bse third quarter report 2014

Overview

At the close of the first nine months of 2014 the Barbados Stock Exchange (BSE) recorded increases in trading volume but decreases in trading value. As illustrated in Table 1 below, the total volume of shares traded increased by 8% while total value of shares traded recorded a decrease of 32% when compared with the corresponding period in 2013. Excluding extraordinary transactions which occurred in 2013 (Republic Bank Barbados Limited - 1,304,956 shares, $6,524,780.00) total traded volume would have recorded an increase of 41% and total traded value would have recorded a decrease of 4%.

The Regular Market recorded decreases in terms of both volume and value, the Put-Through Market experienced increases in volume but decreases in value while there was no activity on the Junior or Block Trade Markets.

Table 1 - Trading activity for first nine months

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

2014 Volume 2013 Volume 2014 Value 2013 Value Volume Value

Regular 4,560,366 4,706,443 $ 11,988,386 $ 17,983,039 -3% -33%

Put Through 1,561,161 952,350 $ 3,436,192 $ 4,603,446 64% -25%

Junior - - $ - $ - NA NA

Block Trade - - $ - $ - NA NA

Total 6,121,527 5,658,793 $ 15,424,578 $ 22,586,485 8% -32%

Market Third Quarter Third

Quarter Third Quarter Third Quarter % Change % Change

2014 Volume 2013 Volume 2014 Value 2013 Value Volume Value

Regular 1,668,858 1,045,244 $ 2,508,143 $ 2,767,312 60% -9%

Put Through 650,785 33,711 $ 1,188,818 $ 78,915 1830% 1406%

Junior - - $ - $ - NA NA

Block Trade - - $ - $ - NA NA

Total 2,319,643 1,078,955 $ 3,696,961 $ 2,846,227 115% 30%

The third quarter of 2014 was characterized by increases in total trading activity. Total trading volume and value for the quarter rose by 115% and 30% respectively (See Table 2).

Table 2 - Trading Activity for Third Quarter

2

3

Regular Market

The Regular Market recorded decreases in both the volume and value traded at the end of the third quarter of 2014. As illustrated in Table 3 below, the total share volume was 4,560,366, representing a decrease of 3% when compared to the 4,706,443 shares recorded for the same period in 2013. There was also a decrease of 33% in the value of shares traded at the end of the quarter as compared to the same period in 2013. There was a 7% increase in the number of trades occurring on the Regular Market as 898 trades occurred by the end of the third quarter. This as compared to 840 trades in 2013. Figure 1 illustrates a monthly comparison of the volume of trades for 2014 and 2013.

There was an improvement in average share price as well as positive changes being seen in the Cross-Listed Market measures, however, the Local and Composite Market measures recorded year-on-year decreases. The Cross-Listed Index recorded an increase of 13% while the Local and Composite indices recorded decreases of 28% and 18% respectively. Similar results were recorded for the Market Capitalization, where the Cross-Listed measure also recorded an increase of 13% while the Local and Composite Market Capitalization measures recorded declines of 36% and 25% respectively. The number of securities listed for the period ended September 30th, 2014 decreased to 261; down from 27 at the close of the third quarter of 2013.

Figure 1 - Trade Frequency Comparison

January

64 152 103 81 101 97

116 101 72 155 41 94

2014

2013

February March April May June

No.

of T

rade

s

160

140

120

100

80

60

40

20

0

BSE Trade Frequency Comparison

July August September

99 110 91

74 93 94

1Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Securities Commission, the shares of Barbados Shipping and Trading Company Limited were delisted from the Board of the BSE on February 5, 2014.

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Table 4 and Table 5 below show the top traded companies by volume and value for the year-to-date. Fortress Caribbean Property Fund - Value Fund and Fortress Caribbean Property Fund - Development Fund were the two top traded securities in terms of volume accounting for 28.4% and 18% of the total volume traded for the period January 1 to September 30, 2014 respectively. Although only accounting for 13.23% of the total volume traded for the year, Goddard Enterprises Limited was the top performer in terms of value traded due largely in part to its steadily increasing share price. Light and Power Holdings Limited and Sagicor Financial Corporation rounded out the top three; the latter being the most actively traded security on the board of the Exchange accounting for 30.62% of the number of trades conducted as at the close of the third quarter of 2014.

