bse 1st quarter report 2012

1st Quarter Report 2012

Overview

Overall trading volume decreased by 78%, while trading value decreased by 93% for the 1st quarter of

2012. The Regular and Put-Through Markets were the two markets to register decreases in trading

activity. Regular Market activity fell by 79% in terms of volume and by 94% in value and the Put-Through

Market experienced a decreases of 35% and 29% in terms of volume and value respectively. Odd-Lot

Market activity showed minor increases of 2% for volume and 3% for value while the total number of

trades increased by 1.35% from 446 in 2011 to 452 in 2012.

There were also increases in all market indices with the exception of the local index which recorded a

minor decrease of 0.18% when compared to its December 31st 2011 figure. All market capitalization

measures recorded increases when compared to their respective positions at the close of 2011.

It must be noted, however, that the decline in market activity can be attributed to a decrease in the

number of significant transactions on the Board of the BSE for the first quarter of 2012. To date there

has only been one significant transaction for ANSA McAL (Barbados) Limited. During the first quarter of

2011 AMCL Holdings Limited commenced the purchase of all remaining shares of ANSA McAL (Barbados)

Limited while EMERA (Barbados) Holdings No. 2 Incorporated also commenced similar action to

purchase all outstanding common shares of Light and Power Holdings Limited; there were a total of 12

significant transactions recorded in the first quarter of 2011.

Table 1 – Year to date Statistics

Market Year-to-Date Year-to-Date Year-to-Date Year-to-Date % Change % Change

2012 Volume 2011 Volume 2012 Value 2011 Value Volume Value

Regular 2,347,651 11,092,623 $ 13,993,341 $ 219,324,630 -79% -94%

Odd-Lot 48,575 47,435 $ 222,328 $ 214,863 2% 3%

Put - Through 67,960 104,030 $ 404,146 $ 569,493 -35% -29%

Junior - - $ - $ - NA NA

Block Trade - - $ - $ - NA NA

Total 2,464,186 11,244,088 $ 14,619,815 $ 220,108,986 -78% -93%

B S E 1 s t Q u a r t e r R e p o r t 2 0 1 2 P a g e | 2

Regular Market

Regular Market volume and value decreased significantly for the first quarter of 2012 when compared to

the same period in 2011. Trading volume decreased by 78.84% from 11,092,623 in 2011 to 2,347,651 in

2012; whereas trading value decreased by 93.62%. During the period under review there was also a

9.35% decrease in the number of trades occurring in the market and a 1.59% increase in the number of

trading days.

A snapshot of the advance-decline ratio at the end of the 1st quarter of 2012 showed declines, with only

5 securities advancing and 4 declining versus 8 securities advancing in price and 4 declining at the 1st

quarter close of 2011.

As mentioned previously, the two takeover transactions which occurred had significant impact on the

activity in the Regular Market in 2011. These transactions resulted in the trading of a total of 9,749,238

shares at a value of $214,008,578.85. At the close of the first quarter of 2012 this single significant

transaction resulted in volume of 761,324 shares in ANSA McAL (Barbados) Limited trading with a value

of $8,945,557.00 Removing these significant transactions would have resulted in an increase in trading

volume on the Regular Market of 18% but a decrease in trading value of 5% for 2012 when compared to

the closing figures less the significant transactions that took place during the first quarter of 2011.

Table 2 – 1st

Quarter Regular Market Performance – Year on Year

31-Mar-12 31-Mar-11 % Change

Total Share Volume 2,347,651 11,092,623 -78.84%

Total Share Value 13,993,341 219,324,630 -93.62%

Average Daily Share Volume 36,682 176,073 -79.17%

Average Daily Share Value $ 218,646 $ 3,481,343 -93.72%

Number of Trades 252 278 -9.35%

Number of Trade Days 64 63 1.59%

Average Share Price $ 4.99 $ 5.21 -4.35%

Advance/Decline Ratio 5/4 8/4 N/A

Local Index 3,261.28 3,358.59 -2.90%

Cross – Listed Index 1,162.64 1,145.29 1.51%

Composite Market Index 725.94 735.60 -1.31%

Local Market Capitalization 9,319,483,623 9,247,207,120 0.78%

Cross-Listed Market Capitalization 1,987,204,618 1,896,785,877 4.77%

Composite Market Capitalization 11,314,638,241 11,151,858,997 1.46%

Number of Listed Securities 26 25 4.00%


Sagicor Financial Corporation was once again the most actively traded security on the market accounting

for 28% of the number of trades occurring in the market. FirstCaribbean International Bank Limited was

the second most actively traded security, accounting for 18% 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 2011

