BSE First Quarter Report 2014

2

Overview Overall trading volume decreased by 26%, while at the same time, trading value decreased by 45% for the first quarter of 2014. The Put-Through Market was the only market to record increases in trading activity; 67% in terms of volume but a decline of 9% in terms of value. Regular Market activity fell by 48% in terms of volume traded and 54% in terms of value traded. The total number of trades increased by 24% from 298 in 2013 to 370 in 2014.

The Local and Composite market measures recorded decreases when compared to their December 31, 2013 figures.

The index values were impacted by declining share prices while the market capitalisation values were impacted both by falling prices and the delisting of one (1) security during the first quarter of 20141. The Cross-Listed Market measures were the best performers recording increases of 3.55% for both the index and market capitalisation measures respectively.

There were eleven (11) extraordinary trades2 occurring in the first quarter of 2013, however, no extraordinary transactions were recorded for the corresponding period in 2014. Removing these transactions would have resulted in an increase of in total trading volume of 35% and an increase in total trading value of 21%.

Table 1 – Year to date Statistics

Market

Year-to-Date

Year-to-Date

Year-to-Date

2014 Volume

2013 Volume

2014 Value

1,201,843

2,304,524

$

895,001

535,156

Junior

-

Block Trade

Regular Put Through

Total

2013 Value

Volume

Value

4,288,001 $

9,394,932

-48%

-54%

$

2,197,536 $

2,405,582

67%

-9%

-

$

- $

-

NA

NA

-

-

$

- $

-

NA

NA

2,096,844

2,839,680

$

6,485,537 $

11,800,514

-26%

-45%

1

See Company Comparative Activity Report section.

2

Year-to-Date % Change % Change

Ten (10) trades for Republic Bank Barbados Limited and one (1) trade for ANSA McAL Barbados Limited.

3

Regular Market Regular Market volume and value decreased for the first quarter of 2014 when compared to the same period in 2013.

Trading volume decreased by 47.85% from 2,304,524 in 2013 to 1,201,843 in 2014; whereas trading value decreased by 54.36%. However, during the period under review, there was a 10.38% increase in the number of trades occurring in the market.

A snapshot of the advance/decline ratio at the end of the first quarter of 2014 showed declines, with only four securities advancing and six declining versus six securities advancing in price and seven declining at the first quarter close of 2013.

At the close of the first quarter of 2013, there were ten trades related to the offer made by Republic Bank Limited for all the issued and outstanding shares of Republic Bank Barbados Limited (RBBL) and one trade related to AMCL Holdings Limited’s offer for ANSA McAL (Barbados) Limited, which resulted in a total of 1,281,206 shares being traded with a total value of $6,418,517.50. There were no extraordinary transactions recorded during the first quarter of 2014 and thus removing the significant transactions which occurred during the corresponding period of 2013 would have resulted in an increase in trading volume on the Regular Market of 17% and a corresponding increase in trading value of 44%.

Table 2 – 1st Quarter Regular Market Performance – Year on Year

31-Mar-14

31-Mar-13 % Change

Total Share Volume

1,201,843

2,304,524

-47.85%

Total Share Value

4,288,001

9,394,932

-54.36%

19,385

37,779

-48.69%

154,015

-55.09%

319

289

10.38%

62

61

1.64%

5.97

-2.13%

4/6

6/7

N/A

Local Index

2,568.58

3,084.37

-16.72%

Cross Listed Index

1,539.55

1,325.98

16.11%

668.90

738.76

-9.46%

Local Market Capitalisation

6,395,315,382

8,869,156,101

-27.89%

Cross-Listed Market Capitalisation

2,569,376,511

2,214,570,569

16.02%

Composite Market Capitalisation

8,964,691,893

11,103,526,670

-19.26%

26

28

-7.14%

Average Daily Share Volume Average Daily Share Value

$

Number of Trades Number of Trade Days Average Share Price Advance/Decline Ratio

Composite Market Index

Number of Listed Securities

$

69,161 $

5.84 $

4 Sagicor Financial Corporation was the most actively traded security on the market accounting for 31% of the number of trades occurring in the market. Insurance Corporation of Barbados Limited was the second most actively traded security, accounting for 9% of the number of trades for the quarter in this market. Figure 1 below illustrates the number of trades occurring on the Regular Market by security.

