%

21%

279,584

910,376

$1,781,669

$2,247,374

-69%

-21%

Junior

-

-

-

-

NA

NA

Block Trade

-

-

-

-

NA

NA

Regular Put - Through

Total

2015

% Change 2014

Volume

4,123,016 3,801,884 $13,248,841 $11,727,617

Value

8%

13%

Table 2 – Trading Activity - 2nd Quarter Market

2nd Quarter Volume

2nd Quarter Value

% Change

2015

2014

2015

2,568,509

1,689,665

$4,813,502

$5,192,242

52%

-7%

108,941

15,375

$740,647

$49,838

609%

1386%

Junior

-

-

-

-

NA

NA

Block Trade

-

-

-

-

NA

NA

Regular Put - Through

Total

2,677,450 1,705,040

2014

$5,554,149

Volume

$5,242,080

57%

Value

6%

Regular Market

0+126+1615+ 10+158+1110+9

The trading activity on the Regular Market for the first half of 2015 recorded an increase of 33% in trading volume and a corresponding increase in value of 21%. The total volume of shares traded at the half year was 3,843,432 as compared to 2,891,508 shares traded for the corresponding period in 2014 as illustrated in Table 3. Similarly, the total value traded increased from $9,480,243 in the first half of 2014 to $11,467,172 for the corresponding period in 2015.

Figure 1 - BSE Regular Market Trade Frequency Comparison 2014/2015

0

97

94

101

114

145

148

103

81

50

152

100

64

150

157

200

119

2015 First Quarter Report | 4

Figure 1 below illustrates a monthly comparison of the volume of trades for 2015 and 2014.

The number of trades recorded during the first half rose from 598 in 2014 to 777 in 2015; an increase of 30%. The Average Share Price decreased by 2% from $5.47 to $5.36, however, only three securities declined as at June 30th, 2015 as compared to six securities declining at the close of the half of 2014.

Jan Feb Mar Apr May Jun

â– 2015 â– 2014

On March 18th, 2015, Royal Fidelity TIGRS A Fund was delisted from the board of the BSE2. On April 14th, 2015, Jamaica Money Market Brokers Limited was delisted from the board of the BSE3. On the same day, JMMB Group Limited was listed on the board of the BSE. Effective April 13th, 2015, 1,630,552,532 Common Shares in JMMB Group Limited were registered (with the Financial Services Commission - FSC) as a result of the Scheme of Arrangement with Jamaica

2 Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Royal Fidelity TIGRS A Fund were delisted from the Board of the BSE on March 18th, 2015.

3 Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Jamaica Money Market Brokers Limited were delisted from the Board of the BSE on April 14th, 2015.

Money Market Brokers Limited4.

Table 3 – Regular Market Year on Year Comparison 30-Jun-15

30-Jun-14

Total Share Volume

3,843,432

2,891,508

Total Share Value

11,467,172

9,480,243

21%

31,504

23,701

33%

$93,993

$77,707

21%

Number of Trades

777

598

30%

Number of Trade Days

122

122

0%

$ 5.36

$5.47

-2%

7/3

7/6

N/A

Local Index

2,193.49

2,161.03

2%

Cross – Listed Index

1,738.13

1,676.68

4%

625.59

611.75

2%

Local Market Capitalization

5,498,518,789

5,423,749,949

1%

Cross-Listed Market Capitalization

2,914,676,250

2,798,239,355

4%

Composite Market Capitalization

8,413,195,039

8,221,989,304

2%

25

26

-4%

Average Daily Share Value

Average Share Price Advance/Decline Ratio

Composite Market Index

Number Of Listed Securities

33%

4 The Barbados Stock Exchange (BSE) is pleased to announce that JMMB Group Limited has been listed on the Board of the BSE. “... The Scheme of Arrangement will see the existing ordinary shares of JMMB being exchanged for ordinary shares in JMMB Group Limited on a one on one basis, and the listing of JMMB Group Limited’s ordinary shares on these stock exchanges. On implementation of the Scheme, JMMB Group Limited will therefore become the new holding company for the JMMB group of companies, and JMMB will be a wholly owned subsidiary of JMMB Group Limited.”

2015 First Quarter Report | 5

Average Daily Share Volume

% Change

Table 4 and Table 5 show the top five companies traded in the Regular Market for the first half of 2015 based on volume and value respectively. Banks Holdings Limited was the top traded company for the first half of 2015 in terms of volume accounting for 23.81% of the total volume traded. Fortress Caribbean Property Fund - Value Fund and Sagicor Financial Corporation followed, accounting for 18.25% and 18.17% of the volume traded respectively.

