BSE 2012 Year-end Report

2012 Year End Report The following report reviews the overall performance of the companies listed on the Barbados Stock Exchange for the period January 1st, 2012 to December 31st, 2012 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:         

Overall Performance Economic Factors Trading activity by Market Indices and Market Capitalization Advancers/Decliners for 2012 Historical Company Trading statistics Market Events The Regulatory Roundup Concluding Remarks

Overall Performance

General performance on the Board of the Barbados Stock Exchange Inc. (BSE) was stable for the year 2012 in line with the general economic conditions which are prevailing in the wider local economy. Trading for the year started slow but picked up with increased activity in the Put Through and Block Trade Markets during the last quarter of the year; there were also improvements in the level of Bond Market activity during 2012. There were two transactions pursuant to takeovers; the first was the completion of trades regarding the offer made by AMCL Holdings Limited in 2011 to purchase all issued and outstanding shares of ANSA MCAL Barbados Limited (MCAL). The second transaction was that of Republic Bank Limited's offer to purchase all issued and outstanding shares of Republic Bank Barbados Limited (RBBL).

The latter transaction is what lead to the activity on the Block Trade market; a total of three transactions took place on this market.

A comparison of total trading volume and value 2012/2011, inclusive of extraordinary transactions for 2012 mentioned above as well as those occurring in 2011 - EMERA (Barbados) Holdings No. 2 Incorporated's takeover of Light and Power Holdings Limited and AMCL Holdings Limited's takeover of ANSA McAL (Barbados) Limited, shows an increase in total trading volume of 129% but a decrease in total trading value of 20% as illustrated in Table 1 below. However, excluding the extraordinary transactions for both years, total trading volume would have decreased by 10% and total trading value

Page |2 would have declined by 6%.

The Junior Market of the BSE welcomed two new listings on September 20th, 2012 when Royal Fidelity (Barbados) Investment Fund Limited listed two of its sub funds - Royal Fidelity TIGRS A2 Fund and Royal Fidelity TIGRSA3 Fund.

Table 1: Trading Activity Comparison by Market

Market

December

December

December

2012 Volume

2011 Volume

Regular

7,974,092

Odd-Lot Put - Through

December

% Change Volume

% Change Value

2012 Value

2011 Value

16,162,861

$

36,529,235

$

238,242,191

-51%

-85%

142,892

170,741

$

602,889

$

852,648

-16%

-29%

531,269

890,195

$

2,026,359

$

3,465,480

-40%

-42%

Junior

2,000

5,000

$

20,925

$

53,750

-60%

-61%

Block Trade

30,817,908

-

$

154,089,540

$

-

NA

NA

Total

39,468,161

17,228,797

$

193,268,948

$

242,614,069

129%

-20%

Market indices have shown moderate improvement in 2012 when compared to the closing figures for 2011. At year-end, the Local Index was the only measure to record a decrease of 5.66%. The Cross-listed and Composite indices, however, had risen by 12.88% and 1.10% respectively, above the 2011 year-end figures. These increases were due primarily to the increase in traded price of three (3) of the four (4) Cross-Listed securities on the board of the BSE. Jamaica Money Market Brokers Limited's price increased 50%, Neal and Massy Holdings Limited's price rose by 3.31% and One Caribbean Media Limited's price increased by 61.02%. Market Capitalization performed similarly with the local market cap experiencing an decrease of 1.86% and the cross-listed increasing by 13.83%.

Table 2 below illustrates the Trading Statistics Comparison 2011 - 2012. Quarters I and IV were the most active; activity was attributed to the two takeover transactions previously mentioned.

Table 2: Trading Statistics Comparison 2011 - 2012

Number of Shares Quarter

Number of Shares

2012

2011

I

2,464,186

11,244,088

II

1,380,819

III

Market Value

Market Value

Number of Transactions

Number of Transactions

2012

2011

2012

2011

$

14,619,815.38

$ 220,108,986.48

452

446

1,340,272

$

4,517,815.31

$

6,936,617.89

418

368

1,908,100

3,192,963

$

8,276,299.69

$

8,712,824.43

302

466

IV

33,715,056

1,451,474

$ 165,855,017.49

$

6,855,640.37

328

294

Total

39,468,161

17,228,797

$ 193,268,947.87

$ 242,614,069.17

1,500

1,574

There was a 4.7% decrease in the number of trades occurring in 2012 as compared to 2011. There were 1,500 trades in 2012 as compared to 1,574 for 2011. Figure 1: Total Trade Frequency Comparison, illustrates graphically how the trade frequency has varied between 2012 and 2011.

