bse 1st quarter report 2013

1st Quarter Report 2013

Overview

Overall trading volume increased by 15%, while trading value decreased by 19% for the 1st quarter of

2013. The Put-Through Market was the only market to record increases in trading activity; 687% in

terms of volume and 495% in terms of value. Regular Market activity fell by 2% in terms of volume

traded and by 33% in terms of value traded. On October 8th, 2012 the BSE ceased operation of the Odd-

Lot Market by instituting a threshold system for trades occurring in the Regular Market. The result of

this is that small trades below a set threshold would not affect the final price of a security in the Regular

Market. The total number of trades decreased by 36% from 452 in 2012 to 298 in 2013.

There were increases in all market indices when compared to their December 31st 2012 figures. The

Local and Composite Market Capitalization measures recorded minor decreases when compared to

their respective positions at the close of 2012. The Cross-Listed measures was the best performer for

both market measures recording increases of 2.84% and 2.57% for the index and market capitalization

measures respectively.

Takeover transactions for Republic Bank (Barbados) Limited continued into 2013. There were a total of

ten (10) trades recorded with a total trading volume of 1,279,356 shares and a total trading value of

$6,396,780.00. In the first quarter of 2012, there was only one (1) takeover transaction which saw

761,324 shares in ANSA McAL (Barbados) Limited trading with a total trading value of $8,945,557.00.

Table 1 – Year to date Statistics

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

2013 Volume 2012 Volume 2013 Value 2012 Value Volume Value

Regular 2,304,524 2,347,651 $ 9,394,932 $ 13,993,341 -2% -33%

Odd-Lot - 48,575 $ - $ 222,328 -100% -100%

Put - Through 535,156 67,960 $ 2,405,582 $ 404,146 687% 495%

Junior - - $ - $ - NA NA

Block Trade - - $ - $ - NA NA

Total 2,839,680 2,464,186 $ 11,800,514 $ 14,619,815 15% -19%

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 for the first quarter of 2013 when compared to the same

period in 2012. Trading volume decreased by 1.84% from 2,347,651 in 2012 to 2,304,524 in 2013;

whereas trading value decreased by 32.86%. However, during the period under review, there was a

14.68% increase in the number of trades occurring in the market and a 4.69% decrease in the number of

trading days.

A snapshot of the advance-decline ratio at the end of the 1st quarter of 2013 showed declines, with only

six securities advancing and seven declining versus seven securities advancing in price and eleven

declining at the 1st quarter close of 2012.

At the close of the first quarter of 2012 there was one significant transaction which resulted in a volume

of 761,324 shares in ANSA McAL (Barbados) Limited trading with a value of $8,945,557. In 2013

however, 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. Removing these significant transactions would have

resulted in a decrease in trading volume on the Regular Market of 35% and a decrease in trading value

of 41% for 2013 when compared to the closing figures, less the significant transactions, that took place

during the first quarter of 2012.

Table 2 – 1st

Quarter Regular Market Performance – Year on Year

31-Mar-13 31-Mar-12 % Change

Total Share Volume 2,304,524 2,347,651 -1.84%

Total Share Value 9,394,932 13,993,341 -32.86%

Average Daily Share Volume 37,779 36,682 2.99%

Average Daily Share Value $ 154,015 $ 218,646 -29.56%

Number of Trades 289 252 14.68%

Number of Trade Days 61 64 -4.69%

Average Share Price $ 5.97 $ 5.78 3.30%

Advance/Decline Ratio 6/7 7/11 N/A

Local Index 3,084.37 3,261.28 -5.42%

Cross – Listed Index 1,325.98 1,162.64 14.05%

Composite Market Index 738.76 725.94 1.77%

Local Market Capitalization 8,869,156,101 9,319,483,623 -4.83%

Cross-Listed Market Capitalization 2,214,570,569 1,987,204,618 11.44%

Composite Market Capitalization 11,103,526,670 11,314,638,241 -1.87%

Number of Listed Securities 28 26 7.69%


Goddard Enterprises Limited was the most actively traded security on the market accounting for 21% of

the number of trades occurring in the market. Sagicor Financial Corporation was the second most

actively traded security, accounting for 17% 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 2013

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

respectively. Republic Bank (Barbados) Limited was the top performer for both volume and value

traded. Caribbean Property Fund Limited 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