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

respectively. ANSA McAL (Barbados) Limited was the top performer for both volume and value traded.

Sagicor Financial Corporation was second in terms of volume traded while Goddard Enterprises Limited

was second in terms of value traded.

Table 3 – Top five traded companies by volume

2012 2011 2012 2011

Company Volume Volume Value Value

ANSA MCAL (BARBADOS) LIMITED 761,324 2,619,845 $ 8,945,557 $ 30,783,179

SAGICOR FINANCIAL CORPORATION 447,727 252,200 $ 1,063,788 $ 765,172

FIRSTCARIBBEAN INTERNATIONAL BANK 329,643 295463 $ 1,023,356 $ 913,025

FORTRESS CARIBBEAN PROPERTY FUND 265,781 156,661 $ 238,260 $ 179,435

GODDARD ENTERPRISES LIMITED 253,926 167,300 $ 1,523,556 $ 1,002,737


Table 4 – Top five traded companies by value

2012 2011 2012 2011

Company Value Value Volume Volume

ANSA MCAL (BARBADOS) LIMITED $ 8,945,557 $30,783,179 761,324 2,619,845

GODDARD ENTERPRISES LIMITED $ 1,523,556 $ 1,002,737 253,926 167,300

SAGICOR FINANCIAL CORPORATION 6.5% PREF $ 1,063,788 $ 765,172 447,727 252200

FIRSTCARIBBEAN INTERNATIONAL BANK $ 1,023,356 $ 913,025 329,643 295,463

BANKS HOLDINGS LIMITED $ 292,275 $ 210,885 87,585 53,954

Odd-Lot Market

There was a 2% increase in trading volume and an associated 3% increase in value traded for the first

quarter of 2012 on the Odd-Lot Market. The number of trades occurring on this market also increased

by 15% from 166 in 2011 to 191 in 2012.

Table 5 and Table 6 show the top traded companies for the quarter based on volume and value

respectively. Sagicor Financial Corporation was again the volume leader accounting for 31% of the total

volume traded; up from 30% at the end of the 1st quarter in 2011. Goddard Enterprises Limited was the

value leader, accounting for 24% of the total value; up from 10% in 2011. Sagicor Financial Corporation

was also the most actively traded security accounting for 26% of the total activity in terms of the

number of trades.

Table 5 – Top five traded companies by volume

2012 2011 2012 2011

Company Volume Volume Value Value

SAGICOR FINANCIAL CORPORATION 15,067 14,137 $ 36,621 $ 42,831

GODDARD ENTERPRISES LIMITED 8,717 3,607 $ 52,302 $ 21,285

CABLE & WIRELESS (BARBADOS) LIMITED 8,375 5,969 $ 44,775 $ 32,194

INSURANCE CORPORATION OF BARBADOS LIMITED 4,478 3,243 $ 12,038 $ 9,886

FIRSTCARIBBEAN INTERNATIONAL BANK 3,165 3,425 $ 9,887 $ 10,103

Table 6 – Top five traded companies by value

2012 2011 2012 2011

Company Value Value Volume Volume

GODDARD ENTERPRISES LIMITED $52,302 $ 21,285 8,717 3,607

CABLE & WIRELESS (BARBADOS) LIMITED $44,775 $ 32,194 8,375 5,969

SAGICOR FINANCIAL CORPORATION $36,621 $ 42,831 15,067 14,137

NEAL AND MASSY HOLDINGS LIMITED $33,850 $ 51,836 2,489 3,887

LIGHT & POWER HOLDINGS LIMITED $17,193 $ 5,140 669 200


Junior Market, Block Trade Market & Put Through Market

There was no trading activity recorded for the Junior or Block Trade Markets for the 1st Quarter of 2012. The Put Through Market did, however, record declines of 35% in terms of volume and 29% in terms of value. Table 7 below illustrates the activity which occurred on this market as at March 31st, 2012.

