bse 2014 year-end report

Report

2014 End of Year

8th Avenue Belleville, St. Michael BB11114, BarbadosT: (246) 436-9871/2 | F: (246) 429-8942 | www.bse.com.bb

2014 Year End Report

The following report reviews the overall performance of the companies listed on the Barbados Stock Exchange for the period January 1, 2014 to December 31, 2014 inclusive.

Additionally, in an effort to provide greater detail on the market performance, fourth quarter information has been included. General discussion was also given to the overall economic situation of the country and its impact on the general performance of the market.

The report has been structured as follows:

• OverallPerformance• EconomicFactors• TradingactivitybyMarket• IndicesandMarketCapitalization• Advancers/Declinersfor2014• HistoricalCompanyTradingstatistics• MarketEvents• TheRegulatoryRoundup• ConcludingRemarks

3

Overall Performance

The year ending December 31, 2014 proved to be another challenging year for the Barbados Stock Exchange Inc (BSE). Overall trading volume and value fell by 67% and 72% respectively. All markets recorded declines and there was no activity on the Junior and Block Trade Markets. There was a minor improvement in the total number of trades occurring, however, this increased activity was still being severely affected by contracting share prices. The Bond Market also experienced small improvements in the number of trades occurring but saw a reduction in the total face value traded during 2014. There were no extraordinary transactions occurring in 2014. Table 1 below illustrates all activity occurring on the board of the BSE for the year ended December 31, 2014.

Table 1 - Trading Activity Comparison by Market

1 See Market Events 2014 below.

Market December December December December % Change % Change

2014 Volume 2013 Volume 2014 Value 2013 Value Volume Value

Regular 5,734,749 6,448,758 $ 18,124,650 $ 22,474,461 -11% -19%

Put Through 1,629,561 2,959,128 $ 3,859,712 $ 17,134,360 -45% -77%

Junior - 7,000 $ - $ 70,000 NA NA

Block Trade - 12,907,292 $ - $ 38,076,511 NA NA

Total 7,364,310 22,322,178 $ 21,984,362 $ 77,755,333 -67% -72%

There was one delisting from the board of the BSE; Barbados Shipping and Traded Company Limited was the sole security exiting the board during 2014. Three companies underwent rebranding exercises; Almond Resorts Incorporated was renamed ABV Investments Incorporated, Neal and Massy Holdings Limited changed its name to Massy Holdings Limited and Light and Power Holdings Limited is now Emera (Caribbean) Incorporated1.

Market indices showed mixed results in 2014 when compared to the closing figures for 2013. At year-end, the Cross-listed Index was the only measure to record an increase of 14.78%. The Local and Composite indices, however, had fallen by 28.65% and 17.45% respectively, below their 2013 year-end figures. The improved Cross-Listed Index performance was due primarily to the increase in the traded price of both Massy Holdings Limited and One Caribbean Media Limited. These two securities experienced double digit increases in share price by the close of 2014, over their December 31, 2013 figures. The BSE Market Capitalization measures performed similarly with the Cross-Listed Market Cap recording increase of 14.84%, and the Local and Composite Market Cap measures recording declines of 32.9% and 21.6% respectively. It should be noted that the declining Local Market Cap performance was attributed primarily to the de-listing of Barbados Shipping and Trading Company Limited and a 24.17% decrease in the price of the Exchange’s largest issuer - FirstCaribbean International Bank.

3

4

MarketNumber of

SharesNumber of

SharesMarket Value Market Value Number of

Transactions Number of

Transactions

Quarter 2014 2013 2014 2013 2014 2013

I 2,096,844 2,839,680 $ 6,485,537 $ 11,800,514 370 298

II 1,705,040 1,740,158 $ 5,242,080 $ 7,939,745 281 297

III 2,319,643 1,078,955 $ 3,696,961 $ 2,846,227 395 267

IV 1,242,783 16,663,385 $ 6,559,784 $ 55,168,847 234 332

Total 7,364,310 22,322,178 $ 21,984,362 $ 77,755,333 1,280 1,194

Table 2 - Trading Statistics Comparison 2014 - 2013

Table 2 below illustrates the Trading Statistics Comparison 2014 - 2013. Quarters I and III for 2014 were the most active in terms of volume traded due to heavy activity on the Put Through Market while Quarters I, II and IV were most active in terms of value traded.

There was a 7.2% increase in the number of trades occurring in 2014 when compared to 2013. There were 1,280 trades in 2014 as compared to 1,194 for 2013. Figure 1: Total Trade Frequency Comparison, illustrates graphically how the trade frequency has varied between 2014 and 2013.