Although only accounting for 5.96% of the total volume traded, Massy Holdings Limited was the top performer in terms of total value traded accounting for 39.82% of the value of shares traded at the close of the first half of 2015.

Table 4 – Top five traded companies by volume -1st half

2015 First Quarter Report | 6

Volume Company

Value

2015

2014

2015

2014

Banks Holdings Limited

915,239

146,757

$2,357,067

$447,601

Fortress C’bean Property Fund - Val Fund

701,610

761,642

$368,348

$408,593

Sagicor Financial Corporation

698,405

471,992

$1,226,898

$995,866

Fortress C’bean Property Fund - Dev Fund

538,525

278,787

$125,461

$51,420

FirstCaribbean International Bank

340,978

85,688

$647,536

$188,320

Table 5 – Top Five Traded Companies by Value –1st Half Volume Company

Value

2015

2014

2015

2014

Massy Holdings Limited

$4,566,747

$800,462

228,884

40,876

Banks Holdings Limited

$2,357,067

$447,601

915,239

146,757

Sagicor Financial Corporation

$1,226,898

$995,866

698,405

471,992

Emera Caribbean Incorporated

$672,181

$1,571,769

26,158

61,161

FirstCaribbean International Bank

$647,536

$188,320

340,978

85,688

As Table 6 and Table 7 illustrate, Banks Holdings Limited was the top security traded for the second quarter in terms of both volume and value, trading 738,008 shares or 28.73% of the volume traded and $1,852,159.48 or 38.48% of the value traded. Fortress Caribbean Property Fund - Value Fund was second in terms of volume traded while Sagicor Financial Corporation was second in terms of value traded for the second quarter of 2015.

Table 6 – Top Five Traded Companies by Volume –2nd Quarter

Company

Value

2015

2014

2015

2014

Banks Holdings Limited

738,008

37,470

$1,852,159

$113,909

Fortress C'bean Property Fund - Val Fund

541,052

578,916

$283,235

$321,160

Sagicor Financial Corporation

434,164

198,396

$760,637

$380,346

Fortress C'bean Property Fund - Dev Fund

376,776

78,916

$91,561

$15,768

FirstCaribbean International Bank

245,023

28,659

$465,532

$54,002

Table 7 – Top Five Traded Companies by Value –2nd Quarter Volume Company

Value

2015

2014

2015

2014

$1,852,159

$113,909

738,008

37,470

Sagicor Financial Corporation

$760,637

$380,346

434,164

198,396

Massy Holdings Limited

$526,740

$564,335

26,333

28,646

FirstCaribbean International Bank

$465,532

$54,002

245,023

28,659

Fortress C'bean Property Fund - Val Fund

$283,235

$321,160

541,052

578,916

Banks Holdings Limited

2015 First Quarter Report | 7

Volume

Put Through Market Table 8 below illustrates Put Through market activity for the first half of 2015. This market recorded decreases in terms of both volume traded (69%) and value (21%) for the period under examination over the corresponding period in 2014. A total of twenty-two (22) trades were conducted across six (6) securities.

No. of Trades

Volume

Value

Banks Holdings Limited

3

1,936

$5,659

FirstCaribbean International Bank

1

14,166

$26,915

Goddard Enterprises Limited

5

239,069

$1,615,042

Massy Holdings Limited

1

2,780

$55,600

Once Caribbean Media Limited

1

7,913

$54,204

11

13,720

$24,249

Security

Sagicor Financial Corporation

Total

22

279,584

$1,781,669

Block Trade & Junior Market Neither the Block Trade Market nor the Junior Market recorded activity during the first half of 2015.

Bond Market For the first half of 2015, twenty-four (24) Barbados Government Debentures and nine (9) Barbados Government Treasury Notes traded on the board of the Exchange as compared to twenty-two (22) Barbados Government Debentures and thirteen (13) Barbados Government Treasury Notes trading for the corresponding period in 2014. A total of 108 trades occurred on the Bond Market, as compared to 131 trades in 2014, resulting in a face value of $11,682,000 traded for the first half of 2015 as compared to $4,675,000 traded as at June 30th, 2014. Table 9 summarizes all bonds traded for the first half of 2015.