Table 4 - Top Five Traded Companies by Volume: Year to date

2014 2013 2014 2013Company Volume Volume Value ValueFortress Caribbean Property Fund - Val Fund 1,295,317 0 $ 702,114 $ - Fortress Caribbean Property Fund - Dev Fund 820,796 0 $ 170,637 $ - Sagicor Financial Corporation 744,404 1,291,187 $ 1,490,318 $ 2,604,032 Goddard Enterprises Limited 603,500 318,831 $ 3,736,539 $ 1,951,200 Insurance Corporation Of Barbados Limited 320,764 91,478 $ 828,658 $ 234,787

Table 3 - Year on Year Regular Market Statistics

Regular Market Year on Year Comparison 30-Sep-14 30-Sep-13 % ChangeTotal Share Volume 4,560,366 4,706,443 -3%Total Share Value 11,988,386 17,983,039 -33%Average Daily Share Volume 24,518 25,303 -3%Average Daily Share Value $ 64,454 $ 96,683 -33%Number of Trades 898 840 7%Number of Trade Days 186 186 0%Average Share Price $ 5.47 $ 5.97 -5%Advance/Decline Ratio 7/8 6/8 N/ALocal Index 2,136.73 2,979.25 -28%Cross – Listed Index 1,676.68 1,486.78 13%Composite Market Index 607.29 737.33 -18%Local Market Capitalization 5,365,898,408 8,434,729,762 -36%Cross-Listed Market Capitalization 2,798,239,355 2,481,309,653 13%Composite Market Capitalization 8,164,137,763 10,916,039,415 -25%Number of Listed Securities 26 27 -4%

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As Table 6 and Table 7 illustrate, Fortress Caribbean Property Fund - Development Fund and Fortress Caribbean Property Fund - Value Fund were the top two traded securities for the third quarter in terms of volume. In terms of value, Goddard Enterprises Limited and Sagicor Financial Corporation were the top two traded securities.

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

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

2014 2013 2014 2013Company Volume Volume Value ValueFortress Caribbean Property Fund - Dev Fund 542,009 0 $ 119,217 $ - Fortress Caribbean Property Fund - Val Fund 533,675 0 $ 293,521 $ - Sagicor Financial Corporation 272,412 507,369 $ 494,452 $ 974,829 Banks Holdings Limited 90,935 40,708 $ 268,143 $ 119,203 Goddard Enterprises Limited 86,640 47,072 $ 542,943 $ 289,632

2014 2013 2014 2013Company Value Value Volume VolumeGoddard Enterprises Limited $ 542,943 $ 289,632 86,640 47,072 Sagicor Financial Corporation $ 494,452 $ 974,829 272,412 507,369 Fortress Caribbean Property Fund - Val Fund $ 293,521 $ - 533,675 0 Banks Holdings Limited $ 268,143 $ 119,203 90,935 40,708 Light And Power Holdings Limited $ 266,721 $ 500 10,405 25

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

2014 2013 2014 2013Company Value Value Volume VolumeGoddard Enterprises Limited $ 3,736,539 $ 1,951,200 603,500 318,831 Light And Power Holdings Limited $ 1,838,491 $ 1,278,997 71,566 49,772 Sagicor Financial Corporation $ 1,490,318 $ 2,604,032 744,404 1291187Neal And Massy Holdings Limited $ 1,030,326 $ 2,176,238 52,403 130,860 Insurance Corporation Of Barbados Limited $ 828,658 $ 828,658 320,764 91,478

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Put-Through Market Table 8 - Put Through Market Activity - YTD

Security No. of Trades Volume Value

Banks Holdings Limited 5 35,655 $ 115,649.50

Cave Shepherd And Company Limited 1 1,600 $ 3,536.00

Firstcaribbean International Bank 1 3,366 $ 10,434.60

Goddard Enterprises Limited 1 25,396 $ 158,725.00

Sagicor Financial Corporation 140 1,495,144 $ 3,147,846.92

TOTAL 148 1,561,161 $ 3,436,192.02

Junior Market

There was no activity on the Junior Market for the period January 1 to September 30, 2014.