Figure 1 - Total Trade Frequency Comparison

Jan

66 152 152 83 101 97

118 104 76 158 42 97

2014

2013

Feb Mar Apr May Jun

No.

of T

rade

s

160

140

120

100

80

60

40

20

0Jul Aug Sept

152 120 123

76 96 95

Oct Nov Dec

78 77 79

116 93 123

BSE Total Trade Frequency Comparison

5

As illustrated in Table 3 below, there was a decrease in both the volume and value traded for the fourth quarter of 2014 when compared to the corresponding period in 2013. The Regular Market showed promise despite recording a decrease of 33% in terms of volume, the value traded was 37% higher than that traded in the corresponding period in 2013. The Put Through market2 recorded a substantial decrease in activity, 97% in terms of both volume and value, while there was no activity on the Junior Market or the Block Trade Market3 to match both Markets’ performance during the 4th Quarter of 2013.

For the 4th quarter, all market measures saw improved performance. The Local and Cross-listed Index measures recorded increases of 0.02% and 1.78% respectively resulting in a minor 0.65% increase in the Composite Index measure. Similarly, the Local and Cross-listed Market Cap measures recorded increases of 0.02% and 1.84% respectively which resulted in an improvement of the Composite Market Cap of 0.64%.

2 On December 6, 2013 a Put Through transaction occurred resulting in 1,995,967 shares in Goddard Enterprises Limited trading at $6.25.3 On Tuesday October 22, 2013 a Block Trade transaction occurred resulting in 12,907,292 shares in Banks Holdings Limited trading at $2.95.

MarketFourth Quarter

Fourth Quarter

Third QuarterFourth Quarter

% Change % Change

2014 Volume 2013 Volume 2014 Value 2013 Value Volume Value

Regular 1,174,383 1,742,315 $ 6,136,264 $ 4,491,422 -33% 37%

Put Through 68,400 2,006,778 $ 423,520 $ 12,530,914 -97% -97%

Junior - 7,000 $ - $ 70,000 NA NA

Block Trade - 12,907,292 $ - $ 38,076,511 NA NA

Total 1,242,783 16,663,385 $ 6,559,784 $ 55,168,847 -93% -88%

Table 3 - Fourth Quarter Trading Activity Comparison

6

Economic Factors

This segment of the report was compiled from the Analysis of Barbados’ Current Economic Performance dated December 2014 and published by the Central Bank of Barbados (CBB).

In its report the CBB estimated that overall economic activity would improve by 0.3% in 2014. Improvements were attributed to the expansion in activity in the Construction sector, estimated at 1%, due primarily to the investment in tourism related projects to the tune of approximately $152 million. Expansion in Construction and an increased demand for export for quarrying products resulted in 21% growth in the mining and quarrying industries. Tourism value added has experienced growth (1% est.) as well with long-stay arrivals experiencing a similar increase in growth. Tourist arrivals increased by 10% due to increased airlift from the UK market, however, arrivals from the US, Canada, Trinidad & Tobago and CARICOM markets all experienced declines. While noting that the 12-month moving average rate of inflation had slowed to 1.7% at the close of October 2014, they also stated that the average annual rate of employment had rose from 11.2% as at September 30, 2013 to 12.5% at the close of September 2014. The increase was a result of job losses attributed to Government’s fiscal consolidation program.

In reference to the fiscal consolidation measures instituted over the past 18 months, the CBB noted that “foreign reserve movements in 2014 reverted to the normal pattern observed in 2010, 2011 and 2012.” The stabilization in foreign reserves is very positive and at December 31, 2014 reserves stood at $1,052 million or 14.5 weeks of imports. Savings from the consolidation exercise have been estimated at $181 million or 2.1% of GDP. Receipts from the Consolidation Tax ($20 mil), Municipal Solid Waste Tax ($39 mil) and Asset Tax ($14 mil) totaled $73 million while marked savings were recorded for the expenditure on wages and salaries and grants to public institutions; there were $53 million and $55 million respectively.

At the close of the third quarter, the total revenue collected was estimated to be $95 million higher than projected. The CBB noted that “...increases in corporate taxes ($15 million), VAT ($6 million), excises ($7 million) and import duties ($7 million)” were recorded.

A reduction in the level of food and beverage imports as well as declining intermediate goods imports resulted in the reduction of Retained Imports of approximately 0.4%. There was also an estimated 5% reduction in fuel imports; it should be noted that fuel prices also declined by 14% after July 2014. Electrical Components and Chemical exports recorded increases of 27% and 9% respectively while Rum exports declined by 13% the net effect was a 4% increase in the level of Domestic exports.

The CBB noted that “the revised fiscal target deficit of 7.2% of GDP for Fiscal Year 2014/15 can be achieved, so long as total supplementaries do not raise expenditure by more than $65 million...”. When compared to its December 2013 figure ($203 million), the primary deficit - the fiscal deficit net of interest payments, improved to $7 million. While end of year net public sector debt to GDP was estimated at 73%, the CBB noted “Barbados’ debt level is not out of line with many industrialised countries, such as Italy, Ireland, the US and Singapore, which are more highly rated by credit rating agencies.”

