BSE Third Quarter Report 2017

2017 THIRD QUARTER REPORT

Overview At the close of the first nine months of 2017, trading activity on the Barbados Stock Exchange (BSE) recorded decreases in both trading volumes and values. As illustrated in Table 1, the total volume of shares traded decreased by 75% while total value of shares traded decreased by 81% when compared to the corresponding period in 2016. The Regular and Put Through Market recorded decreases in terms of both volume and value while the Block Trade Market was the only market to experience increases. There was no activity on the Junior Market.

The Block Trade Market recorded one transaction which saw a total of 2.5 million shares trading with a total value

of $25.8 million dollars. When compared to the corresponding period in 2016, two transactions, in two separate securities – One Caribbean Media Limited and Goddard Enterprises Limited – were recorded which saw 2.5 million shares trading with a total value of $16.7 million dollars.

The third quarter of 2017 was characterized by decreases in total trading activity as there was significant declines in the levels of negotiated market transactions. Regular Market trading volumes showed improvement, however, trading values recording negligible declines.

Total trading volume and value for the quarter fell by 32% and 70% respectively (See Table 2).

Table 1 – Trading Activity for First Nine Months

Year-to-Date Market Regular Put - Through Junior Block Trade Total

Volume 2017 2016 6,025,366 32,274,983 239,966 571,286 2,519,171 2,501,315 8,784,503 35,347,584

Value ($) 2017 2016 16,245,130 206,387,091 604,659 1,447,544 25,771,119 16,656,187 42,620,909 224,490,822

% Change Volume Value -81 -92 -58 -58 NA NA 1 55 -75 -81

Table 2 – Trading Activity for Third Quarter

Third Quarter Market Regular Put - Through Junior Block Trade Total

Volume 2017 2016 2,559,547 1,498,594 3,326 147,265 2,132,546 2,562,873 3,778,405

Value ($) 2017 2016 6,624,271 7,408,020 8,315 565,776 14,074,804 6,632,586 22,048,600

% Change Volume Value 71 -11 -98 -99 NA NA -100 -100 -32 -70

|3

Regular Market The Regular Market recorded decreases in both the total volume and total value traded at the end of the third quarter of 2017. As illustrated in Table 3, the total share volume was 6,025,366 – an 81% decline – when compared to the 32,274,983 shares traded for the same period in 2016. There was also a substantial decrease of 92% in the value of shares traded at the end of the quarter as compared to the same period in 2016. The number of trades occurring on the Regular Market increased by 9% as 1,315 trades occurred by the close of the third quarter of 2017; this as compared to 1,209 trades in 2016. Figure 1 illustrates a monthly comparison of the volume of Regular Market trades for 2017 and 2016.

The average share price fell 17% while the Advance/ Decline Ratio (ADR) at the close of the third quarter of 2017 saw eleven (11) securities advancing and five

(5) securities declining. This as compared to ten (10) securities advancing and three (3) declining at the close of the third quarter of 2016. There were mixed results for the market measures – Indices and Market Capitalization – due primarily to the delisting of two (2) Cross-Listed securities – Massy Holdings Limited and Trinidad Cement Limited1. The Cross-Listed Index recorded a decrease of 27% while the Local and Composite indices recorded increases of 21% and 14% respectively. For the Market Capitalization measures, the Local market cap recorded an increase of 10% while the Cross-Listed and Composite market caps declined by 70% and 11% respectively. The number of securities listed for the period ended September 30th, 2017 decreased to 19; down from 23 at the close of the third quarter of 2016.

1

See Company Activity Comparative Report.

Figure 1 – No. of Trades – 1st Quarter 2017 2017

2016

217

220

207 172

165

165

123

152

154

147 129

110

109

114

145

144

139

103

101 102

101

55

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

4

Third Quarter Report 2017

Table 4 and Table 5 show the top traded companies by volume and value for the year-to-date. Sagicor Financial Corporation Limited was the top traded security in terms of volume, accounting for 23% of the total volume traded for the period January 1st to September 30th, 2017. Fortress Caribbean Property Fund – Value Fund and FirstCaribbean International Bank rounded out the top three volume performers accounting for 19% and 16% respectively.