Figure 1 - No. of Trades – 1st Quarter 2014

98

26

TCL

2 WIR

0 0 WIB

0 SFC65

SFC

OCM

NML

LPH 5.5%

0 LPH

JMMB

ICBL

No. of Trades

No. of Trades - 1st Qtr. 2014

15 13

7 GEL

CWBL

BHL BICO

CSP

BFL

28

24

0 CPFVF

2 CPFDF

1

3

BDI

0

21 19 15 19

FCI

26

ARI

100 90 80 70 60 50 40 30 20 10 0

Table 3 and Table 4 below, show the top traded companies for the quarter based on volume and value respectively.

Sagicor Financial Corporation was the top performer in terms of volume while Light and Power Holdings Limited was the top performer in terms of value. Forttress Caribbean Property Fund Limited – Development Fund was second in terms of volume traded, while Sagicor Financial Corporation was second in terms of value traded.

Table 3 – Top five traded companies by volume

2014

2013

2014

2013

Company

Volume

Volume

Value

Value

Sagicor Financial Corporation

273,596

212,418 $

615,520 $

453,869

Fortress Caribbean Property Fund Limited - Dev. Fund

199,871

0 $

35,652 $

-

Fortress Caribbean Property Fund Limited- Val. Fund

182,726

0 $

87,432 $

-

Banks Holdings Limited

109,287

12,041 $

333,693 $

34,944

Insurance Corporation of Barbados Limited

106,587

39,316 $

276,298 $

101,123

Table 4 – Top five traded companies by value

Company Light And Power Holdings Limited

2014

2013

2014

2013

Volume

Volume

Value

Value

61,130

3,482 $

1,570,972 $

89,487

Sagicor Financial Corporation

273,596

212,418 $

615,520 $

453,869

One Caribbean Media Limited

69,465

93774 $

420,777 $

442,821

109,287

12,041 $

333,693 $

34,944

51,008

90,808 $

313,718 $

549,825

Banks Holdings Limited Goddard Enterprises Limited

5

Junior Market, Block Trade Market & Put-Through Market There was no trading activity recorded for the Junior or Block Trade Markets for the first quarter of 2014. The PutThrough Market did, however, record an increase of 67% in terms of volume but a decrease of 9% in terms of value.

Table 5 below illustrates the activity which occurred on this market as at March 31, 2014.

Table 5 – Put-through Market Activity - 1st Quarter 2014

Company

No. of Trades

Volume

Value

Banks Holdings Limited

3

20,280 $

65,812

FirstCaribbean International Bank

1

3,366 $

10,435

Goddard Enterprises Limited

1

25,396 $

158,725

Sagicor Financial Corporation

46

845,959 $

1,962,565

TOTAL

51

895,001 $

2,197,537

6

Fixed Income Market There were 72 trades recorded on this market, with a total volume of 661,000 bonds traded as compared to the 51 trades and 3,388,000 bonds traded at the close of the first quarter of 2013. Table 6 below, gives details on each bond traded as at March 31, 2014.