The CBB has proposed economic growth of approximately 2% for 2015. This projected growth is based on expected activity in both “tourism and construction activity, and the spin-off effects to wholesale, retail and business services sectors”.

7

Trading Activity by Market

Regular

There was a decline in Regular Market performance for 2014 when compared to its performance in 2013. Decreases of 11% and 19% were registered in both trading volume and value respectively. Table 4 below, illustrates a year on year statistical comparison of Regular Market activity for the reporting period. Decreases were seen across the board as the Average Share Volume, Value, Share Price and Number of Trades fell below their respective December 31, 2013 figures.

Table 4 - Regular Market Statistical Comparison

Regular Market Year on Year Comparison December 31, 2014 December 31, 2013 % ChangeTotal Share Volume 5,734,749 6,448,758 -11.07%Total Share Value 18,124,650 22,474,461 -19.35%Average Daily Share Volume 23,124 25,899 -10.71%Average Daily Share Value $ 73,083 $ 90,259 -19.03%Number of Trades 1,128 1,162 -2.93%Number of Trade Days 248 249 -0.40%Average Share Price $ 5.50 $ 5.53 -0.47%Advance/Decline Ratio 8/7 8/5 N/ALocal Index 2,137.26 2,995.52 -28.65%Cross-Listed Index 1,706.54 1,486.78 14.78%Composite Market Index 611.23 740.42 -17.45%Local Market Capitalization 5,367,178,305 7,999,308,023 -32.90%Cross-Listed Market Capitalization 2,849,599,943 2,481,309,653 14.84%Composite Market Capitalization 8,216,778,248 10,480,617,676 -21.60%Number of Listed Securities 26 27 -3.70%

Figure 2 illustrates the breakdown of Regular Market trades which occurred during 2014. There was a decrease in the number of trades occurring on the Regular Market as 1,128 trades occurred in 2014 while 1,162 trades occurred in 2013; a decrease of 2.93%.

8

Table 5 and Table 6 show the top traded companies for the year in terms of volume and value. Fortress Caribbean Property Fund - Value Fund was the top performer for 2014; it was the only security to exceed the 1 million shares traded mark for the year. Sagicor Financial Corporation continues to be a strong performer being the second best performer in terms of volume traded. In terms of value traded, Goddard Enterprises Limited was the top performer followed by, Massy Holdings Limited; Emera (Caribbean) Incorporated rounded out the top three.

Table 5 - Top Five Traded Companies by Volume – 2014

2014 2013 2014 2013Company Volume Volume Value ValueFortress Caribbean Property Fund - Value Fund 1,329,650 61,038 $ 718,681 $ 25,187 Sagicor Financial Corporation 892,015 2,190,513 $ 1,753,542 $ 4,564,223

Fortress Caribbean Property Fund - Development Fund 863,605 121,087 $ 179,168 $ 15,820 Goddard Enterprises Limited 734,456 363,401 $ 4,564,527 $ 2,225,152 Banks Holdings Limited 668,004 246,244 $ 1,963,232 $ 733,970

Figure 2 - Trade Frequency Comparison (Regular Market)

Jan

64 152 103 81 101 97

116 101 72 155 41 94

2014

2013

Feb Mar Apr May Jun

No.

of T

rade

s

160

140

120

100

80

60

40

20

0

BSE Trade Frequency Comparison(Regular Market)

Jul Aug Sept

99 110 91

74 93 94

Oct Nov Dec

77 75 78

110 93 119

9

For the fourth quarter, Banks Holdings Limited, Sagicor Financial Corporation and Massy Holdings Limited were the top three performers in terms of volume traded; Goddard Enterprises Limited and Cave Shepherd and Company Limited rounded out the top five volume performers. Massy Holdings Limited, Banks Holdings Limited, Goddard Enterprises Limited, Cave Shepherd and Company Limited and Emera (Caribbean) Incorporated were the top performers in terms of value traded for the final quarter of 2014. Table 7 and Table 8 illustrate the top traded companies for the quarter by volume and value.

Table 7 - Top Five Traded Companies by Volume – 4th Quarter

Table 8 - Top Five Traded Companies by Value – 4th Quarter

2014 2013 2014 2013Company Volume Volume Value ValueBanks Holdings Limited 430,312 172,633 $ 1,247,487 $ 519,544 Sagicor Financial Corporation 147,611 899,326 $ 263,224 $ 1,960,191 Massy Holdings Limited 146,255 28,794 $ 2,952,653 $ 496,699 Goddard Enterprises Limited 130,956 44,570 $ 827,988 $ 273,952 Cave Shepherd and Company Limited 115,067 87,842 $ 343,987 $ 256,997