2015 First Quarter Report | 9

Table 8 - Put Through Market Activity - 1st Half

Table 9 - Summary of Bonds Traded Security

No. of Trades

Volume

2015 First Quarter Report | 10

Barbados Government Debenture 4.75% 2016

3

3,000

Barbados Government Debenture 5.875% 2018

2

1,002,000

Barbados Government Debenture 6% 2020

1

3,000

Barbados Government Debenture 6.125% 2021

3

12,000

Barbados Government Debenture 6.25% 2019

1

3,000

Barbados Government Debenture 6.25% 2022

2

101,000

Barbados Government Debenture 6.5% 2015

1

51,000

Barbados Government Debenture 6.625% 2018

1

15,000

Barbados Government Debenture 6.625% 2020

2

5,000

Barbados Government Debenture 6.625% 2024

1

14,000

Barbados Government Debenture 6.75% 2021

1

2,000

Barbados Government Debenture 6.875% 2020

2

3,900,000

Barbados Government Debenture 6.875% 2023

6

104,000

Barbados Government Debenture 6.875% 2024

3

7,000

Barbados Government Debenture 7% 2017

4

36,000

Barbados Government Debenture 7% 2023

5

10,000

Barbados Government Debenture 7% 2024

2

415,000

Barbados Government Debenture 7.125% 2026

4

4,000

Barbados Government Debenture 7.25% 2026

1

1,000

Barbados Government Debenture 7.25% 2028

1

20,000

Barbados Government Debenture 7.375% 2027

7

105,000

Barbados Government Debenture 7.375% 2029

4

5,000

Barbados Government Debenture 7.75% 2025

7

46,000

Barbados Government Debenture 7.75% 2032

3

4,000

Barbados Government T/Note 5.875% 2015

1

10,000

Barbados Government T/Note 6% 2016

12

5,291,000

Barbados Government T/Note 6% 2017

2

223,000

Barbados Government T/Note 6% 2018

2

2,000

Barbados Government T/Note 6.25% 2018

2

4,000

Barbados Government T/Note 6.25% 2021

18

250,000

Barbados Government T/Note 6.375% 2019

2

31,000

Barbados Government T/Note 6.5% 2019

1

2,000

Barbados Government T/Note 6.625% 2019

1

1,000

Totals

108

11,682,000

The results for both the Index and Market Capitalization measures were consistent when examined over the three, six and twelve month periods. For the second quarter of 2015, as illustrated in Table 10, only the Local Index recorded a nominal decrease of 0.03% when compared to its March 31st 2015 figure. When the comparison is extended to six months and twelve months (Table 11 and Table 12), all index measures recorded increases. The Local Index recorded the highest increase for the six month of 2.63% while the Cross-Listed Index recorded the largest increase over the twelve month of 3.66%. The upturn in index performance can be attributed to share price appreciation in seven securities most notable of which were One Caribbean Medial Limited, Insurance Corporation of Barbados Limited and FirstCaribbean International Bank. Figure 2 below tracks the Index movement over a twelve (12) month period.

The Market Capitalization comparisons illustrated in Table 13-15, closely mirror the performance of the Index comparisons discussed above over the same three, six and twelve month periods.