Page |3 Figure 1: Total Trade Frequency Comparison

As illustrated in Table 3 below, there was a substantial increase in both the volume and value traded for the fourth quarter of 2012 when compared to the corresponding period in 2011. The Regular Market recorded an increase of 269% in terms of volume and 166% in terms of value as a result of takeover transaction activity. The Odd-Lot and Put Through markets both recorded declines for volume and value. It must be noted however that on October 8th, 2012 the BSE dissolved the Odd-Lot Market and instituted new trading policies (See Market Events section). While there was no activity on the Junior market, the Block Trade market recorded activity resulting from takeover transactions conducted for Republic Bank Barbados Limited (RBBL); there were no block trade transactions conducted in the fourth quarter of 2011.

Market indices for the fourth quarter recorded declines across the board. The local index recorded the greatest decline of 3.46% as nine (9) of the twenty-four (24) local securities recorded decreases in the share price, during this period, while the cross-listed index only declined by 1.23%. Market capitalization performance for the fourth quarter also mirrored that of the indices as the local and cross-listed market capitalizations fell by 2.54% and 0.76% respectively.

Table 3: Fourth Quarter Trading Activity Comparison

Market

Fourth Quarter 2012 Volume

Fourth Quarter 2011 Volume

Fourth Quarter 2012 Value

Fourth Quarter 2011 Value

% Change Volume

% Change Value

Regular

2,624,175

711,644

$ 11,134,223

$ 4,192,379

269%

166%

Odd-Lot

2,106

36,212

$

6,423

$ 157,691

-94%

-96%

270,867

703,618

$

624,831

$ 2,505,571

-62%

-75%

-

-

$

-

$

-

NA

NA

- $154,089,540

$

-

NA

NA

$ 6,855,640

2223%

2319%

Put - Through Junior Block Trade

30,817,908

Total

33,715,056

1,451,474

$65,855,017

Page |4 Economic Factors This segment of the report was compiled from the Review of Barbados' Economic Performance for 2012 and Prospects for 2013 by the Central Bank of Barbados (CBB). The review states that the economy of Barbados experienced ‘flat growth'. "The flat growth performance resulted from declines in tourism, other traded services and manufacturing.

Output in the non-traded sectors grew by only 1 percent because of fiscal spending limits and the reduction in the traded sectors. Several tourism related projects were ongoing, but foreign investment in real estate projects was down about 16 percent."

Contributions from the Tourism Sector declined as value added contracted by approximately 3.5%. Arrivals from the US and UK declined by 8.8% and 9.0% respectively. Major contributing factors to these declines were the closure of Almond Resorts Incorporated's property in St. Peter - which accounts for about one-fifth of those visitors preferring an allinclusive vacation, the UK's increase in the Air Passenger Duty of over 8% which deterred many persons from travelling abroad and reductions in the number of flights out of the US and UK by two major carriers. Arrivals from Trinidad and Tobago increased by 50% for the period January to April 2012 but slowed significantly, recording a total increase of 1.5% for the entire year. Arrivals from across the region contracted by 8.1%. These reductions were attributed to "the cessation of flights by Redjet� earlier in 2012. With many cruise lines refocusing their energies on new destinations, such as the Mediterranean, the number of cruise ship calls was reduced. This resulted in a 15% decline in the number of cruise ship arrivals for the year.

Performance in the non-trading sectors also experienced declines. Construction declined by 3%, "a reflection of declines in the import of building materials and employment in the sector of 6% and 7.7% respectively." Despite a 1% increase in the level of Food Processing and a 4.4% increase in Sugar Production, output in the Manufacturing and Agriculture sectors both contracted by 5% and 2% respectively.