Table 7: Put-through Market Activity - 1st

Quarter 2012

Company Volume Value

Goddard Enterprises Limited 65,867 $ 398,202.00

Sagicor Financial Corporation 2,093 $ 5,944.12

Fixed Income Market

There were 36 trades recorded on this market with a total volume of 3,489,500 bonds traded as compared to the 35 trades and 2,475,000 bonds traded at the close of the first quarter of 2011.. Table 8 below, gives details on each bond traded as at March 31st, 2012. Table 8: Fixed Income Market activity 1

st Quarter 2012

Security No. of Trades

Amount Traded

Barbados Government Debenture 4.75% 2016 2 2,000




Barbados Government Debenture 6.625% 2020 3 2,800,000


Barbados Government Debenture 7% 2017 2 510,000





Barbados Government T/Note 4.25% 2013 1 3,000

Barbados Government T/Note 6% 2016 5 8,000






Barbados Government T/Note 8% 2014 1 1,000

Total 36 3,489,500


Index and Market Capitalization Movement A year on year comparison of the Index and Market Capitalization performance shows that the Cross Listed index was the only one to experience increases over the last 12 months. Performance of the cross listed securities showed improvement as three of the four securities listed - Jamaica Money Market Brokers Limited, Neal and Massy Holdings Limited and One Caribbean Media Limited - experienced share price appreciation; Trinidad Cement Limited did not trade. The Local Index registered the largest decline of 2.90% when compared to its position at the corresponding period in 2011 as twelve securities registered declines in share price over the 12 month period. Figure 2 - Index Comparison Year on Year illustrates the trend of the indices over the period under consideration. The market capitalization figures show improvements across the board with the Cross Listed Market Capitalization figure showing the highest increase of 4.77%. The minor increase in Local Market Capitalization performance can be attributed to the listing of 120 million Sagicor Financial Corporation 6.5% Preference shares at $2.00 in July 2011.

Table 9 – Index Comparison Year on Year

Index 31-Mar-12 31-Mar-11 % Change

Local 3,261.28 3,358.59 -2.90%

Cross Listed 1,162.64 1,145.29 1.51%

Composite 725.94 735.60 -1.31%

Table 10 – Market Capitalization comparison Year on Year

Market Capitalization 31-Mar-12 31-Mar-11 % Change

Local 9,319,483,622.90 9,247,207,119.80 0.78%

Cross Listed 1,987,204,617.63 1,896,785,877.30 4.77%

Composite 11,314,638,240.53 11,151,858,997.10 1.46%

Figure 2 - Index Movement March 2011 to March 2012


The indices and market capitalization measures for the 1st quarter of 2012 showed similar results. Local

Index performance recorded declines of 0.18%, however, the all market capitalization measures showed

improvements over their respective December 2011 figures.

Table 11 – Index Comparison 1st

Quarter

Index 31-Mar-12 31-Dec-11 % Change

Local 3,261.28 3,267.18 -0.18%

Cross Listed 1,162.64 1,142.23 1.79%

Composite 725.94 722.07 0.54%

Table 12 – Market Capitalization Comparison 1st

Quarter

Market Capitalization 31-Mar-12 31-Dec-11 % Change

Local 9,319,483,623 9,127,101,474 2.11%

Cross Listed 1,987,204,618 1,896,819,202 4.77%

Composite 11,314,638,241 11,031,870,677 2.56%

Company Activity Comparative Report

For the first quarter of 2012 five (5) securities advanced, four (4) declined and seven (7) remained

unchanged, ten (10) did not trade; one of which was suspended. This is compared to eight (8) securities

advanced, four (4) declined and three (3) remained unchanged, ten (10) did not trade and one (1) was

delisted for the corresponding period in 2011.