2014 2013 2014 2013Company Value Value Volume VolumeMassy Holdings Limited $ 2,952,653 $ 496,699 146,255 28,794 Banks Holdings Limited $ 1,247,487 $ 519,544 430,312 172,633 Goddard Enterprises Limited $ 827,988 $ 273,952 130,956 44,570 Cave Shepherd and Company Limited $ 343,987 $ 256,997 115,067 87,842 Emera (Caribbean) Incorporated $ 263,836 $ 580 10,266 29

Table 6 - Top Five Traded Companies by Value – 2014

2014 2013 2014 2013Company Value Value Volume VolumeGoddard Enterprises Limited $ 3,736,539 $ 1,951,200 734,456 363,401 Massy Holdings Limited $ 1,838,491 $ 1,278,997 198,658 159,654 Emera (Caribbean) Incorporated $ 1,490,318 $ 2,604,032 81,832 49801Banks Holdings Limited $ 1,030,326 $ 2,176,238 668,004 246,244 Sagicor Financial Corporation $ 828,658 $ 828,658 892,015 2,190,513

10

Table 9 - Put-through Market Activity 2014

Security No. of Trades Volume Value

Banks Holdings Limited 5 35,655 $ 115,650

Cave Shepherd & Company Limited 1 1,600 $ 3,536

Cable & Wireless (Barbados) Limited 1 1,400 $ 3,920

FirstCaribbean International Bank 2 5,366 $ 14,035

Goddard Enterprises Limited 3 90,396 $ 574,725

Sagicor Financial Corporation 140 1,495,144 $ 3,147,847

TOTAL 152 1,629,561 $ 3,859,712

Junior and Block Trade Markets

There was no activity on the Junior and Block Trade Markets for the year ended December 31, 2014.

Put-through Market

There was a 45% decrease in volume and an associated 77% decrease in the value traded for the Put-through Market in 2014. The total volume and value traded in 2014 was 1,629,561 shares and $3,859,712 respectively. This is compared to a total volume of 2,959,128 shares with a corresponding value of $17,134,360 traded for the year ended December 31, 2013. Table 9 below, illustrates the activity which occurred on this market for 2014.

Fixed Income Market As at December 31, 2014 twenty-six (26) Barbados Government Debentures and fifteen (15) Barbados Government Treasury Notes traded on the board of the Exchange as compared to twenty-four (24) Barbados Government Debentures, sixteen (16) Barbados Government Treasury Notes and one (1) Government-backed security trading for the corresponding period in 2013. There were a total of 229 trades occurring on the Bond Market resulting in a face value of $9,921,000 trading as compared to 195 trades and a total face value of $43,370,000 trading as at December 31, 2013. Table 10 below summarizes all bonds traded for the period ended December 31, 2014.

Table 10 - Fixed Income Market activity 2014

Security No. of Trades Amount Traded

Barbados Government Debenture 4.75% 2016 4 58,000





11

Security No. of Trades Amount Traded





Barbados Government Debenture 6.75% 2022 7 1,121,000



Barbados Government Debenture 7% 2017 8 654,000









Barbados Government Debenture 7.50% 2026 1 1,500,000





Barbados Government T/Note 4.125% 2015 1 2,000





Barbados Government T/Note 6% 2016 19 178,000







Barbados Government T/Note 6.5% 2019 4 3,016,000



TOTALS 229 9,921,000

12

Table 11 - Index and Market Capitalization - Year on Year

Index 14-Dec-14 31-Dec-13 % ChangeLocal 2,137.26 2,995.52 -28.65%Cross-Listed 1,706.54 1,486.78 14.78%Composite 611.23 740.42 -17.45%

Market Capitalization 14-Dec-14 31-Dec-13 % ChangeLocal 5,367,178,305 7,999,308,023 -32.90%Cross-Listed 2,849,599,943 2,481,309,653 14.84%Composite 8,216,778,248 10,480,617,676 -21.60%

Table 12 - Index and Market Capitalization - 4th Quarter

Index 14-Dec-14 30-Sep-14 % ChangeLocal 2,137.26 2,136.73 0.02%Cross-Listed 1,706.54 1,676.68 1.78%Composite 611.23 607.29 0.65%

Index and Market Capitalization Movement

The Local and Composite Market measures recorded decreases at the close of 2014; the Cross-Listed Market measures continue to show improvements. The Local and Composite Indices recorded declines of 28.65% and 17.45% respectively while the Cross-Listed Index recorded an increase of 14.78%. The Cross-Listed Market Capitalization recorded an increase of 14.84% while the Local and Composite Market Capitalization measures both recorded decreases in excess of 20%.

Table 11 illustrates the year on year changes in both index and market capitalization.

For the fourth quarter of 2014, minor improvements were seen across the board for all market measures. The largest increases were seen for the Cross-Listed market measures as the Index recorded a 1.78% increase while the Market Capitalization measure recorded a 1.84% increase over its September 30, 2014 closing figure.

Cross-Listed improvements, for both the year on year and fourth quarter results, can be attributed directly to the share price appreciation of both Massy Holdings Limited and One Caribbean Media Limited. Table 12, below, illustrates the fourth quarter index and market capitalization performance.