In terms of value traded, Goddard Enterprises Limited was the best performer, accounting for 23% of the total value traded, while Sagicor Financial Corporation Limited (20%) and FirstCaribbean International Bank (15%) were

the second and third best performers respectively.

Sagicor Financial Corporation Limited remained the most actively traded security on the board of the Exchange accounting for 34% of the number of trades conducted as at the close of the third quarter of 2017.

As Table 6 and Table 7 illustrate, FirstCaribbean International Bank and Sagicor Financial Corporation Limited were the top two traded securities for the third quarter in terms of volume. In terms of value, Goddard Enterprises Limited and FirstCaribbean International Bank were the top two traded securities for the third quarter of the 2017.

Table 3 – Year on Year Regular Market Statistics 30-Sep-17

30-Sep-16

% Change

Total Share Volume

6,025,366

32,274,983

-81

Total Share Value

16,245,130

206,387,091

-92

32,221

172,593

-81

$86,872

$1,103,674

-92

1,315

1,209

9

187

187

0

$4.97

$5.96

-17

11/5

10/3

N/A

Local Index

3,111.71

2,566.98

21

Cross – Listed Index

980.30

1,351.78

-27

Composite Market Index

737.09

645.24

14

6,758,236,417

6,157,001,105

10

661,741,683

2,226,455,047

-70

7,419,978,100

8,383,456,152

-11

19

23

-17

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

Local Market Capitalization Cross-Listed Market Capitalization Composite Market Capitalization Number of Listed Securities

|5 Table 4 – Top Five Traded Companies by Volume: Year-to-Date 2017

2016

2017

2016

Volume

Volume

Value ($)

Value ($)

Sagicor Financial Corporation Limited

1,386,961

1,615,356

3,284,553

3,206,006

Fortress Caribbean Property Fund - Val Fund

1,136,212

400,328

570,845

237,826

FirstCaribbean International Bank

992,943

1,003,942

2,435,181

1,961,617

Fortress Caribbean Property Fund - Dev Fund

767,418

416,857

116,317

80,744

Insurance Corporation Of Barbados Limited

454,032

1,095,716

1,715,476

2,976,136

2017

2016

2017

2016

Value ($)

Value ($)

Volume

Volume

Goddard Enterprises Limited

3,682,740

1,619,320

364,181

207,646

Sagicor Financial Corporation Limited

3,284,553

3,206,006

1,386,961

1,615,356

FirstCaribbean International Bank

2,435,181

1,961,617

992,943

1,003,942

Insurance Corporation Of Barbados Limited

1,715,476

2,976,136

454,032

1,095,716

The West Indies Rum Distillery Limited

1,520,476

7,560

152,578

945

2017

2016

2017

2016

Value ($)

Value ($)

Volume

Volume

FirstCaribbean International Bank

719,006

118,230

1,768,038

243,785

Sagicor Financial Corporation Limited

497,997

256,379

1,223,960

489,587

Fortress Caribbean Property Fund - Val Fund

428,941

194,625

196,331

114,264

Fortress Caribbean Property Fund - Dev Fund

400,785

39,977

62,711

7,516

Goddard Enterprises Limited

169,940

95,248

1,867,945

784,119

2017

2016

2017

2016

Company

Value ($)

Value ($)

Volume

Volume

Goddard Enterprises Limited

1,867,945

784,119

169,940

95,248

FirstCaribbean International Bank

1,768,038

243,785

719,006

118,230

Sagicor Financial Corporation

1,223,960

489,587

497,997

256,379

Banks Holdings Limited

557,854

1,203,656

78,571

169,529

Insurance Corporation Of Barbados Limited

327,511

71,730

87,479

21,727

Company

Table 5 – Top Five Traded Companies by Value: Year-to-Date

Company

Table 6 – Top Five Traded Companies by Volume: 3rd Quarter

Company

Table 7 – Top Five Traded Companies by Value: 3rd Quarter

6

Annual Report 2017

Put Through Market Table 8 illustrates the Put Through transactions which have occurred as at September 30th, 2017. The Put Through Market recorded decreases of 58% in terms of both volume and value respectively, for the period under examination over the corresponding period in 2016. A total of five hundred and twenty-one (521) trades were conducted across two (2) securities.