Jamaica Money Market Brokers Limited was the top performer for the quarter climbing 50% from $0.10

to $0.15. One Caribbean Media Limited and Cave Shepherd and Company Limited had the next two

largest increases climbing 8.81% and 8.7% respectively.

Barbados Farms Limited registered the largest decline of the quarter as its share price fell by 20% from

$1.50 to $1.20. Sagicor Financial Corporation was the only other company to register a decline in excess

of 10% for the quarter with 19.86%.


Table 13 - 1st

Quarter Trading Activity By Company (Regular and Junior market only)

1st Quarter 2012

1st Quarter 2012

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Mar 31 2012 December 31 2011

ANSA McAL (Barbados) Limited 761,324 $ 8,945,557 11.75 11.75 0.00%

Almond Resorts Incorporated 0 $ - 1.25 1.25 0.00%

BICO Industries Limited 1,299 $ 2,416 1.86 1.86 0.00%

Barbados Dairy Industries Limited 0 $ - 5.29 5.29 0.00%

Barbados Farms Limited 14,282 $ 17,138 1.20 1.50 -20.00%

Barbados National Bank Incorporated 0 $ - 5.50 5.50 0.00%

Banks Holdings Limited 87,585 $ 292,275 3.28 3.29 -0.30%

Barbados Shipping & Trading Co. Limited 0 $ - 7.58 7.58 0.00%

Fortress Caribbean Property Fund 265,781 $ 238,260 0.90 1.00 -10.00%

Cave Shepherd and Company Limited 19,100 $ 92,850 5.00 4.60 8.70%

Cable and Wireless Barbados Limited 46,875 $ 250,473 5.34 5.34 0.00%

FirstCaribbean International Bank 329,643 $ 1,023,356 3.13 2.90 7.93%

Goddard Enterprises Limited 253,926 $ 1,523,556 6.00 6.00 0.00%

Insurance Corporation of Barbados Ltd. 67,479 $ 181,842 2.69 2.50 7.60%

Jamaica Money Market Brokers Limited 1,000 $ 150 0.15 0.10 50.00%

Light and Power Holdings Limited 1,560 $ 40,092 25.70 25.70 0.00%

Light And Power Holdings Ltd 5.5% Pref 0 $ - 3.11 3.11 0.00%

Neal and Massey Holdings Limited 15,722 $ 213,819 13.60 13.60 0.00%

One Caribbean Media Limited 32,348 $ 103,769 3.21 2.95 8.81%

Sagicor Financial Corporation 6.5% Pref 2,000 $ 4,000 2.00 2.00 0.00%

Sagicor Financial Corporation 447,727 $ 1,063,788 2.30 2.87 -19.86%

Trinidad Cement Limited 0 $ - 0.80 0.80 0.00%

West India Biscuit Company Limited 0 $ - 10.01 10.01 0.00%

The West Indies Rum Distilleries Limited 0 $ - 8.00 8.00 0.00%

Royal Fidelity TIGRS A Fund 0 $ - 10.75 10.75 0.00%

Royal Fidelity TIGRS A1 Fund 0 $ - 10.00 10.00 0.00%


Conclusion

The first quarter of 2012 can only be described as challenging. The reduction in general trading activity

can be attributed to the absence of the large volumes associated with the takeover transactions which

occurred during the first quarter of 2011. Looking towards the second quarter, news of the impending

delisting Barbados Dairy industries and also the closure and delisting of Almond Resorts Incorporated,

though disappointing, serve as reminders of the harsh realities and challenges being faced, not only by

individuals but businesses as well, as the negative effects global economic recession persists.

Challenges, however, can be overcome and thus the BSE remains committed to the development of the

capital market in Barbados. We will press on with our initiative to further develop our Junior Market to

give Small to Medium Enterprises (SMEs) an additional vehicle to raise capital to improve their

operations. We will also seek to establish an International Securities Market here in Barbados. We are

also focusing our efforts on the establishment of a structured market for the trading of commercial

paper and also the possibility of introducing new instruments to our market.

bse 1st quarter report 2012

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