B U S I N E SS T R I N I DA D A N D TO B AG O FAST FAC TS G U I D E
Stock Market Review 2015
Ravi Kurjah Senior Analyst, Research & Analytics, First Citizens Investment Services
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n 2015, the Trinidad and Tobago Stock Exchange recorded mixed results across all sectors. The Composite Index advanced by 11.39 points or a marginal 0.99% over 2014 levels to close at 1,162.30. Conversely, the All T&T index declined by 34.69 points or 1.75% when compared to 2014, to close at 1,948.50, as seen in Figure 1. However, the Cross Listed index advanced by 7.79 points or a significant 18.67% over 2014 values to close at 49.51. The best performing sector in 2015 was Manufacturing II, which rose 45.81%, largely due to Trinidad Cement Limited’s (TCL) share price growth. Also, the Manufacturing I sector index grew 3.48%, driven by National Flour Mills’ (NFM) performance. Unlike 2014’s positive results, the performance of the Conglomerates sector retreated in 2015, falling 2.51%, attributed mainly to Massy Holdings Limited (MASSY).
Major Developments in 2015 • In January 2015, the Sagicor Group approved a recommendation from the Management to prepare a plan to relocate its Registered Office from Barbados to another jurisdiction. • In February, The Board of Trinidad Cement (TCL) passed a resolution to raise a maximum of TTD362 million in new capital through a rights issue of 124,882,568 new shares at a price of TTD2.90 a share. • In March, Ghana’s Securities and Exchange Commission (SEC) fined Republic Bank for breaching that country’s takeover code. • In April, Jamaica Money Market Brokers Limited (JMMB) delisted and JMMB Group Limited (JMMBGL) was listed. • In May, CIBC sold its stake in Butterfield, Bermuda’s oldest bank. • In June, GraceKennedy Limited divested shares in Subsidiary Hardware & Lumber. • In August, Sagicor entered into an agreement to acquire a convention hotel in Orlando, Florida, which is affiliated with a major hotel franchise. • The T&T National Gas Ltd (TTNGL) traded TTD200,000,000 worth of shares in just one week after the launch of its Initial Public Offering (IPO) on October 19. • In December, Republic Bank announced the formation of its holding company, Republic Financial Holdings Limited (RFHL). Trading Activity Market activity in 2015 declined 14.63% when compared to the previous year. A total of 78,163,210 shares crossed the floor in 2015 compared to 91,559,129 shares in 2014. Overall market activity resulted from trading in 38 stocks of which 20 advanced, 13 declined and 5 traded firm. CLICO Investment Fund was the volume leader with 15,324,908 units, 19.61% of total market volume traded or TTD346,367,512,87 in traded value, followed by Trinidad Cement Limited with 13,801,014 (17.66%) or TTD40,612,595 and Trinidad and Tobago NGL Limited with 12,329,132 units (15.77%) or TTD296,227,512 in traded value.
Advances and Declines National Flour Mills (NFM) was the top performer for 2015, increasing a noteworthy 134.78% or TTD1.55 to close the year at TTD2.70. The second best performing stock was National Commercial Bank of Jamaica (NCBJ), which recorded a substantial 82.61% improvement or TTD0.95 to end the year at TTD2.10. The next best performing stock was TCL, up 59.60% or TTD1.49 to close 2015 at TTD3.99. Table 1 Top 5 Advances 2015 Change Closing Price 2015 (TTD) (TTD) Change % NFM 1.55 2.70 134.78 NCBJ 0.95 2.10 82.61 TCL 1.49 3.99 59.60 JMMBGL 0.12 0.55 27.91 GKC 0.40 4.05 10.96 Source: Trinidad and Tobago Stock Exchange, First Citizens Research & Analytics
One Caribbean Media Limited (OCM) was the worst performing stock for 2015, falling 12.00% to TTD22.00, Massy Holdings Limited (MASSY) followed, down 9.96% or TTD6.80 to close at TTD61.45. The third worst performing stock for 2015 was Republic Financial Holdings Limited (RFHL) with a decrease of 6.52% or TTD7.81 to TTD11.93. Table 2 Top 5 Declines 2015 Change Closing Price 2015 (TTD) (TTD) Change % OCM -3.00 22.00 -12.00 MASSY -6.80 61.45 -9.96 RFHL -7.81 111.93 -6.52 NEL -1.05 16.37 -6.03 FIRST -2.06 35.00 -5.56 Source: Trinidad and Tobago Stock Exchange, First Citizens Research & Analytics
The Trinidad and Tobago Stock Exchange The TTSE was established under the provisions of the Securities Industry Act 1981, which was later repealed and replaced by the Securities Industry Act 1995. There are currently 29 first tier stocks listed on the Trinidad and Tobago stock exchange, one-second tier, two TTD preference shares, one USD preference share and five mutual fund shares. Locally there are six (6) licensed stockbrokers operating within Trinidad and Tobago, including First Citizens Brokerage and Advisory Services. Before investing in the stock market, consult a stockbroker, who acts as a liaison between the investor and the stock exchange. www.firstcitizenstt.com
DISCLAIMER This report has been prepared by First Citizens Investment Services Limited, a subsidiary of First Citizens Bank Limited. It is provided for informational purposes only and without any obligation, whether contractual or otherwise. All information contained herein has been obtained from sources that First Citizens Investment Services believes to be accurate and reliable. All opinions and estimates constitute the author’s judgment as at the date of the report. First Citizens Investment Services does not warrant the accuracy, timeliness, completeness of the information given or the assessments made. Opinions expressed may change without notice. This report does not constitute an offer or solicitation to buy or sell any securities discussed herein. The securities discussed in this report may not be suitable to all investors, therefore Investors wishing to purchase any of the securities mentioned should consult an investment adviser.
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