"The fiscal deficit for the April-December period is estimated at 6.4% of GDP, compared with 5.2% in the same period of 2011. Revenue from personal taxes was down 10% and VAT receipts fell 2%, but there was a 9% increase in property taxes. Subsidies to government entities rose by 2%, and interest payments were higher by 4%. Capital expenditure fell by 4%."

The Central Bank of Barbados (CBB), having reviewed the International Monetary Fund's (IMF) World Economic Outlook October 2012, expects a growth rate of 0.7% or less, based on their forecasted average growth rate of Barbados' major trading partners - the US, UK and Canada - of 1.7% as well as improvements in the levels of capital expenditure. There is also the anticipation of private capital inflows of $600 million from activity in the Tourism and Construction sectors.

Domestic inflation is expected to fall to approximately 5% and no gain in employment is expected.

Page |5 Trading Activity by Market Regular The performance of the Regular Market for 2012 has shown decreases when compared to its performance in 2011.

Decreases of 50.66% and 84.67% were registered in both trading volume and value respectively. The decreases can be attributed to the reduction in the volume of trades for extraordinary transactions. In 2011, EMERA (Barbados) Holdings No. 2 Incorporated purchased 7,189,812 shares of Light and Power Holdings Limited at $25.70 while AMCL Holdings Limited purchased 2,788,400 shares of ANSA McAL (Barbados) Limited at $11.75 bringing the total volume and value of takeover transactions to 9,980,212 and $217,593,268.40 respectively. In 2012, however, Republic Bank Limited purchased 1,347,489 shares of Republic Bank Barbados Limited at $5.00 per share; the value traded was $6,737,445.00.

Excluding these transactions from the Regular Market activity for the periods under examination, the volume traded would have decreased by 5% while value traded would have increased by 1%.

Table 4: Regular Market Statistical Comparison

December 31 2012 Total Share Volume Total Share Value Average Daily Share Volume Average Daily Share Value

$

December 31 2011

% Change

7,974,092

16,162,861

-50.66%

36,529,235

238,242,191

-84.67%

31,896

64,911

-50.86%

956,796

-84.73%

146,117

$

Number of Trades

943

895

5.36%

Number of Trade Days

250

249

0.40%

5.78

-9.56%

7/11

6/12

N/A

Local Index

3,082.38

3,267.18

-5.66%

Cross – Listed Index

1,289.35

1,142.23

12.88%

730.04

722.07

1.10%

Local Market Capitalization

8,957,484,391

9,127,101,474

-1.86%

Cross-Listed Market Capitalization

2,159,097,185

1,896,819,202

13.83%

Composite Market Capitalization

11,124,381,576

11,031,870,677

0.84%

28

26

7.69%

Average Share Price Advance/Decline Ratio

Composite Market Index

Number of Listed Securities

$

5.23

$

Table 4 provides a statistical comparison of Regular Market activity for the reporting period. Improvements were seen in the Number of Trades, Advance/Decline ratio, Cross-Listed and Composite Indices and Market Caps and finally the Number of Listed Securities.

Figure 2 illustrates the breakdown of trades which occurred during 2012. There was a increase in the number of trades occurring on the Regular Market. There were 943 trades in 2012, representing a 5.36% increase when compared to the 895 trades which occurred in 2011.

Page |6 Figure 2: Trade Frequency Comparison (Regular Market)

Table 5 and Table 6 show the top traded companies for the year in terms of volume and value. Sagicor Financial Corporation and Republic Bank Barbados Limited were the only two securities to break the 1 million shares traded mark.