Table 8: Put Through Market Activity - Year-to-Date Company

No. of Trades

Volume

Value ($)

1

3,000

27,600.00

Sagicor Financial Corporation

520

236,966

577,059.30

Total

521

239,966

604,659.30

Goddard Enterprises Limited

Block Trade & Junior Market For the period ended September 30th, 2017, there was one (1) block trade transaction. The West Indies Rum Distillery Limited was the sole security trading a total of 2,519,171 shares at $10.225586 on March 10th, 2017. This transaction was approved by the BSE as it was in accordance with Item 2(d), Section 7.01.20 - Block Trade Rule - of the Rules of the Barbados Stock Exchange Inc. which states, “the sale and purchase of a Listed Security pursuant to a takeover, conducted or to be conducted in accordance with the applicable laws�.

There was no activity on the Junior Market as at September 30th, 2017.

Bond Market As at September 30th, 2017 twenty-eight (28) Barbados Government Debentures and fourteen (14) Barbados Government Treasury Notes traded on the board of the Exchange as compared to twenty-eight (28) Barbados Government Debentures and thirteen (13) Barbados Government Treasury Notes traded on the board of the Exchange trading for the corresponding period in 2016. There was a total of 151 trades occurring on the Bond Market resulting in a face value of $4,349,000 trading as compared to 173 trades resulting in a face value of $42,801,000 trading as at September 30th, 2016. Table 9 summarizes all bonds traded for the period ended September 30th, 2017.