Market Capitalization 14-Dec-14 30-Sep-14 % ChangeLocal 5,367,178,305 5,365,898,407.89 0.02%Cross-Listed 2,849,599,943 2,798,239,354.90 1.84%Composite 8,216,778,248 8,164,137,763 0.64%

13

Figure 3 below, illustrates index movement over the one year period 2013 – 2014. It clearly displays the sharp increase in Cross-Listed Index performance at the end of May 2014 when the traded price of Massy Holdings Limited climbed 13.04% from $17.25 at the opening of 2014 to $19.50; the closing price for Massy Holdings Limited at December 31, 2014 was $20.00.

Figure 3 - Index Movement for 2013 – 2014

Year on Year Index Movement

Local Index

Cross-Listed Index

Composite Index% C

hang

e

15.00%

10.00%

5.00%

0.00%

-5.00%

-10.00%

-15.00%

-20.00%

-25.00%

Decem

ber

February

March

April

May

June July

Augu

st

Sept

embe

r

Octob

er

Nov

embe

r

Decem

ber

-30.00%

-35.00%

Janu

ary

20.00%

14

Advancers Decliners – 2014

For the year under review, of the twenty-six (26) securities listed at close, eight (8) advanced, seven (7) declined, seven (7) remained unchanged, four (4) did not trade; one (1) security previously listed was de-listed during the course of the year under review (See Table 13)4. This is compared to eight (8) of the twenty-seven (27) listed securities advanced, five (5) declined, seven (7) remained unchanged, five (5) did not trade and two (2) newly listed securities.

Fortress Caribbean Property Fund - Development Fund recorded the greatest share price appreciation for 2014 climbing 100% from $0.11 at the close of 2013 to $0.22 at the close of 2014. One Caribbean Media Limited (29.17%), Fortress Caribbean Property Fund - Value Fund (25%), Massy Holdings Limited (15.94) and Cave Shepherd and Company Limited (11.11%) were the only other securities that had a share appreciation greater than 10%. The three remaining securities that experienced share price appreciation were Emera (Caribbean) Incorporated 5.5% Preference, West India Biscuit Company Limited and Goddard Enterprises Limited.

Four (4) companies experienced declines in excess of 10% in 2014. Barbados Dairy Industries Limited suffered the largest decline as their share price fell by 50% at the end of 2014. FirstCaribbean International Bank, Sagicor Financial Corporation and Cable and Wireless (Barbados) Limited were the other companies to experience double digit declines (See Table 13 below).

Year-end 2014

Year-end 2014

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Dec 31 2014

Dec 312013

ABV Investments Incorporated 8,333 $ 2,540 0.32 0.32 0.00%

BICO Industries Limited 11,605 $ 19,748 1.65 1.80 -8.33%

Barbados Dairy Industries Limited 1,850 $ 2,775 1.50 3.00 -50.00%

Barbados Farms Limited 52,166 $ 27,206 0.50 0.50 0.00%

Banks Holdings Limited 668,004 $ 1,963,232 2.90 3.03 -4.29%

Fortress C'bean Property Fund - Dev Fund 863,605 $ 179,168 0.22 0.11 100.00%

Fortress C'bean Property Fund - Val Fund 1,329,650 $ 718,681 0.50 0.40 25.00%

Cave Shepherd and Company Limited 171,317 $ 478,267 3.00 2.70 11.11%

Cable and Wireless Barbados Limited 76,609 $ 220,295 3.00 3.40 -11.76%

FirstCaribbean International Bank 127,326 $ 261,733 1.80 2.98 -39.60%

Goddard Enterprises Limited 734,456 $ 4,564,527 6.34 6.15 3.09%

Table 13 - Total Trading Activity by Company (Regular and Junior Market only)

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

15

Year-end 2014

Year-end 2014

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Dec 31 2014

Dec 312013

Insurance Corporation Of Barbados Limited 368,232 $ 943,085 2.41 2.60 -7.31%

Jamaica Money Market Brokers Limited 3,100 $ 969 0.15 0.15 0.00%

Light and Power Holdings Limited 81,832 $ 2,102,327 25.70 25.70 0.00%

Light And Power Holdings Ltd 5.5% Pref 330 $ 1,082 3.30 3.11 6.11%

Massy Holdings Limited 198,658 $ 3,982,979 20.00 17.25 15.94%

One Caribbean Media Limited 129,757 $ 793,956 6.20 4.80 29.17%

Sagicor Financial Corporation 6.5% Pref 587 $ 1,327 2.26 2.26 0.00%

Sagicor Financial Corporation 892,015 $ 1,753,542 1.80 2.24 -19.64%

Trinidad Cement Limited 2,968 $ 3,969 0.80 0.80 0.00%

West India Biscuit Company Limited 1,834 $ 19,126 10.46 10.03 4.29%

The West Indies Rum Distilleries Limited 10,515 $ 84,115 8.00 8.00 0.00%

Royal Fidelity TIGRS A Fund (J) 0 $ - 10.50 10.50 0.00%

Royal Fidelity TIGRS A1 Fund (J) 0 $ - 10.00 10.00 0.00%



5,734,749 $ 18,124,650

For the fourth quarter, as illustrated in Table 14, four (4) securities advanced, five (5) declined, eight (8) remained unchanged and nine (9) did not trade. This is compared to three (3) securities advanced, two (2) declined, eleven (11) remained unchanged, nine (9) did not trade and two (2) new listings in the last quarter of 2013.