Table 8 above, illustrates the Put Through transactions which have occurred as at September 30, 2014.

Block Trade Market

There were no recorded block trades on the board of the BSE for the period ending September 30, 2014.

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Bond Market

As at September 30, 2014 twenty-three (23) Barbados Government Debentures and fifteen (15) Barbados Government Treasury Notes traded on the board of the Exchange as compared to twenty-five (25) Barbados Government Debentures, fifteen (15) Barbados Government Treasury Notes and one (1) Government-backed security trading for the corresponding period in 2013. There were a total of 179 trades occurring on the Bond Market resulting in a face value of $5,471,000 trading as compared to 156 trades and a total face value of $38,016,000 trading as at September 30, 2013. Table 9 below summarizes all bonds traded for the period ended September 30, 2014.

Table 9 - Summary of Bonds Traded

Security No. of Trades Amount Traded

BARBADOS GOVERNMENT DEBENTURE 4.75% 2016 3 56,000











BARBADOS GOVERNMENT DEBENTURE 7% 2017 7 554,000

BARBADOS GOVERNMENT DEBENTURE 7% 2023 11 52,000







BARBADOS GOVERNMENT DEBENTURE 7.50% 2026 1 1,500,000




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Security No. of Trades Amount Traded

BARBADOS GOVERNMENT T/NOTE 4.125% 2015 1 2,000





BARBADOS GOVERNMENT T/NOTE 6% 2016 16 142,000










TOTALS 179 5,471,000

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Index and Market Capitalisation 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, only the Local and Composite Indices recorded declines of 1.12% and 0.73% respectively from their positions at June 30, 2014; there was no change in the Cross-Listed Index measure. When the comparison is extended to nine and 12 months (Table 11 and Table 12), performance was similar, as the Local and Composite Indices recorded declines in the 28% and 17% range respectively while the Cross-Listed Index recorded increases of 12.77% for both the nine and twelve month respectively.

The market capitalization comparisons are illustrated in Table 13 - 15. The Cross-Listed Market Capitalization was the only measure to record increases over the 9 month (12.77%) and 12 month (12.77%). These results can be attributed to marked increases in the share prices of both Massy Holdings Limited (formerly Neal and Massy Holdings Limited) and One Caribbean Media Limited. Massy Holdings Limited’s share price appreciated from $17.25 at the close of 2013 to $19.50 by the end of the third quarter of 2014; an increase of $2.25. One Caribbean Media Limited’s share price rose from $4.80 to $6.20 representing an increase of 29.17% over the nine month period under consideration.

Figure 2 below illustrates index movements over the last twelve months.

Table 10 - Index Comparison 3rd Quarter

Table 11 - Index Comparison Nine Months

Index 30-Sep-14 30-Jun-14 % ChangeLocal 2,136.73 2,161.03 -1.12%Cross Listed 1,676.68 1,676.68 0.00%Composite 607.29 611.75 -0.73%

Index 30-Sep-14 31-Dec-13 % ChangeLocal 2,136.73 2,995.52 -28.67%Cross Listed 1,676.68 1,486.78 12.77%Composite 607.29 740.42 -17.98%

Table 12 - Index Comparison Year-on-Year

Index 30-Sep-14 30-Sep-13 % ChangeLocal 2,136.73 2,979.25 -28.28%Cross Listed 1,676.68 1,486.78 12.77%Composite 607.29 737.33 -17.64%

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Table 13 - Market Capitalization Comparison 3rd Quarter

Table 14 - Market Capitalization Comparison Nine Months

Market Capitalisation 30-Sep-14 30-Jun-14 % ChangeLocal 5,365,898,408 5,423,749,948.68 -1.07%Cross Listed 2,798,239,355 2,798,239,354.90 0.00%Composite 8,164,137,763 8,221,989,304 -0.70%