Table 6 – Fixed Income Market activity –1st Quarter 2014

Security

No. of Trades

Amount Traded

Barbados Government Debenture 4.75% 2016

2

54,000

Barbados Government Debenture 5.875% 2018

2

4,000

Barbados Government Debenture 6.125% 2021

7

40,000

Barbados Government Debenture 6.25% 2019

2

11,000

Barbados Government Debenture 6.25% 2022

3

3,000

Barbados Government Debenture 6.625% 2020

3

52,000

Barbados Government Debenture 6.75% 2021

2

6,000

Barbados Government Debenture 6.875% 2023

8

168,000

Barbados Government Debenture 6.875% 2024

4

13,000

Barbados Government Debenture 7% 2023

4

15,000

Barbados Government Debenture 7.125% 2026

1

4,000

Barbados Government Debenture 7.25% 2026

1

20,000

Barbados Government Debenture 7.375% 2027

3

12,000

Barbados Government Debenture 7.375% 2029

2

2,000

Barbados Government Debenture 7.75% 2025

2

12,000

Barbados Government Debenture 7.75% 2032

2

2,000

Barbados Government Debenture 8.50% 2018

1

1,000

Barbados Government T/Note 4.375% 2014

1

1,000

Barbados Government T/Note 5.875% 2015

3

170,000

Barbados Government T/Note 6% 2016

9

34,000

Barbados Government T/Note 6% 2018

1

9,000

Barbados Government T/Note 6.125% 2021

1

17,000

Barbados Government T/Note 6.25% 2018

2

2,000

Barbados Government T/Note 6.375% 2019

1

1,000

Barbados Government T/Note 6.5% 2019

1

1,000

Barbados Government T/Note 6.625% 2019

4

7,000

TOTAL

72

661,000

7

Index and Market Capitalisation Movement A year on year comparison of the Index and Market Capitalisation performance (Table 7 and 8) shows that only the Cross-Listed Index experienced an increase over the last 12 months. Performance of the Cross-Listed Securities showed improvement as One Caribbean Media Limited experienced share price appreciation; Neal and Massy Holdings Limited traded firm, while Trinidad Cement Limited and Jamaica Money Market Brokers Limited did not trade. The Local Index registered the largest decline of 16.72% when compared to its position at the corresponding period in 2013 as six securities registered declines in share price over the 12 month period. Figure 2 - Index Movement March 2012 to March 2013 illustrates the trend of the indices over the period under consideration.

The Market Capitalisation figures illustrated in Table 8 below show improvements in the Cross-Listed Market Capitalisation figure, which recorded the only increase of 16.02% due largely in part to a 27.71% increase in price of One Caribbean Media Limited.

Table 7 – Index Comparison – Year on Year

Index

31-Mar-14

31-Mar-13

% Change

Local

2,568.58

3,084.37

-16.72%

Cross-Listed

1,539.55

1,325.98

16.11%

668.90

738.76

-9.46%

Index

31-Mar-14

31-Mar-13

% Change

Local

6,395,315,382

8,869,156,101

-27.89%

Composite

Table 8 – Market Capitalization comparison – Year on Year

Cross-Listed

2,569,376,511

2,214,570,569

16.02%

Composite

8,964,691,893

11,103,526,670

-19.26%

8 Figure 2 – Index Movement March 2013 to March 2014

Year on Year Index Comparison 20.00% 15.00%

% Change

10.00% 5.00%

Local Index

0.00%

Cross-Listed Index Composite Index

-5.00% -10.00% -15.00% -20.00%

The indices and Market Capitalisation measures for the first quarter of 2014 (Table 9 and 10) showed similar results as only the Cross-Listed Index measure recorded a marginal increase of 3.55% over its December 2013 figure. The Cross-Listed Market Capitalisation measure showed improvement; the decreases experienced for the Local and Composite Market Capitalisation measures were 20.05% and 14.46% respectively.

Table 9 – Index Comparison 1st Quarter

Index

31-Mar-14

31-Dec-13

% Change

Local

2,568.58

2,995.52

-14.25%

Cross-Listed

1,539.55

1,486.78

3.55%

668.90

740.42

-9.66%

Composite

Table 10 – Market Capitalization Comparison – 1st Quarter

Index

31-Mar-14

31-Dec-13

% Change

Local

6,395,315,382

7,999,308,023

-20.05%

Cross-Listed

2,569,376,511

2,481,309,653

3.55%

Composite

8,964,691,893

10,480,617,676

-14.46%

9

Company Activity Comparative Report For the first quarter of 2014 four (4) securities advanced, six (6) declined, six (6) remained unchanged and ten (10) did not trade; there was one (1) delisting3. This as compared to six (6) securities advanced, seven (7) declined, eight (8) remained unchanged and seven (7) did not trade; one of which was suspended for the corresponding period in 2013.

Fortress Caribbean Property Fund - Development Fund was the top performer for the quarter climbing 81.82% from $0.11 at the close of 2013 to $0.20 at the close of the first quarter of 2014. One Caribbean Media Limited (27.71%), Fortress Caribbean Property Fund – Value Fund (17.5%) and Barbados Farms Limited (2%) were the remaining securities experiencing increases during the quarter.