Cave Shepherd and Company Limited (19.52%), Emera (Caribbean) Incorporated (6.11%), Massy Holdings Limited (2.56%) and Goddard Enterprises Limited (0.48%) were the only companies to register share price appreciation for the quarter. Barbados Farms Limited was the only company to record a double digit decline of 16.67% for the quarter.

*(J) Denotes Junior Market; (DL) Denotes Delisted Security

16

Table 14 - Fourth Quarter Trading Activity by Company (Regular and Junior Market only)

4th

Quarter 2014

4th Quarter

2014 CLOSING

PRICECLOSING

PRICE%

ChangeSECURITY Volume Value Dec 31

2014 Sept 30

2014

ABV Investments Incorporated 3,333 $ 1,000 0.32 0.32 0.00%BICO Industries Limited 6,837 $ 11,231 1.65 1.75 -5.71%Barbados Dairy Industries Limited 0 $ - 1.50 1.50 0.00%Barbados Farms Limited 23,945 $ 12,063 0.50 0.60 -16.67%Banks Holdings Limited 430,312 $ 1,247,487 2.90 2.95 -1.69%Fortress C'bean Property Fund - Dev Fund 42,809 $ 8,531 0.22 0.22 0.00%Fortress C'bean Property Fund - Val Fund 34,333 $ 16,568 0.50 0.55 -9.09%Cave Shepherd and Company Limited 115,067 $ 343,987 3.00 2.51 19.52%Cable and Wireless Barbados Limited 14,515 $ 37,107 3.00 3.00 0.00%FirstCaribbean International Bank 18,000 $ 32,009 1.80 1.80 0.00%Goddard Enterprises Limited 130,956 $ 827,988 6.34 6.31 0.48%Insurance Corporation Of Barbados Limited 47,468 $ 114,427 2.41 2.44 -1.23%Jamaica Money Market Brokers Limited 2,088 $ 814 0.15 0.15 0.00%Emera (Caribbean) Incorporated 10,266 $ 263,836 25.70 25.70 0.00%Emera (Caribbean) Incorporated 5.5% Pref 290 $ 957 3.30 3.11 6.11%Massy Holdings Limited 146,255 $ 2,952,653 20.00 19.50 2.56%One Caribbean Media Limited 0 $ - 6.20 6.20 0.00%Sagicor Financial Corporation 6.5% Pref 0 $ - 2.26 2.26 0.00%Sagicor Financial Corporation 147,611 $ 263,224 1.80 1.80 0.00%Trinidad Cement Limited 0 $ - 0.80 0.80 0.00%West India Biscuit Company Limited 0 $ - 10.46 10.46 0.00%The West Indies Rum Distilleries Limited 298 $ 2,381 8.00 8.00 0.00%Royal Fidelity TIGRS A Fund (J) 0 $ - 10.50 10.50 0.00%Royal Fidelity TIGRS A1 Fund (J) 0 $ - 10.00 10.00 0.00%Royal Fidelity TIGRS A2 Fund (J) 0 $ - 10.00 10.00 0.00%Royal Fidelity TIGRS A3 Fund (J) 0 $ - 10.00 10.00 0.00% 1,174,383 $ 6,136,264 - -


17

Historical Company Trading Statistics

As illustrated in Table 15, six (6) securities increased in price while twelve (12) declined over the last five years.