Table 5: Top Five Traded Companies by Volume – 2012

2012

2011

2012

2011

Volume

Volume

Value

Value

Sagicor Financial Corporation

1,593,145

1,073,982

$

3,595,268

$

2,859,780

Republic Bank Barbados Limited

1,371,291

2,800

$

6,852,925

$

15,400

FirstCaribbean International Bank

916,329

707,569

$

2,843,735

$

2,194,334

Ansa Mcal (Barbados) Limited

761,324

2,788,400

$

8,945,557

$

32,763,700

One Caribbean Media Limited

641,064

267,041

$

2,720,721

$

828,990

Company

Table 6: Top Five Traded Companies by Value – 2012

Company

2012

2011

2012

2011

Value

Value

Volume

Volume

761,324

2,788,400

Ansa Mcal (Barbados) Limited

$

8,945,557

$ 32,763,700

Republic Bank Barbados Limited

$

6,852,925

$

15,400

1,371,291

2,800

Sagicor Financial Corporation

$

3,595,268

$

2,859,780

1,593,145

1,073,982

Goddard Enterprises Limited

$

3,175,533

$

1,827,349

547,795

304,205

FirstCaribbean International Bank

$

2,843,735

$

2,194,334

916,329

707,569

For the fourth quarter, there was a 269% increase in volume and a 166% increase in value of shares traded. Republic Bank Barbados Limited was the volume and value leader for the fourth quarter as their takeover transactions accounted for 52% of the volume traded and 62% of the value traded.

Page |7 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

2012

2011

2012

2011

Volume

Volume

Value

Value

1,371,291

0

$

6,852,925

$

-

FirstCaribbean International Bank

333,329

117,530

$

1,030,029

$

366,126

One Caribbean Media Limited

242,990

8,630

$

1,154,217

$

26,209

Sagicor Financial Corporation

208,387

118,953

$

461,527

$

338,363

Banks Holdings Limited

206,536

44,575

$

619,625

$

146,617

Company Republic Bank Barbados Limited

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

Company

2012

2011

2012

2011

Value

Value

Volume

Volume

Republic Bank Barbados Limited

$

6,852,925

$

-

1,371,291

0

One Caribbean Media Limited

$

1,154,217

$

26,209

242,990

8,630

FirstCaribbean International Bank

$

1,030,029

$

366,126

333,329

117,530

Banks Holdings Limited

$

619,625

$

146,617

206,536

44,575

Sagicor Financial Corporation

$

461,527

$

338,363

208,387

118,953

Page |8 Odd Lot Market The overall performance of the Odd-Lot Market followed the same trend as that of the Regular Market. It recorded declines of 16% and 29% in terms of volume and value respectively.

Sagicor Financial Corporation was the most actively traded security in terms of volume traded. They were followed by Banks Holdings Limited and Goddard Enterprises Limited. In terms of value traded, Goddard Enterprises Limited was the top performer. Sagicor Financial Corporation and Neal and Massy Holdings Limited rounded out the top three performers in terms of value. Table 9 and Table 10 illustrate the top traded companies by volume and value.

Table 9: Top Five Traded Companies by Volume - 2012

2012

2011

2012

2011

Volume

Volume

Value

Value

Sagicor Financial Corporation

47,089

60,229

$

107,532

$

164,581

Banks Holdings Limited

22,298

9,845

$

72,144

$

37,925

Goddard Enterprises Limited

18,596

20,802

$

108,146

$

124,348

Cable & Wireless (Barbados) Limited

13,043

17,184

$

69,680

$

92,495

Insurance Corporation of Barbados Limited

11,379

11,275

$

30,069

$

33,642

Company

Table 10: Top Five Traded Companies by Value - 2012

Company

2012

2011

2012

2011

Value

Value

Volume

Volume

Goddard Enterprises Limited

$

108,146

$

124,348

18,596

20,802

Sagicor Financial Corporation

$

107,532

$

164,581

47,089

60,229

Neal & Massy Holdings Limited

$

102,481

$

141,901

7,536

10,458

Banks Holdings Limited

$

72,144

$

37,925

22,298

9,845

Cable & Wireless (Barbados) Limited

$

69,680

$

92,495

13,043

17,184

At a meeting of the Board of Directors of the BSE, held on August 23rd, 2012, the following was decided: 

There will no longer be an Odd-Lot Market;



There will be one market with each equity security listed having its own number of units/shares (Odd-Lot Limit) to be traded at any one time that would trigger a change of price on the board of the BSE;



There will be an upper limit of 10,000 units and a lower limit of 100 units;



There will be no aggregation of units in a trading day to achieve the number of units required to change the price at the end of the trading day and;



The effective date for these changes is October 8, 2012.

Page |9 As a result, fourth quarter activity on the Odd-Lot Market was limited to a total of seven (7) trades, a volume of 2,106 shares with a corresponding value of $6,423.41. Table 11 and Table 12 below illustrate the activity occurring on the Odd-Lot market prior to its closure.