Barbados Dairy Industries Limited registered the largest decline of the quarter as its share price fell by 50% from $3.00 to $1.50. FirstCaribbean International Bank (19.46%) and Cable and Wireless Barbados Limited (11.76%) were the only other companies to register a decline in excess of 10% for the first quarter of 2014. Table 11 on the next page, illustrates the price movements for the first quarter of 2014.

3

Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Barbados Shipping & Trading Company Limited (BST) were delisted from the Board of the BSE on February 5, 2014.

10 Table 11 – 1st Quarter Trading Activity by Company (Regular and Junior Markets only)

SECURITY Almond Resorts Incorporated

1st Quarter 2014

1st Quarter 2014

Volume

Value

CLOSING PRICE

CLOSING PRICE

% Change

Mar 31 December 31 2014 2013

0

$

-

0.32

0.32

0.00%

BICO Industries Limited

360

$

596

1.65

1.80

-8.33%

Barbados Dairy Industries Limited

500

$

750

1.50

3.00

-50.00%

Barbados Farms Limited

3,783

$

1,916

0.51

0.50

2.00%

Banks Holdings Limited

109,287

$

333,693

3.03

3.03

0.00%

0

$

-

0.32

0.32

0.00%

Fortress Caribbean Property Fund - Dev Fund

199,871

$

35,652

0.20

0.11

81.82%

Fortress Caribbean Property Fund - Val Fund

182,726

$

87,432

0.47

0.40

17.50%

Cave Shepherd and Company Limited

25,602

$

64,038

2.49

2.70

-7.78%

Cable and Wireless Barbados Limited

38,669

$

116,194

3.00

3.40

-11.76%

FirstCaribbean International Bank

57,029

$

134,318

2.40

2.98

-19.46%

Goddard Enterprises Limited

51,008

$

313,718

6.15

6.15

0.00%

106,587

$

276,298

2.60

2.60

0.00%

0

$

-

0.15

0.15

0.00%

61,130

$

1,570,972

25.70

25.70

0.00%

0

$

-

3.11

3.11

0.00%

Neal And Massey Holdings Limited

12,230

$

236,127

17.25

17.25

0.00%

One Caribbean Media Limited

69,465

$

420,777

6.13

4.80

27.71%

0

$

-

2.26

2.26

0.00%

273,596

$

615,520

2.10

2.24

-6.25%

Trinidad Cement Limited

0

$

-

0.80

0.80

0.00%

West India Biscuit Company Limited

0

$

-

10.03

10.03

0.00%

10,000

$

80,000

8.00

8.00

0.00%

Royal Fidelity TIGRS A Fund

0

$

-

10.50

10.50

0.00%

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%

1,201,843

$

4,288,001

Barbados Shipping & Trading Co. Limited4

Insurance Corporation of Barbados Limited Jamaica Money Market Brokers Limited Light and Power Holdings Limited Light And Power Holdings Limited 5.5% Pref.

Sagicor Financial Corporation 6.5% Pref.

Sagicor Financial Corporation

The West Indies Rum Distilleries Limited

4

Barbados Shipping & Trading Company Limited (BST) was delisted on February 5, 2014.

11 Table 12 below, illustrates the price movements over the last twelve months.

Table 12 - Year on Year Trading Activity by Company (Regular and Junior Market only)

SECURITY

1st Quarter 2014

1st Quarter 2014

Volume

CLOSING PRICE

CLOSING PRICE

Value

Mar 31 2014

Mar 31 2013

% Change

ANSA McAL (Barbados) Limited - Delisted

0

$

-

-

11.75

NA

Almond Resorts Incorporated

0

$

-

0.32

0.40

-20.00%

109,287

$

333,693

3.03

2.90

4.48%

500

$

750

1.50

3.00

-50.00%

3,783

$

1,916

0.51

1.00

-49.00%

Banks Holdings Limited Barbados Dairy Industries Limited Barbados Farms Limited

0

$

-

0.32

7.58

-95.78%

360

$

596

1.65

1.70

-2.94%

Cable and Wireless Barbados Limited

38,669

$

116,194

3.00

5.00

-40.00%

Cave Shepherd and Company Limited

25,602

$

64,038

2.49

4.35

-42.76%

FirstCaribbean International Bank

57,029

$

134,318

2.40

2.98

-19.46%

0

$

-

-

0.80

NA

Barbados Shipping & Trading Co. Ltd. - Delisted BICO Industries Limited

Fortress Caribbean Property Fund - Delisted Fortress C'bean Property Fund - Dev Fund