2013 2012 2013 2012

Company Volume Volume Value Value

REPUBLIC BANK (BARBADOS) LIMITED 1,279,356 - $ 6,396,780.00 $ -

CARIBBEAN PROPERTY FUND LIMITED 327,186 265,781 $ 261,648.80 $ 238,259.70

SAGICOR FINANCIAL CORPORATION 212,418 447,727 $ 453,869.10 $ 1,063,788.16

FIRSTCARIBBEAN INTERNATIONAL BANK 155,476 329,643 $ 470,919.10 $ 1,023,356.11

ONE CARIBBEAN MEDIA LIMITED 93,774 32,348 $ 442,820.74 $ 103,768.60


Table 4 – Top five traded companies by value

2013 2012 2013 2012

Company Value Value Volume Volume

REPUBLIC BANK (BARBADOS) LIMITED $ 6,396,780.00 $ - 1,279,356 -

GODDARD ENTERPRISES LIMITED $ 549,824.99 $ 1,523,556.00 90,808 253,926

FIRSTCARIBBEAN INTERNATIONAL BANK $ 470,919.10 $ 1,023,356.11 155,476 329,643

SAGICOR FINANCIAL CORPORATION $ 453,869.10 $ 1,063,788.16 212,418 447,727

ONE CARIBBEAN MEDIA LIMITED $ 442,820.74 $ 103,768.60 93,774 32,348

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 2013. The Put Through Market did, however, record increases of 687% in terms of volume and 495% in terms of value. Table 5 below illustrates the activity which occurred on this market as at March 31st, 2013.

Table 5: Put-through Market Activity - 1st

Quarter 2013

Company Volume Value

CABLE AND WIRELESS BARBADOS LIMITED 316,400 $ 1,582,000.00

BANKS HOLDINGS LIMITED 96,000 $ 278,400.00

CAVE SHEPHERD AND COMPANY LIMITED 96,000 $ 422,600.00

GODDARD ENTERPRISES LIMITED 16,921 $ 101,526.00

SAGICOR FINANCIAL CORPORATION 8,835 $ 18,456.06

INSURANCE CORPORATION OF BARBADOS LIMITED 1,000 $ 2,600.00

TOTAL 535,156 $ 2,405,582.06


Fixed Income Market

There were 51 trades recorded on this market with a total volume of 3,388,000 bonds traded as compared to the 36 trades and 3,489,500 bonds traded at the close of the first quarter of 2012. Table 6 below, gives details on each bond traded as at March 31st, 2013. Table 6: Fixed Income Market activity 1

st Quarter 2013

Security No. of Trades

Amount Traded

BARBADOS GOVERNMENT DEBENTURE 4.75% 2016 1 2,000










BARBADOS GOVERNMENT DEBENTURE 7% 2017 3 3,000

BARBADOS GOVERNMENT DEBENTURE 7% 2023 2 3,000




BARBADOS GOVERNMENT T/NOTE 4.25% 2013 2 2,000




BARBADOS GOVERNMENT T/NOTE 6% 2016 8 94,000

BARBADOS GOVERNMENT T/NOTE 6% 2017 1 1,000,000





BARBADOS GOVERNMENT T/NOTE 8% 2014 1 46,000

TOTALS 51 3,388,000


Index and Market Capitalization Movement A year on year comparison of the Index and Market Capitalization performance shows that both the Cross Listed and Composite indices experienced increases over the last 12 months. Performance of the cross listed securities showed improvement as two of the four securities listed - Neal and Massy Holdings Limited and One Caribbean Media Limited - experienced share price appreciation; Jamaica Money Market Brokers Limited traded firm while Trinidad Cement Limited did not trade. The Local Index registered the largest decline of 5.42% when compared to its position at the corresponding period in 2012 as twelve 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 capitalization figures illustrated in Table 8 below show improvements in the Cross Listed Market Capitalization figure which recorded the only increase of 11.44% due largely in part to a 50% increase in price for Jamaica Money Market Brokers Limited and a 61% increase in price of One Caribbean Media Limited.

Table 7 – Index Comparison Year on Year

Index 31-Mar-13 31-Mar-12 % Change

Local 3,084.37 3,261.28 -5.42%

Cross Listed 1,325.98 1,162.64 14.05%

Composite 738.76 725.94 1.77%

Table 8 – Market Capitalization comparison Year on Year

Market Capitalization 31-Mar-13 31-Mar-12 % Change

Local 8,869,156,100.67 9,319,483,622.90 -4.83%

Cross Listed 2,214,570,568.98 1,987,204,617.63 11.44%

Composite 11,103,526,669.65 11,314,638,241 -1.87%

Figure 2 - Index Movement March 2012 to March 2013


The indices and market capitalization measures for the 1st quarter of 2013 showed mixed results as all

Index measures recorded marginal increases over their respective December 2012 figures while only the

Cross-Listed Market Capitalization measure showed improvement; the decreases experienced for the

Local and Composite Market Capitalization measures were nominal.

Table 9 – Index Comparison 1st

Quarter

Index 31-Mar-13 31-Dec-12 % Change

Local 3,084.37 3,082.38 0.06%

Cross Listed 1,325.98 1,289.35 2.84%

Composite 738.76 730.04 1.19%

Table 10 – Market Capitalization Comparison 1st

Quarter

Market Capitalization 31-Mar-13 31-Dec-12 % Change

Local 8,869,156,101 8,957,484,391 -0.99%

Cross Listed 2,214,570,569 2,159,097,185 2.57%

Composite 11,103,526,670 11,124,381,576 -0.19%

Company Activity Comparative Report

For the first quarter of 2013 six (6) securities advanced, seven (7) declined, eight (8) remained

unchanged and seven (7) did not trade; one of which was suspended. This is compared to five (5)

securities advanced, four (4) declined and seven (7) remained unchanged and ten (10) did not trade; one

of which was suspended for the corresponding period in 2012.