Figure 2

2015 First Quarter Report | 11

Index and Market Capitalization Movement

Table 10 - Index Comparison 2nd Quarter 2015 Index

30-Jun

31-Mar

% Change

Local

2,193.49

2,194.13

-0.03%

Cross Listed

1,738.13

1,726.65

0.66%

Composite

625.59

624.23

0.22%

Table 11 - Index Comparison 1st Half

2015 First Quarter Report | 12

2015

2014

Index

30-Jun

31-Mar

% Change

Local

2,193.49

2,137.26

2.63%

Cross Listed

1,738.13

1,706.54

1.85%

Composite

625.59

611.23

2.35%

Table 12- Index Comparison Year-on-Year 2015

2014

Index

30-Jun

31-Mar

% Change

Local

2,193.49

2,161.03

1.50%

Cross Listed

1,738.13

1,676.68

3.66%

Composite

625.59

611.75

2.26%

2015

2014

30-Jun

31-Mar

% Change

Local

5,498,518,789

5,499,741,673.59

-0.02%

Cross Listed

2,914,676,250

2,895,433,099.25

0.66%

Composite

8,413,195,039

8,395,174,773

0.21%

Market Capitalization

Table 14 - Market Capitalization comparison 1st Half 2015

2014

30-Jun

31-Mar

% Change

Local

5,498,518,789

5,367,178,305

2.45%

Cross Listed

2,914,676,250

2,849,599,943

2.28%

Composite

8,413,195,039

8,216,778,248

2.39%

Market Capitalization

Table 15 - Market Capitalization Comparison Year-on-Year 2015

2014

30-Jun

31-Mar

% Change

Local

5,498,518,789

5,423,749,949

1.38%

Cross Listed

2,914,676,250

2,798,239,355

4.16%

Composite

8,413,195,039

8,221,989,304

2.33%

Market Capitalization

2015 First Quarter Report | 13

Table 13 - Market Capitalization comparison 2nd Quarter

Company Activity Comparative Report 2015 First Quarter Report | 14

For the first half of the year ending June 30th 2015, seven (7) securities advanced, three (3) declined, nine (9) remained unchanged and six (6) did not trade; 2 securities were delisted and 1 new listing5. This is compared to seven (7) securities advanced, six (6) declined, six (6) remained unchanged and seven (7) did not trade; there was 1 delisting for the first half of 2014.

Fortress Caribbean Property Fund - Value Fund was the top advancer for the first half climbing 14% from $0.50 on December 31st 2014 to $0.57 at June 30th 2015. One Caribbean Media Limited and Insurance Corporation of Barbados Limited rounded out the top three companies to increase in price during the first six months of 2015 increasing 12.90% and 7.88% respectively. The four other companies to increase in price were Barbados Dairy Industries Limited (6.67%), FirstCaribbean International Bank (5.56%), BICO Limited (3.03%) and Goddard Enterprises Limited (1.42%).

Two companies experienced declines in excess of 10% for the first six months of 2015.

Barbados Farms Limited suffered the largest decline as their share price fell by 20% during the half. Banks Holdings Limited was the other company to experience a double-digit decline of 14.14% over its December 31st, 2014 share price; Sagicor Financial Corporation’s share price declined by 2.22%. Table 16 below illustrates the year to date activity for all listed securities while Table 17 shows the activity for the second quarter.

For the second quarter of 2015, seven (7) securities advanced, three (3) declined, eight (8) remained unchanged and seven (7) did not trade. This is compared to six (6) securities advanced, four (4) declined, seven (7) remained unchanged and nine (9) did not trade in the corresponding period in 2014.

5

See Regular Market Section

Table 16 - 1st Half Trading Activity by Company (Regular and Junior market (J) only) Closing Price

Volume

Value

30Jun-15

ABV Investments Incorporated

1,500

$375

0.32

0.32

0.00%

BICO Limited

21,427

$39,138

1.70

1.65

3.03%

Barbados Dairy Industries Limited

4,883

$7,605

1.60

1.50

6.67%

Barbados Farms Limited

10,522

$4,588

0.40

0.50

-20.00%

Banks Holdings Limited

915,239

$2,357,067

2.49

2.90

-14.14%

Fortress C'bean Property Fund - Dev Fund

538,525

$125,461

0.22

0.22

0.00%

Fortress C'bean Property Fund - Val Fund

701,610

$368,348

0.57

0.50

14.00%

Cave Shepherd And Company Limited

48,584

$145,681

3.00

3.00

0.00%

Cable And Wireless Barbados Limited

36,467

$89,720

3.00

3.00

0.00%

FirstCaribbean International Bank

340,978

$647,536

1.90

1.80

5.56%

Goddard Enterprises Limited

92,635

$596,680

6.43

6.34

1.42%

Insurance Corporation Of Barbados Ltd

130,150

$327,406

2.60

2.41

7.88%

JMMB Group Limited

3,562

$534

0.15

0.15

0.00%

Emera (Caribbean) Incorporated

26,158

$672,181

25.70

25.70

0.00%

0

-

3.30

3.30

0.00%

228,884

$4,566,747

20.00

20.00

0.00%

One Caribbean Media Limited

41,594

$285,802

7.00

6.20

12.90%

Sagicor Financial Corporation 6.5% Pref

2,259

$5,032

2.26

2.26

0.00%

698,405

$1,226,898

1.76

1.80

-2.22%

Trinidad Cement Limited

0

-

0.80

0.80

0.00%

West India Biscuit Company Limited.

0

-

10.46

10.46

0.00%

The West Indies Rum Distilleries Limited

50

$375

8.00

8.00

0.00%

Royal Fidelity Tigrs A Fund (Delisted)

0

-

-

10.50

NA

Royal Fidelity Tigrs A1 Fund

0

-

10.00

10.00

0.00%

Royal Fidelity Tigrs A2 Fund

0

-

10.00

10.00

0.00%

Royal Fidelity Tigrs A3 Fund

0

-

10.00

10.00

0.00%

Security

Emera (Caribbean) Incorporated 5.5% Pref Massy Holdings Limited

Sagicor Financial Corporation

3,843,432 $11,467,172

31Dec-14

% Change

2015 First Quarter Report | 15

1st Half 2015

Table 17 - 2nd Quarter Trading Activity By Company (Regular and Junior Market only) 2nd Quarter 2015