Market Capitalisation 30-Sep-14 31-Dec-13 % ChangeLocal 5,365,898,408 7,999,308,023 -32.92%Cross Listed 2,798,239,355 2,481,309,653 12.77%Composite 8,164,137,763 10,480,617,676 -22.10%

Figure 2 - Index Movement - 12 months

Table 15 -Market Capitalization Comparison Year-on-Year

Market Capitalisation 30-Sep-14 30-Sep-13 % ChangeLocal 5,365,898,408 8,434,729,762 -36.38%Cross Listed 2,798,239,355 2,481,309,653 12.77%Composite 8,164,137,763 10,916,039,415 -25.21%

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%

Sept

embe

r

Oct

ober

Nov

embe

r

Dec

embe

r

Janu

ary

Febr

uary

Mar

ch

April

May

June July

Augu

st

Sept

embe

r

-30.00%

-35.00%

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Company Activity Comparative Report

For the first nine months of the year, ending September 30th 2014, seven (7) securities advanced, eight (8) declined, seven (7) remained unchanged, and four (4) did not trade; one (1) security was delisted. This is compared to six (6) securities advanced, eight (8) declined, seven (7) remained unchanged, and six (6) did not trade; one (1) security was delisted.

Fortress Caribbean Property Fund - Development Fund was the top advancer for the first nine months of 2014 doubling in price from $0.11 as at December 30, 2013 to $0.22 at the close of the third quarter. Fortress Caribbean Property Fund - Value Fund (37.5%), One Caribbean Media Limited (29.17%), Barbados Farms Limited (20%) and Massy Holdings Limited (13.04%) were the remaining four companies to experience share price appreciation in excess of 10%. The two other companies to increase in price were West India Biscuit Company Limited and Goddard Enterprises Limited.

Four companies experienced declines in excess of 10% for the first nine months of 2014. Barbados Dairy Industries Limited suffered the largest decline as their share price fell by 50% at the close of the period. FirstCaribbean International Bank, Sagicor Financial Corporation and Cable and Wireless Barbados Limited were the other companies to experience double digit declines.

YTD2014

YTD2014

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Sep 30 2014

Dec 312013

Almond Resorts Incorporated 5,000 $ 1,540 0.32 0.32 0.00%

BICO Industries Limited 4,768 $ 8,517 1.75 1.80 -2.78%

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

Barbados Farms Limited 28,221 $ 15,144 0.60 0.50 20.00%

Banks Holdings Limited 237,692 $ 715,745 2.95 3.03 -2.64%

Fortress Caribbean Property Fund - Dev Fund 820,796 $ 170,637 0.22 0.11 100.00%

Fortress Caribbean Property Fund - Val Fund 1,295,317 $ 702,114 0.55 0.40 37.50%

Cave Shepherd and Company Limited 53,242 $ 126,876 2.51 2.70 -7.04%

Cable and Wireless Barbados Limited 62,094 $ 183,187 3.00 3.40 -11.76%

FirstCaribbean International Bank 109,326 $ 229,725 1.80 2.98 -39.60%

Goddard Enterprises Limited 603,500 $ 3,736,539 6.31 6.15 2.60%

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

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YTD2014

YTD2014

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Sep 30 2014

Dec 312013

Insurance Corporation Of Barbados Limited 320,764 $ 828,658 2.44 2.60 -6.15%

Jamaica Money Market Brokers Limited 1,012 $ 155 0.15 0.15 0.00%

Light and Power Holdings Limited 71,566 $ 1,838,491 25.70 25.70 0.00%

Light And Power Holdings Ltd 5.5% Pref 40 $ 125 3.11 3.11 0.00%

Massy Holdings Limited 52,403 $ 1,030,326 19.50 17.25 13.04%

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 744,404 $ 1,490,318 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 10,217 $ 81,734 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%



4,560,366 $ 11,988,386

For the third quarter of 2014, five (5) securities advanced, five (5) declined, ten (10) remained unchanged and six (6) did not trade. This is compared to five (5) securities advanced, four (4) declined, nine (9) remained unchanged and nine (9) did not trade.