Table 9: Summary of Bonds Traded Security

No. of Trades

Face Value

Barbados Government Debenture 6% 2020

4

40,000

Barbados Government Debenture 6.25% 2019

1

7,000

Barbados Government Debenture 6.25% 2022

3

3,000

Barbados Government Debenture 6.75% 2021

1

1,000

Barbados Government Debenture 7% 2017

2

2,000

Barbados Government Debenture 7% 2023

9

20,000

|7

Security

No. of Trades

Face Value

Barbados Government Debenture 7% 2024

2

2,000

Barbados Government Debenture 7% 2028

2

11,000

Barbados Government Debenture 7.25% 2026

1

2,000

Barbados Government Debenture 7.25% 2028

1

1,000

Barbados Government Debenture 7.25% 2029

4

75,000

Barbados Government Debenture 7.5% 2026

1

50,000

Barbados Government Debenture 7.75% 2025

4

12,000

Barbados Government Debenture 7.75% 2032

2

1,000

Barbados Government Debenture 7.75% 2033

1

3,000

Barbados Government Debenture 7.75% 2035

2

22,000

Barbados Government Debenture 7.75% 2036

1

60,000

Barbados Government Debenture 8.5% 2018

1

1,000

Barbados Government Debenture 5.875% 2018

2

2,000

Barbados Government Debenture 6.125% 2021

7

135,000

Barbados Government Debenture 6.625% 2018

1

35,000

Barbados Government Debenture 6.625% 2020

6

743,000

Barbados Government Debenture 6.875% 2020

1

6,000

Barbados Government Debenture 6.875% 2023

14

78,000

Barbados Government Debenture 6.875% 2024

2

9,000

Barbados Government Debenture 7.125% 2026

9

202,000

Barbados Government Debenture 7.375% 2027

14

193,000

Barbados Government Debenture 7.375% 2029

5

5,000

Barbados Government T/Note 4% 2018

2

6,000

Barbados Government T/Note 4.25% 2019

5

14,000

Barbados Government T/Note 5.5% 2020

9

36,000

Barbados Government T/Note 6% 2019

1

2,000,000

Barbados Government T/Note 6% 2020

3

225,000

Barbados Government T/Note 6.25% 2018

8

46,000

Barbados Government T/Note 6.25% 2021

1

10,000

Barbados Government T/Note 6.25% 2024

7

37,000

Barbados Government T/Note 6.5% 2019

3

28,000

Barbados Government T/Note 6.5% 2025

2

6,000

Barbados Government T/Note 6.125% 2020

1

10,000

Barbados Government T/Note 6.375% 2019

1

1,000

Barbados Government T/Note 6.625% 2019

4

9,000

Barbados Government T/Note 6.625% 2020

1

200,000

151

4,349,000

Totals

8

Third Quarter Report 2017

Index & Market Capitalization Movement There were mixed results for the Indices and Market Capitalization when examined over the past three, nine and twelve-month periods. For the third quarter, as illustrated in Table 10, the Local and Composite Indices recorded increases of 6.17% and 5.34% respectively while the Cross-Listed Index recorded a decline of 2.44% from its positions at June 30th, 2017. When the comparison is extended to nine months (Table 11), the Local and Composite Indices recorded improvements – 19.73% and 13.08% respectively, however, the CrossListed Index recorded a decline of 27.79%. Over the twelve months (Table 12), only the Cross-Listed Index recorded a decline of 27.48% while the Local and Composite Indices recorded increases of 21.22% and 14.23% respectively.

The Market Capitalization comparisons are illustrated in Table 13 - 15. The Local and Composite Market Capitalization measures for the three month recorded increases, however, the Cross Listed measure recorded a decline. When extended to the nine and twelve months, only the Local Market Capitalization measure recorded increases. The third quarter results can be attributed to price improvements in nine listed securities. Figure 2 illustrates index movements over the last twelve months.

Figure 2 - Index Movement - 12 months Local Index

Cross-Listed Index

Composite Index

30% 24% 18%

6% 0% -6% -12% -18%

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

Dec

Nov

-30%

Oct

-24% Sep

% Change

12%

|9 Table 10 – Index Comparison 3rd Quarter Index

30-Sep-17

30-Jun-17

% Change

Local

3,111.71

2,930.95

6.17

Cross-Listed

980.30

1,004.82

-2.44

Composite

737.09

699.73

5.34

Table 11 – Index Comparison Nine Months Index

30-Sep-17

31-Dec-16

% Change

Local

3,111.71

2,598.89

19.73

Cross-Listed

980.30

1,357.55

-27.79

Composite

737.09

651.85

13.08

Table 12 - Index Comparison Year-on-Year Index

30-Sep-17

31-Dec-16

% Change

Local

3,111.71

2,566.98

21.22

Cross-Listed

980.30

1,351.78

-27.48

Composite

737.09

645.24

14.23

30-Sep-17

31-Dec-16

% Change

6,758,236,417

6,365,642,196

6.17

661,741,683

678,295,603

-2.44

7,419,978,100

7,043,937,799

5.34

30-Sep-17

31-Dec-16

% Change

6,758,236,417

5,643,146,945

19.76

661,741,683

2,235,947,791

-70.40

7,419,978,100

7,879,094,736

-5.83

30-Sep-17

31-Dec-16

% Change

6,758,236,417

6,157,001,105

9.77

661,741,683

2,226,455,047

-70.28

7,419,978,100

8,383,456,152

-11.49

Table 13 - Market Capitalization Comparison 3rd Quarter Market Capitalization Local Cross-Listed Composite

Table 14 - Market Capitalization Comparison Nine Months Market Capitalization Local Cross-Listed Composite

Table 15 - Market Capitalization Comparison Year-on-Year Market Capitalization Local Cross-Listed Composite

10

Third Quarter Report 2017

Company Activity Comparative Report For the first nine months of the year, ending September 30, 2017, eleven (11) securities advanced – one of which did not trade2, five (5) declined, two (2) remained unchanged, one (1) did not trade and two (2) securities were delisted3. This is compared to ten (10) securities advanced, three (3) declined, nine (9) remained unchanged, one (1) new listing4 which did not trade and two (2) securities were delisted for the corresponding period in 2016.