Closing Price

Volume

Value

30Jun-15

0

-

0.32

0.32

-

825

$1,403

1.70

1.85

-8.11%

Barbados Dairy Industries Limited

4,803

$7,485

1.60

1.50

6.67%

Barbados Farms Limited

2,667

$1,077

0.40

0.50

-20.00%

Banks Holdings Limited

738,008

$1,852,159

2.49

2.85

-12.63%

Fortress C'bean Property Fund - Dev Fund

376,776

$91,561

0.22

0.20

10.00%

Fortress C'bean Property Fund - Val Fund

541,052

$283,235

0.57

0.52

9.62%

Cave Shepherd And Company Limited

46,618

$139,781

3.00

3.00

0.00%

Cable And Wireless Barbados Limited

11,901

$28,676

3.00

3.00

0.00%

245,023

$465,532

1.90

1.90

0.00%

Goddard Enterprises Limited

33,871

$220,171

6.43

6.43

0.00%

Insurance Corporation Of Barbados Ltd

80,729

$208,915

2.60

2.40

8.33%

JMMB Group Limited

3,562

$534

0.15

0.15

0.00%

Emera (Caribbean) Incorporated

4,016

$103,131

25.70

25.70

0.00%

0

-

3.30

3.30

0.00%

Massy Holdings Limited

26,333

$526,740

20.00

19.96

0.20%

One Caribbean Media Limited

17,441

$120,649

7.00

6.77

3.40%

670

$1,441

2.26

2.26

0.00%

434,164

$760,637

1.76

1.72

2.33%

Trinidad Cement Limited

0

-

0.80

0.80

0.00%

West India Biscuit Company Limited.

0

-

10.46

10.46

0.00%

The West Indies Rum Distilleries Limited

50

$375

8.00

8.00

0.00%

Royal Fidelity Tigrs A Fund (Delisted)

0

-

N/A

-

N/A

Royal Fidelity Tigrs A1 Fund

0

-

10.00

10.00

0.00%

Royal Fidelity Tigrs A2 Fund

0

-

10.00

10.00

0.00%

Royal Fidelity Tigrs A3 Fund

0

-

10.00

10.00

0.00%

Security ABV Investments Incorporated BICO Limited

2015 First Quarter Report | 16

FirstCaribbean International Bank

Emera (Caribbean) Incorporated 5.5% Pref

Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation

2,568,509 $4,813,502

-

31Mar-15

% Change

-

A look at four other regional exchanges in Table 18 below shows that there has been general improvement in performance in the Barbados (BSE), Trinidad & Tobago (TTSE) and Jamaica (JSE) markets, however, the Eastern Caribbean (ECSE) market continues to record negative index movements.

The BSE Composite Index recorded increases over the three periods under examination, the largest being 2.35% over the six month period. The TTSE Composite Index also recorded its largest increase of 0.96% during this period while the JSE Market Index recorded its largest increase of 37.51% over the twelve month. The ECSE EC Share Index recorded declines of 14.7%, 13.49% and 12.9% for the three, six and twelve month respectively.

Comparative index values for 2014 are provided for reference and illustrate definite improvements for the BSE, TTSE and JSE while the ECSE continues to experience a slump in performance.

Looking towards the third quarter of 2015, we are ever hopeful that market conditions continue to improve. As part of its mission to foster an environment of confidence and trust in all activities in the capital markets through education, the BSE is set to host its third annual BSE Corporate Governance & Accountability Conference on September 24th and 25th, 2015 at the Hilton Barbados Resort. Attendees will be exposed to a host of topics including Enterprise Risk Management, Board Composition and Diversity as well as Cyber Security Threats and Mitigation.

Table 18 - Regional Comparison Regional Index Performance

First Three Month

BSE Composite Index

Half Six Month

2015 Twelve Month

% Change

First Three Month

Half Six Month

2014 Twelve Month

0.22%

2.35%

2.26%

2.13%

-8.54%

-17.38%

-8.22%

JSE Market Index

16.07%

27.40%

37.51%

9.76%

-5.97%

-12.27%

-8.55%

TTSE Composite Index

0.67%

0.96%

-0.40%

0.29%

-0.40%

-1.56%

3.49%

ECSE EC Share Index

-14.70%

-13.49%

-12.90%

1.41%

-1.99%

-4.03%

-7.42%

2015 First Quarter Report | 17

Conclusion

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