Table 11: Top Traded Companies by Volume – 4th Quarter

2012

2011

2012

2011

Volume

Volume

Value

Value

1,371

1,470

$

4,262

$

4,592

Sagicor Financial Corporation

583

15,105

$

1,341

$

42,330

Goddard Enterprises Limited

152

3,068

$

821

$

18,163

Company FirstCaribbean Int'l Bank (Barbados) Limited

Table 12: Top Traded Companies by Value – 4th Quarter

Company

2012

2011

2012

2011

Value

Value

Volume

Volume

FirstCaribbean Int'l Bank (Barbados) Limited

$

4,262

$

4,592

1,371

1,470

Sagicor Financial Corporation

$

1,341

$

42,330

583

15,105

Goddard Enterprises Limited

$

821

$

18,163

152

3,068

Junior Market The number of securities listed on the Junior Market increased from two to four when Royal Fidelity (Barbados) Investment Fund Limited listed two of its sub funds on the Junior Market of the Exchange on September 20th, 2012. The names of the funds are Royal Fidelity TIGRS A2 Fund and Royal Fidelity TIGRS A3 Fund. Unfortunately, this market did record a decline in activity as trading volume and value fell by 60% and 61% respectively. Royal Fidelity TIGRS A Fund was the only security to record any trading activity. There were three (3) trades recorded totaling 2,000 shares with a value of $20,925.00. It also recorded a 2.33% decrease in price from $10.75 at the close of 2011 to $10.50 at the close of 2012.

Block Trade Market There were no block trades during the first three quarters of 2012. However, during the fourth quarter three (3) block trade transactions occurred. All transactions were approved by the BSE as each was in accordance with item four (4) of the BSE Block Trade Rules which states, “The sale and purchase of a listed security pursuant to a take-over transaction, conducted or to be conducted in accordance with the applicable laws.” Republic Bank

Barbados Limited was the sole security trading a total of 30,817,908 shares at $5.00. Trades occurred on December 13th (30,436,075), December 20th (166,591) and December 31st (215,242).

P a g e | 10 Put-through Market There was a 40% decline in volume and an associated 42% decline in the value traded for the Put-through Market in 2012. Table 13 illustrates the activity which occurred on this market for 2010.

Table 13: Put-through Market activity 2012

Company Banks Holdings Limited Barbados Farms Limited Goddard Enterprises Limited One Caribbean Media Limited Sagicor Financial Corporation Total

No. of Trades 1 1 9 1 51 63

Volume 25,000 3,235 70,322 180,846 251,866 531,269

Value $ 76,250 $ 3,235 $ 425,155 $ 958,484 $ 563,235 $ 2,026,359

Fixed Income Market There were 214 trades recorded on this market with a total volume of 23,081,000 bonds traded; the total face value of the bonds traded for 2012 was $23,004,161.50. In 2011, however, there were 121 trades, a recorded volume of 5,477,000 bonds traded with a corresponding face value of $5,555,771.30. Table 14 below, gives details on each bond traded.