199,871

$

35,652

0.20

-

NA

Fortress C'bean Property Fund - Value Fund

182,726

$

87,432

0.47

-

NA

51,008

$

313,718

6.15

6.10

0.82%

106,587

$

276,298

2.60

2.55

1.96%

Jamaica Money Market Brokers Limited

0

$

-

0.15

0.15

0.00%

Light And Power Holdings Ltd 5.5% Pref.

0.00%

Goddard Enterprises Limited Insurance Corporation Of Barbados Limited

0

$

-

3.11

3.11

Light and Power Holdings Limited

61,130

$

1,570,972

25.70

25.70

0.00%

Neal And Massey Holdings Limited

12,230

$

236,127

17.25

14.60

18.15%

One Caribbean Media Limited

69,465

$

420,777

6.13

4.76

28.78%

0

$

-

-

5.00

NA

273,596

$

615,520

2.10

2.15

-2.33%

Sagicor Financial Corporation 6.5% Pref.

0

$

-

2.26

2.26

0.00%

The West Indies Rum Distilleries Limited

Republic Bank Barbados Limited - Delisted Sagicor Financial Corporation

10,000

$

80,000

8.00

7.99

0.13%

Trinidad Cement Limited

0

$

-

0.80

0.80

0.00%

West India Biscuit Company Limited

0

$

-

10.03

10.02

0.10%

Royal Fidelity TIGRS A Fund

0

$

-

10.50

10.50

0.00%

Royal Fidelity TIGRS A1 Fund

0

$

-

10.00

10.00

0.00%

Royal Fidelity TIGRS A2 Fund

0

$

-

10.00

10.00

0.00%

0

$

-

10.00

10.00

0.00%

1,201,843

$

4,288,001

Royal Fidelity TIGRS A3 Fund

12

Conclusion Table 13 – Year to date Index Comparison5

Index Name

Region/Exchange

BSE Composite Index

Barbados Stock Exchange

JSE Market Index

Jamaica Stock Exchange

TTSE Composite Index

Trinidad and Tobago Stock Exchange

Closing Mar 31 2014 668.9

Closing Dec 31 2013

% Change

740.42

-9.66%

75,227.56 80,633.55

-6.70%

1,171.28

1,185.05

-1.16%

At first glance, the activity occurring on the board of the BSE for the first quarter of 2014 is less than positive, especially when compared to the first quarter of 2013 figures. However, as previously stated, a comparison of regular trading activity, less any takeover transactions, would have resulted in increases in both volumes and values traded at the close of the period over the corresponding period in the previous year.

An examination of closing indices for exchanges across the region reveal that they too are experiencing a downturn in market performance when compared to their closing values as at December 31, 2013. While the BSE’s Composite Index recorded the highest decline, market measures for both the Jamaica Stock Exchange (JSE) and the Trinidad and Tobago Stock Exchange (TTSE) also experienced declines. The JSE Market Index experienced a 6.70% decrease and the TTSE Composite Index recorded a decrease of 1.16%.

Despite the challenges being faced by the market and the wider economy, the BSE continues to strive to ensure that the marketplace, the Listed Companies and its trading participants operate in a manner which is both transparent and efficient with well established policies and procedures to guarantee the highest level of confidence is maintained at all times. To this end, on January 1, 2014 the BSE’s Corporate Governance Recommendations for Listed Companies and its Insider Trading Guidelines for Listed Companies became enforceable. Twelve days later, having received requisite approval from the Financial Services Commission (FSC), on January 13, 2014, the new domestic Rules of the Barbados Stock Exchange Inc. became effective.

We believe that the new Recommendations, Guidelines and Rules will further strengthen the marketplace in preparation for any opportunities to be had once the wider economy starts to see relief from the negative impacts of the global economic recession.

5

Kindly note that the Eastern Caribbean Stock Exchange’s ECSE Index value at the close of the first quarter of 2014 was not available as at the date this report was prepared.

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