Table 15 - Historical Five Year Price Range

CLOSING PRICE

CLOSING PRICE

CLOSING PRICE

CLOSING PRICE

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY 31.12.2014 31.12.2013 31.12.2012 31.12.2011 31.12.2010 31.12.2009 ABV Investments Incorporated $ 0.32 $ 0.32 $ $0.50 $ 1.25 $ 1.55 $ 1.55 -79%BICO Limited $ 1.65 $ 1.80 $ $1.60 $ 1.86 $ 1.47 $ 1.86 -11%Barbados Dairy Industries Limited $ 1.50 $ 3.00 $ $3.00 $ 5.29 $ 5.29 $ 5.49 -73%Barbados Farms Limited $ 0.50 $ 0.50 $ $1.00 $ 1.50 $ 2.49 $ 2.05 -76%Banks Holdings Limited $ 2.90 $ 3.03 $ $3.00 $ 3.29 $ 4.00 $ 4.00 -28%Fortress Caribbean Property Fund - Dev Fund $ 0.22 $ 0.11 Fortress Caribbean Property Fund - Value Fund $ 0.50 $ 0.40 Cave Shepherd and Company Limited $ 3.00 $ 2.70 $ $4.68 $ 4.60 $ 4.48 $ 6.20 -52%Cable and Wireless (Barbados) Limited $ 3.00 $ 3.40 $ $5.00 $ 5.34 $ 5.40 $ 5.79 -48%FirstCaribbean International Bank Limited $ 1.80 $ 2.98 $ $3.05 $ 2.90 $ 3.00 $ 2.75 -35%Goddard Enterprises Limited $ 6.34 $ 6.15 $ $5.40 $ 6.00 $ 5.90 $ 6.00 6%Insurance Corporation Of Barbados Limited $ 2.41 $ 2.60 $ $2.60 $ 2.50 $ 3.05 $ 3.01 -20%Jamaica Money Market Brokers Limited $ 0.15 $ 0.15 $ $0.15 $ 0.10 $ 0.10 $ 0.15 0%Emera (Caribbean) Incorporated $ 25.70 $ 25.70 $ $25.70 $ 25.70 $ 12.00 $ 11.52 123%Emera (Caribbean) Incorporated 5.5% Pref -* $ 3.30 $ 3.11 $ $3.11 $ 3.11 $ 3.11 $ 3.10 6%Massy Holdings Limited $ 20.00 $ 17.25 $ $14.05 $ 13.60 $ 12.50 $ 15.49 29%One Caribbean Media Limited $ 6.20 $ 4.80 $ $4.75 $ 2.95 $ 3.10 $ 3.10 100%Sagicor Financial Corporation 6.5% Pref $ 2.26 $ 2.26 $ $2.08 $ 2.00 Sagicor Financial Corporation $ 1.80 $ 2.24 $ 2.23 $ 2.87 $ 2.90 $ 3.50 -49%Trinidad Cement Limited $ 0.80 $ 0.80 $ 0.80 $ 0.80 $ 0.80 $ 2.49 -68%West India Biscuit Company Limited $ 10.46 $ 10.03 $ 10.01 $ 10.01 $ 10.01 $ 9.14 14%The West Indies Rum Distilleries Limited $ 8.00 $ 8.00 $ 8.00 $ $8.00 $ 8.50 $ 8.50 -6%Royal Fidelity TIGRS A Fund (J) $ 10.50 $ 10.50 $ 10.50 $ $10.75 $ 10.61 Royal Fidelity TIGRS A1 Fund (J) $ 10.00 $ 10.00 $ 10.00 $ $10.00 $ 10.00 Royal Fidelity TIGRS A2 Fund (J) $ 10.00 $ 10.00 $ 10.00 Royal Fidelity TIGRS A3 Fund (J) $ 10.00 $ 10.00 $ 10.00


18

Market Events – 2014

On January 2, 2014, the BSE made the following announcements:• TheBarbadosStockExchangeInc.(BSE)wishestoadvisethattheCorporateGovernanceRecommendationsfor

Listed Companies on the Barbados Stock Exchange Inc. and Insider Trading Guidelines for Listed Companies on the Barbados Stock Exchange Inc. became enforceable on January 1, 2014.

• TheBarbadosStockExchange Inc. (BSE) ispleasedtoannouncetheapprovalofthenewdomesticRulesofthe BSE, which become effective on January 13, 2014. Copies of the Rules can be obtained at the Barbados Stock Exchange Inc., 8th Avenue, Belleville, St. Michael (limit of one per person) or can be downloaded from our website, www.bse.com.bb.

On January 31, 2014, the BSE made the following announcement:• 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) will be delisted from the Board of the BSE on February 5, 2014.

On February 5, 2014, the BSE made the following announcement:• 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.

On August 25, 2014, the BSE made the following announcement:• Neal and Massy Holdings Limited - Please take note that effective August 25, 2014, the name of Neal and

Massy Holdings Limited was changed to Massy Holdings Limited.

On October 21, 2014, the BSE made the following announcement:• Almond Resorts Incorporated - Please take note that effective October 21, 2014, the name of Almond Resorts

Incorporated was changed to ABV Investments Incorporated.

On December 29, 2014, the BSE made the following announcement:• Light and Power Holdings Limited - Please take note that effective December 7, 2014, the name of Light and

Power Holdings Limited was changed to Emera (Caribbean) Incorporated.

19

The Regulatory Roundup – 2014

1. Name Changes

• Almond Resorts Inc. changed its name to ABVInvestments Inc. effective May 28, 2014.

• Neal &MassyHoldings Limited changed toMassyHoldings Ltd. effective July 24, 2014.

• Light&PowerHoldingsLtd.changeditsnametoEmera(Caribbean) Incorporated effective November 24, 2014.