ABV Investments Incorporated was the top advancer for the first nine months of 2017 experiencing a 650% increase in price from $0.02 as at December 30th, 2016 to $0.15 at the close of the third quarter of 2017. Barbados Farms Limited (167.74%), Barbados Dairy Industries Limited (31.58%), The West Indies Rum Distillery Limited (27.88%), FirstCaribbean International Bank (26.19%), Sagicor Financial Corporation Limited (22.39%) and Goddard Enterprises Limited (22.20%) were the other securities to experience share price appreciation above 20%.

As previously mentioned, five companies experienced declines, however; only three suffered declines in excess of 10% for the first nine months of 2017. Fortress Caribbean Property Fund – Development Fund suffered a 25% decline in price as the share price fell from $0.20 at the close of 2016 to $0.15 as at September 30, 2017.

Fortress Caribbean Property Fund – Value Fund (18.18%) and Cable and Wireless Barbados Limited (11.92%) were the other two companies to experience double digit declines. Table 16 illustrates the year to date trading activity for all Regular and Junior Market securities.

For the third quarter of 2017, nine (9) securities advanced, four (4) declined, one (1) remained unchanged and five (5) did not trade. This is compared to five (5) securities advanced, five (5) declined, nine (9) remained unchanged and four (4) did not trade; one (1) security was delisted.

Table 17 illustrates the third quarter trading activity for all Regular and Junior Market securities.

2 Emera Deposit Receipt – Due to the calculation of Emera Deposit Receipt’s closing price being dependent on its parent security’s – EMERA – closing price on the Toronto Stock Exchange (TSX) and the currency exchange rate (CDN to BDS) – this security can advance or decline in price with or without any trading activity.

3 Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Massy Holdings Limited were delisted from the Board of the BSE on January 9th, 2017.

Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Trinidad Cement Limited were delisted from the Board of the BSE on March 6th, 2017 4 Emera Deposit Receipt - The Barbados Stock Exchange Inc. (BSE) wishes to advise that, effective January 8th, 2016, the BSE has listed 5,129,581 Emera Deposit Receipts. The listing price for this new security is $14.82 and the trading symbol for this security is EMABDR.

| 11

Table 16 - Year-to-date Trading Activity by Company (Regular and Junior Market (J) only) YTD 2017 Security

Closing Price

% Change

Volume

Value ($)

Sep-30-17

Dec-31-16

ABV Investments Incorporated

14,000

1,900

0.15

0.02

650.00

BICO Limited

27,460

59,482

2.19

2.05

6.83

7,405

14,939

2.50

1.90

31.58

Barbados Farms Limited

72,702

31,406

0.83

0.31

167.74

Banks Holdings Limited

165,951

1,178,252

7.10

7.10

0.00

Fortress C'bean Property Fund - Dev Fund

767,418

116,317

0.15

0.20

-25.00

Fortress C'bean Property Fund - Val Fund

1,136,212

570,845

0.45

0.55

-18.18

Cave Shepherd And Company Limited

97,058

348,135

4.02

3.50

14.86

Cable And Wireless Barbados Limited

209,476

493,519

2.29

2.60

-11.92

FirstCaribbean International Bank

992,943

2,435,181

2.65

2.10

26.19

Goddard Enterprises Limited

364,181

3,682,740

11.01

9.01

22.20

Insurance Corporation Of Barbados Ltd

454,032

1,715,476

3.70

3.76

-1.60

800

120

0.15

0.15

0.00

Emera Deposit Receipt

0

-

18.60

16.55

12.39

Massy Holdings Limited

0

-

N/A

13.50

N/A

46,113

301,623

6.30

6.94

-9.22

0

-

2.26

2.26

0.00

1,386,961

3,284,553

2.46

2.01

22.39

Trinidad Cement Limited

111,513

168,385

-

0.85

N/A

West India Biscuit Company Limited

18,563

321,781

17.35

15.95

8.78

152,578

1,520,476

10.23

8.00

27.88

6,025,366

16,245,130

Barbados Dairy Industries Limited

JMMb Group Limited

One Caribbean Media Limited Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation

The West Indies Rum Distillery Limited Total

12

Third Quarter Report 2017

Table 17 - 3rd Quarter Trading Activity By Company (Regular and Junior Market (J) only) 3rd Quarter 2017 Security

Closing Price

% Change

Volume

Value ($)

Sep-30-17

Jun-30-17

12,000

1,800

0.15

0.05

200.00

BICO Limited

0

-

2.19

2.19

0.00

Barbados Dairy Industries Limited

0

-

2.50

2.50

0.00

Barbados Farms Limited

10,026

8,322

0.83

0.50

66.00

Banks Holdings Limited

78,571

557,854

7.10

7.10

0.00

Fortress C'bean Property Fund - Dev Fund

400,785

62,711

0.15

0.12

25.00

Fortress C'bean Property Fund - Val Fund

428,941

196,331

0.45

0.50

-10.00

Cave Shepherd And Company Limited

19,897

79,617

4.02

3.68

9.24

Cable And Wireless Barbados Limited

104,813

239,785

2.29

2.21

3.62

FirstCaribbean International Bank

719,006

1,768,038

2.65

2.46

7.72

Goddard Enterprises Limited

169,940

1,867,945

11.01

10.01

9.99

87,479

327,511

3.70

3.73

-0.80

JMMB Group Limited

0

-

0.15

0.15

0.00

Emera Deposit Receipt

0

-

18.60

18.41

1.03

20,977

132,155

6.30

6.55

-3.82

0

-

2.26

2.26

0.00

497,997

1,223,960

2.46

2.45

0.41

9,115

158,242

17.35

17.36

-0.06

0

-

10.23

10.23

0.00

2,559,547

6,624,271

-

-

ABV Investments Incorporated

Insurance Corporation Of Barbados Ltd

One Caribbean Media Limited Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation West India Biscuit Company Limited The West Indies Rum Distillery Limited Total

| 13

Conclusion An examination of third quarter 2017 performance versus third quarter of 2016 would initially lead one to believe that the market was not performing as positively as would be desired. Overall activity was impacted by the marked reduction in negotiated transactions from both the Put Through and Block Trade Markets. Regular Market activity was more representative of normal conditions in the marketplace.

Trading volumes increased, however, the securities traded did not experience sufficient share price appreciation to reflect a corresponding increase in value.

Table 18 illustrates the index performance of the main exchanges across the region.

Over the three, nine and twelve-month all Exchange indices, except for that of the Eastern Caribbean Stock Exchange (ECSE) recorded improvements. For the three months, the Jamaica Stock Exchange (JSE) Market Index (11.78%) recorded the largest increase, followed by the Bermuda Stock Exchange’s (BSX) RG/BSX Index (5.57%) and the BSE Composite Index (5.34%). When extended to the nine and twelve months, these three Exchanges all recorded double digit increases in index performance. The

Trinidad and Tobago Stock Exchange (TTSE) Composite Index recorded increases of 2.65% and 7.33% for the nine and twelve months respectively while the ECSE Share Index recorded declines of 10.29% and 9.16% respectively.

As we look toward the fourth quarter of 2017 we are expecting improvements in market performance, however, we do not expect overall year on year activity for 2017 to outperform that of 2016.

The BSE held its fifth successful Corporate Governance and Accountability Conference (CGAC) on September 21st and 22nd, 2017 at the Hilton Barbados resort. The conference was well received and the BSE wishes to thank the attendees, presenters and sponsors for their continued support and looks forward to hosting another exceptional BSE CGAC in 2018.

We are also pleased to report that the BSE’s International Securities Market (ISM) has received its first Listing Application and is conducting the necessary due diligence required for the approval of the listing.

Table 18 - Regional Index Comparative Analysis Performance Region Exchange

Three

Dec 31 2016

% Change

5.34

13.08

14.23

Jamaica Stock Exchange Market Index

11.78

36.64

43.74

Trinidad And Tobago Composite Index

2.68

2.65

7.33

Eastern Caribbean Stock Exchange Share Index

2.57

-10.29

-9.16

Bermuda Stock Exchange RG/BSX Index

5.57

10.96

36.42

Barbados Stock Exchange Composite Index

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