Goddard Enterprises Limited was the top performer for the quarter climbing 12.96% from $5.40 to

$6.10. Sagicor Financial Corporation Pref 6.5% and BICO industries Limited had the next two largest

increases climbing 8.65% and 6.25% respectively.

Almond Resorts Incorporated registered the largest decline of the quarter as its share price fell by 20%

from $0.50 to $0.40. No other company registered a decline in excess of 10% for the 1st quarter of 2013.


Table 11 - 1st

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

1st Quarter 2013

1st Quarter 2013

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Mar 31 2013

December 31 2012

Ansa Mcal (Barbados) Limited 1,850 $ 21,738 11.75 11.75 0.00%

Almond Resorts Inc. 5,000 $ 2,000 0.40 0.50 -20.00%

Bico Industries Ltd. 3,998 $ 6,197 1.70 1.60 6.25%

Barbados Dairy Industries Ltd. 500 $ 1,500 3.00 3.00 0.00%

Barbados Farms Ltd. 4,361 $ 4,361 1.00 1.00 0.00%

Republic Bank Barbados Limited 1,279,356 $ 6,396,780 5.00 5.00 0.00%

Banks Holdings Ltd. 12,041 $ 34,944 2.90 3.00 -3.33%

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

Fortress Caribbean Property Fund 327,186 $ 261,649 0.80 0.80 0.00%

Cave Shepherd and Co. Ltd. 2,468 $ 10,548 4.35 4.68 -7.05%

Cable and Wireless Barbados Ltd 13,669 $ 62,760 5.00 5.00 0.00%

FirstCaribbean International Bank 155,476 $ 470,919 2.98 3.05 -2.30%

Goddard Enterprises Ltd. 90,808 $ 549,825 6.10 5.40 12.96%

Insurance Corporation Of Barbados Ltd. 39,316 $ 101,123 2.55 2.60 -1.92%

Jamaica Money Market Brokers Limited 11,340 $ 2,043 0.15 0.15 0.00%

Light and Power Holdings Ltd. 3,482 $ 89,487 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 Ltd. 24,507 $ 381,082 14.60 14.05 3.91%

One Caribbean Media Limited 93,774 $ 442,821 4.76 4.75 0.21%

Sagicor Financial Corporation 6.5% Pref 15,200 $ 34,352 2.26 2.08 8.65%

Sagicor Financial Corporation 212,418 $ 453,869 2.15 2.23 -3.59%

Trinidad Cement Ltd. 0 $ - 0.80 0.80 0.00%

West India Biscuit Co. Ltd. 2,374 $ 23,787 10.02 10.01 0.10%

The West Indies Rum Distilleries Ltd. 5,400 $ 43,146 7.99 8.00 -0.12%

Royal Fidelity TIGRS A Fund 0 $ - 10.50 10.50 0.00%

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



2,304,524 $ 9,394,932


Conclusion

The first quarter of 2013, much like the 1st quarter of 2012, can only be described as challenging. The

increases in general trading volumes can be attributed to the large volumes associated with the

takeover transactions and Put Through market activity. However, the prices at which these and other

trades occurred, were not sufficient to cause an increase in the value of shares traded in the 1st quarter

of 2013.

In the recent review of Barbados' economy after the first three months of 2013, the Central Bank of

Barbados has reported that the local economy has contracted by 0.4%. Despite having lower domestic

prices and 19 weeks of foreign reserves to cover imports, all sectors of the economy registered declines.

The economic downturn in the 1st quarter has been described one of the worse since the onset of the

global economic recession.

At the BSE, we are well aware that activities in the wider marketplace tend to be mirrored in the local

Capital Market. However, we maintain that while we must be prepared for any negative impacts, we

must, at the same time, continue to evolve and position ourselves in such a way that we are able to take

advantage of any opportunities that may become available in the future. Thus, we continue to press

ahead with our International Securities Market (ISM) initiative which would facilitate the listing and

trading of foreign securities of companies domiciled abroad that are seeking to establish a physical

presence in Barbados, as well as securities owned by International Business Companies (IBCs) that are

currently operating on the island. We hosted a breakfast meeting to discuss the Rules of the ISM and

said rules are currently before the Financial Services Commission, our Regulator, pending approval. Once

approved, the ISM will be marketed globally and our intention is to attract as many IBCs to list their

securities while providing Barbados with yet another tool to attract more foreign investment to our

shores.

bse 1st quarter report 2013

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