2. Rules of the BSE

Further amendments were made to the Rules of the Barbados Stock Exchange Inc. which became effective on January 13, 2014, including some short and medium term provisions recommended by the Financial Services Commission. Additional amendments will be made as needed during 2015.

3. International Securities Market

The Draft Rules of the International Securities Market were reviewed by the Financial Services Commission and several amendments were suggested. A second draft of the rules inclusive of these amendments will be resubmitted for review and approval.

4. Listings/De-listings

Barbados Shipping & Trading Company Limited de-listed from the board of the Exchange on February 5, 2014.

5. Demutualization of the BSE

As recommended by Board of Directors, an independent review was done of the Valuation of the BSE and proposed Allocation of Value and the report was presented to members at the AGM held November 27, 2014. A Plan of Arrangement has been proposed as the legal vehicle that will be used to facilitate the Demutualization. Regulatory

approval must be sought from the Financial Services Commission for the demutualization of the BSE.

6. Stamp Duty Adjudication

The adjudication process continued to go well and is fully utilized by market participants, stakeholders and the general public.

7. National Consultation on Draft Regional Securities Law

The BSE was invited by the Ministry of Finance to take part in a general discussion with stakeholders regarding a draft model regional securities law proposed by CARICOM, which was held October 15 – 17, 2014 at Government Headquarters.

The mandates of the Regional Securities Law are:• To create the framework for an integrated

securities market in the region.• Toprovidea stateof theart legalframeworkof

the securities market with the hope of having a unified legal framework in the community.

8. Major Regulatory Objectives for 2015

• ThecompletionoftheDemutualizationoftheBSE.• Overseeing the full launch of the International

Securities Market in Barbados.• ContinuetoupdatetheRulesoftheBSEtomeetthe

needs of our developing capital market, as well as keeping up to date with IOSCO standards and the requirements of governing legislation.

• To conduct Compliance Reviews on at least twomember-brokers

• Developing thewebsite of the BSE as a source ofregulatory information for use by investors, brokers, listed companies, and the general public.

20

Conclusion

Table 16 - Year on Year Index Comparison

At the close of the third quarter of 2014 trading activity, especially in terms of trading volume performance, had surpassed their corresponding 2013 values. Contracting share prices resulted in less than favorable value performance, however, the return of stable activity was seen as positive. Fourth quarter 2014 performance, while promising, simply did not match that of 2013 which saw large transactions on both the Put Through (1,995,967 shares in Goddard Enterprises Limited at $6.25) and Block Trade Markets (12,907,292 shares in Banks Holdings Limited at $2.95).

An examination of the index performance of some exchanges across the globe showed positive results for most international markets while all regional markets recorded declines in index performance. Table 16 below, illustrates that all of the international exchanges, with the exception of the London Stock Exchange’s FTSE 100, experienced increases in their index measure. The largest increase of 17.94% was recorded by NASDAQ’s Nasdaq 100 Index followed by the New York Stock Exchange’s S&P 500 Index which recorded an increase of 11.39%. In the Region, Barbados Stock Exchange Inc. (BSE) recorded the largest decrease of 17.45%, followed by the Jamaica Stock Exchange (JSE) with a decrease of 5.31%. The Trinidad and Tobago Stock Exchange (TTSE) and the Eastern Caribbean Stock Exchange (ECSE) also recorded declines of 2.88% and3.37% respectively.

Index Name Regional Exchange Closing Dec 31

2014

Closing Dec 31

2013

% Change

Nasdaq 100 NASDAQ 4,236.28 3,592.00 17.94%

Dow Jones Industrial Average NASDAQ and New York Stock Exchange 17,823.07 16,576.66 7.52%

S&P 500 New York Stock Exchange 2,058.90 1,848.36 11.39%

FTSE 100 London Stock Exchange 6,566.09 6,749.10 -2.71%

Nikkei 225 Tokyo Stock Exchange 17,450.77 16,291.31 7.12%

Hang Seng Stock Exchange of Hong Kong 23,857.82 23,306.39 2.37%

BSE Composite Index Barbados Stock Exchange 611.23 740.42 -17.45%

JSE Market Index Jamaica Stock Exchange 76,353.39 80,633.55 -5.31%

TTSE Composite Index Trinidad and Tobago Stock Exchange 1,150.91 1,185.05 -2.88%

ECSE Index Eastern Caribbean Stock Exchange 140.64 145.55 -3.37%

As we look towards 2015, we are ever hopeful to see incremental improvements in market performance despite the many challenges being experienced in the wider economy. We will continue our infrastructural improvements, press ahead with the demutualization of the BSE and the establishment of our very own International Securities Market.

8thAvenueBelleville,St.MichaelBB11114,BarbadosT:(246)436-9871/2|F:(246)429-8942|www.bse.com.bb

bse 2014 year-end report

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