Table 14: Fixed Income Market activity 2012

Security

No. of Trades

Amount Traded

Barbados Government Debenture 4.25% 2013

1

1,000

Barbados Government Debenture 4.75% 2016

9

160,000

Barbados Government Debenture 5.25% 2013

2

6,000

Barbados Government Debenture 5.875% 2018

4

80,000

Barbados Government Debenture 6% 2013

1

100,000

Barbados Government Debenture 6.125% 2021

7

33,000

Barbados Government Debenture 6.25% 2019

5

9,000

Barbados Government Debenture 6.25% 2022

2

2,000

Barbados Government Debenture 6.625% 2018

1

10,000

Barbados Government Debenture 6.625% 2020

9

9,712,000

Barbados Government Debenture 6.75 %2021

1

4,000

Barbados Government Debenture 675% 2022

1

15,000

Barbados Government Debenture 6.875% 2023

6

2,006,000

Barbados Government Debenture 7% 2017

8

535,000

Barbados Government Debenture 7% 2023

11

20,000

Barbados Government Debenture 7.125% 2026

20

21,000

Barbados Government Debenture 7.375% 2027

6

7,003,000

Barbados Government Debenture 7.5% 2012

1

100,000

Barbados Government Debenture 7.5% 2026

1

1,000

Barbados Government Debenture 7.75% 2031

3

3,000

P a g e | 11 Security Barbados Government Debenture 8% 2012

No. of Trades

Amount Traded

2

10,000

Barbados Government Debenture 8.25% 2018

1

200,000

Barbados Government Debenture 8.5% 2018

12

314,000

Barbados Government T/Note 4.25% 2013

2

103,000

Barbados Government T/Note 4.375% 2014

1

10,000

Barbados Government T/Note 4.5% 2015

2

900,000

Barbados Government T/Note 5.875% 2015

3

6,000

Barbados Government T/Note 6% 2016

47

250,000

Barbados Government T/Note 6% 2017

3

8,000

Barbados Government T/Note 6.125% 2021

2

2,000

Barbados Government T/Note 6.25% 2018

10

34,000

Barbados Government T/Note 6.5% 2016

2

8,000

Barbados Government T/Note 6.625% 2019

7

18,000

Barbados Government T/Note 7.25% 2014

4

265,000

Barbados Government T/Note 7.5% 2012

1

1,000

Barbados Government T/Note 7.75% 2013

8

20,000

Barbados Government T/Note 7.875% 2015

4

410,000

Barbados Government T/Note 8% 2014 TOTALS

4

701,000

214

23,081,000

P a g e | 12 Index and Market Capitalization Movement There were increases in both the Cross-Listed (12.88%) and Composite (1.10%) indices for 2012. Their corresponding Market Capitalization values for 2012 also recorded increases of 13.83% and 0.84% respectively. The Local Index and Market Capitalization performance, however, recorded decreases of 5.66% and 1.86% respectively.

Table 15 illustrates the year on year changes in both index and market capitalization.

Table 15: Index and Market Capitalization - year on year

Index

30-Dec-12

30-Dec-11

Local

3,082.38

3,267.18

-5.66%

Cross Listed

1,289.35

1,142.23

12.88%

730.04

722.07

1.10%

30-Dec-12

30-Dec-11

% Change

Local

8,957,484,391

9,127,101,474

-1.86%

Cross Listed

2,159,097,185

1,896,819,202

13.83%

Composite

11,124,381,576

11,031,870,677

0.84%

Composite Market Capitalization

% Change

For the fourth quarter of 2012, all market measures recorded declines. The Local Index and Market Capitalization measures recorded the largest declines of 3.46% and 2.54% respectively. These decreases are the result of the decline in share prices of nine (9) locally listed securities. Table 16, below, illustrates the fourth quarter index and market capitalization performance.

Table 16: Index and Market Capitalization - 4th Quarter

Index

30-Dec-12

30-Sep-12

% Change

Local

3,082.38

3,192.87

-3.46%

Cross Listed

1,289.35

1,305.35

-1.23%

730.04

749.24

-2.56%

30-Dec-12

30-Sep-12

% Change

8,957,484,390.97

9,190,555,963.21

-2.54%

Cross Listed

2,159,097,185.35

2,175,651,106.10

-0.76%

Composite

11,124,381,576.32

11,374,007,069

-2.19%

Composite Market Capitalization Local

Figure 3 below, illustrates index movement over the one year period 2011 – 2012. It clearly displays the sharp increase in cross-listed index performance in the latter half of the year. This was the result of the traded price of One Caribbean Media Limited (OCM) increasing from $4.11 to $5.00; a difference of eighty-nine (89) cents. OCM experienced excellent share price appreciation having opened 2012 trading at $2.95 and closing at $4.75; an increase $1.80.

P a g e | 13 Figure 3: Index Movement for 2011 – 2012

Advancers Decliners – 2012 For the year under review, seven (7) of the twenty-eught (28) listed securities advanced, eleven (11) declined, three (3) remained unchanged, seven (7) did not trade of which two (2) were newly listed securities1.

Neal and Massy Holdings Limited had the greatest share price appreciation for 2012 climbing 61.02%. Jamaica Money Market Brokers Limited was the only other security that had a share appreciation greater than 10% with 50%. The five remaining securities that experienced share price appreciation were FirstCaribbean International Bank with 5.17%, Sagicor Financial Corporation Pref 6.5% and Insurance Corporation Limited both with 4%, Neal and Massy Holdings Limited with 3.31% and Cave Shepherd and Company Limited with 1.74%.