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

3rd

Quarter 2014

3rd Quarter

2014 CLOSING

PRICECLOSING

PRICE%

ChangeSECURITY Volume Value Sep 30

2014June 30

2014

Almond Resorts Incorporated 1,000 $ 300 0.32 0.32 0.00%BICO Industries Limited 2,747 $ 4,932 1.75 1.80 -2.78%Barbados Dairy Industries Limited 1,350 $ 2,025 1.50 1.50 0.00%Barbados Farms Limited 11,753 $ 6,758 0.60 0.51 17.65%Banks Holdings Limited 90,935 $ 268,143 2.95 3.04 -2.96%Fortress Caribbean Property Fund - Dev Fund 542,009 $ 119,217 0.22 0.20 10.00%Fortress Caribbean Property Fund - Val Fund 533,675 $ 293,521 0.55 0.57 -3.51%Cave Shepherd and Company Limited 20,047 $ 46,588 2.51 2.20 14.09%Cable and Wireless Barbados Limited 12,696 $ 35,322 3.00 3.00 0.00%FirstCaribbean International Bank 23,638 $ 41,405 1.80 1.80 0.00%Goddard Enterprises Limited 86,640 $ 542,943 6.31 6.21 1.61%Insurance Corporation Of Barbados Limited 31,885 $ 78,896 2.44 2.59 -5.79%Jamaica Money Market Brokers Limited 1,012 $ 155 0.15 0.15 0.00%Light and Power Holdings Limited 10,405 $ 266,721 25.70 25.70 0.00%Light And Power Holdings Limited 5.5% Pref 0 $ - 3.11 3.11 0.00%Massy Holdings Limited 11,527 $ 229,864 19.50 19.50 0.00%One Caribbean Media Limited 7,100 $ 44,668 6.20 6.20 0.00%Sagicor Financial Corporation 6.5% Pref 0 $ - 2.26 2.26 0.00%Sagicor Financial Corporation 272,412 $ 494,452 1.80 2.00 -10.00%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 217 $ 1,734 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% 1,668,858 $ 2,508,143 - -

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Conclusion

Table 18 - Regional Index Comparative Analysis

The third quarter of 2014 has been promising for the Barbados Stock Exchange with increases in both trading volumes and values of 115% and 30% respectively over their corresponding June 2014 closing figures. Despite improvements in the trading activity, the BSE Composite Index measure showed decreases of 0.73% for the three month, 17.98% over the nine month and 17.64% for the twelve month period. A look at our regional counterparts shows that both the Jamaica Stock Exchange (JSE) and the Eastern Caribbean Stock Exchange (ECSE) have recorded index growth over the three month period, however, all regional exchanges experienced declines over nine and twelve month periods.

During the 4th quarter of 2014, the BSE will once again host its Corporate Governance and Accountability Conference in association with the Canadian Society of Corporate Secretaries (CSCS) and Chartered Secretaries Canada - the Canadian Division of the Institute of Chartered Secretaries and Administrators (ICSA). The two day conference will be held on November 13 and 14 at the Hilton Barbados at Needham’s Point, St. Michael. Featured speakers include York University’s Professor Richard Leblanc and Professor Poonam Puri, Sylvia Groves, President and Creative Director - Governance Studio, Catherine Bromilow, Partner - PricewaterhouseCoopers Center for Board Governance, Meghan Herman, Senior Marketing Manager - Diligent Board Member Services and Andrew Fastow, former Chief Financial Officer - Enron Corporation. Featured panelists include Sandra Osborne, Q.C. - Attorney-at-Law and Chartered Secretary, Ronaele Dathorne-Bayrd, Engagement Leader, Corporate Services - PricewaterhouseCoopers Services Inc. and Dr. Axel Kravatzky, Founding Chairman of the Caribbean Corporate Governance Institute.

PERFORMANCE

Regional Exchange Three Month

Nine Month

Twelve Month

Barbados Stock Exchange Composite Index -0.73% -17.98% -17.64%

Jamaica Stock Exchange Market Index 4.66% -8.18% -14.68%

Trinidad and Tobago Composite Index -1.84% -3.37% 0.13%

Eastern Caribbean Stock Exchange Share Index 1.23% -2.84% -4.54%

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

bse third quarter report 2014

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