Five (5)companies experienced declines in excess of 10% in 2012. Almond Resorts Incorporated suffered the largest decline as their share price fell by 60% at the end of 20122. Barbados Dairy Industries Limited, Barbados Farms Limited, Sagicor Financial Corporation and Fortress Caribbean Property Fund were the other companies to experience declines in excess of 10%.

1

The Barbados Stock Exchange (BSE) was pleased to announce that Royal Fidelity (Barbados) Investment Fund Limited listed two of its sub funds on the Junior Market of the Exchange effective September 20th, 2012. The names of the funds are Royal Fidelity TIGRS A2 Fund (750,000 @ $10.00) and Royal Fidelity TIGRS A3 Fund (450,000 @ $10.00).

2 In April 2012, Neal and Massy Holdings Limited, the parent company of Almond Resorts Inc., announced the closure of the Almond Beach Village Resort on April 30, 2012 and the impending sale of the other two properties in Barbados under the Almond umbrella Almond Beach Club and Almond Casuarina Beach Club due to the company's inability to meet its debt obligations.

P a g e | 14 Table 17: Total Trading Activity by Company (Regular and Junior Market only)

SECURITY Ansa Mcal (Barbados) Limited

Year-end 2012

Year-end 2012

Volume

Value

761,324

$

CLOSING PRICE December 31 2012

CLOSING PRICE December 31 2011

% Change

8,945,557

11.75

11.75

0.00%

Almond Resorts Inc.

10,000

$

5,000

0.50

1.25

-60.00%

Bico Industries Ltd.

18,773

$

34,726

1.60

1.86

-13.98%

Barbados Dairy Industries Ltd.

38,719

$

203,802

3.00

5.29

-43.29%

Barbados Farms Ltd.

47,717

$

52,944

1.00

1.50

-33.33%

1,371,291

$

6,852,925

5.00

5.50

-9.09%

612,300

$

1,900,284

3.00

3.29

-8.81%

0

$

-

7.58

7.58

0.00%

Fortress Caribbean Property Fund

555,217

$

480,629

0.80

1.00

-20.00%

Cave Shepherd and Co. Ltd.

188,624

$

877,039

4.68

4.60

1.74%

Cable and Wireless Barbados Ltd

201,875

$

1,068,468

5.00

5.34

-6.37%

FirstCaribbean International Bank

916,329

$

2,843,735

3.05

2.90

5.17%

Goddard Enterprises Ltd.

547,795

$

3,175,533

5.40

6.00

-10.00%

Insurance Corporation Of Barbados Ltd.

156,252

$

416,065

2.60

2.50

4.00%

Jamaica Money Market Brokers Limited

1,000

$

150

0.15

0.10

50.00%

47,593

$

1,222,589

25.70

25.70

0.00%

0

$

-

3.11

3.11

0.00%

Neal And Massey Holdings Ltd.

135,325

$

1,852,927

14.05

13.60

3.31%

One Caribbean Media Limited

641,064

$

2,720,721

4.75

2.95

61.02%

Sagicor Financial Corporation Pref 6.5%

128,500

$

268,370

2.08

2.00

4.00%

1,593,145

$

3,595,268

2.23

2.87

-22.30%

0

$

-

0.80

0.80

0.00%

1,249

$

12,502

10.01

10.01

0.00%

0

$

-

8.00

8.00

0.00%

2,000

$

20,925

10.50

10.75

-2.33%

Royal Fidelity TIGRS A1 Fund (J)

0

$

-

10.00

10.00

0.00%

Royal Fidelity TIGRS A2 Fund (J)

0

$

-

10.00

-

NA

Royal Fidelity TIGRS A3 Fund (J)

0

$

-

10.00

-

NA

7,976,092

$

36,550,160

Republic Bank Barbados Limited Banks Holdings Ltd. Barbados Shipping & Trading Co. Ltd.

Light and Power Holdings Ltd. Light And Power Holdings Ltd 5.5% Pref

Sagicor Financial Corporation Trinidad Cement Ltd. West India Biscuit Co. Ltd. The West Indies Rum Distilleries Ltd. Royal Fidelity TIGRS A Fund (J)

*(J) Denotes Junior Market

For the fourth quarter, three (3) securities advanced, nine (9) declined, four (4) remained unchanged and twelve (12) did not trade of which two were new listings. This is compared to two (2) securities advanced, seven (7) declined, five (5) remained unchanged and twelve (12) did not trade for the corresponding period in 2011.

One Caribbean Media Limited (33.8%), Neal and Massy Holdings Limited (3.31%) and Sagicor Financial Corporation (1.36%) were the only companies to register share price appreciation for the quarter. Barbados Dairy Industries Limited and BICO Limited were the only two companies to record declines in excess of 10%; 43.29% and 13.98% respectively.

P a g e | 15 Table 188: Fourth Quarter Trading Activity by Company (Regular and Junior Market only)

SECURITY

4th Quarter 2012

4th Quarter 2012

CLOSING PRICE

CLOSING PRICE

Volume

Value

December 31 2012

September 30 2012

% Change

Ansa Mcal (Barbados) Limited

0

$

-

11.75

11.75

0.00%

Almond Resorts Inc.

0

$

-

0.50

0.50

0.00%

Bico Industries Ltd.

739

$

1,182

1.60

1.86

-13.98%

Barbados Dairy Industries Ltd.

446

$

1,338

3.00

5.29

-43.29%

Barbados Farms Ltd.

400

$

480

1.00

1.00

0.00%

1,371,291

$

6,852,925

5.00

5.50

-9.09%

206,536

$

619,625

3.00

3.25

-7.69%

Republic Bank Barbados Limited Banks Holdings Ltd. Barbados Shipping & Trading Co. Ltd.

0

$

-

7.58

7.58

0.00%

122,294

$

100,809

0.80

0.85

-5.88%

1,800

$

8,025

4.68

4.68

0.00%

Cable and Wireless Barbados Ltd

39,972

$

205,329

5.00

5.30

-5.66%

FirstCaribbean International Bank

333,329

$

1,030,029

3.05

3.12

-2.24%

Goddard Enterprises Ltd.

38,625

$

208,778

5.40

5.50

-1.82%

Insurance Corporation Of Barbados Ltd.

18,308

$

47,628

2.60

2.69

-3.35%

Jamaica Money Market Brokers Limited

0

$

-

0.15

0.15

0.00%

1,546

$

39,181

25.70

25.70

0.00%

0

$

-

3.11

3.11

0.00%

Neal And Massey Holdings Ltd.

27,012

$

379,420

14.05

13.60

3.31%

One Caribbean Media Limited

242,990

$

1,154,217

4.75

3.55

33.80%

10,500

$

23,730

2.08

2.08

0.00%

208,387

$

461,527

2.23

2.20

1.36%

Trinidad Cement Ltd.

0

$

-

0.80

0.80

0.00%

West India Biscuit Co. Ltd.

0

$

-

10.01

10.01

0.00%

The West Indies Rum Distilleries Ltd.

0

$

-

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

-

NA

Royal Fidelity TIGRS A3 Fund (J)

0

$

-

10.00

-

NA

$ 11,134,223

-

-

Fortress Caribbean Property Fund Cave Shepherd and Co. Ltd.

Light and Power Holdings Ltd. Light And Power Holdings Ltd 5.5% Pref

Sagicor Financial Corporation Pref 6.5% Sagicor Financial Corporation

2,624,175 *(J) Denotes Junior Market

P a g e | 16 Historical Company Trading Statistics As illustrated in Table 19, four (4) securities increased in price while nineteen (19) declined over the last five years. It must be noted, however, that the declines commenced when the effects of the global financial crisis began to affect the economies of the Caribbean region towards the end of 2008.

Table 19: Historical Five Year Price Range CLOSING PRICE

CLOSING PRICE

CLOSING PRICE

CLOSING PRICE

CLOSING PRICE

CLOSING PRICE

31.12.2012

31.12.2011

31.12.2010

31.12.2009

31.12.2008

31.12.2007

Almond Resorts Incorporated

$0.50

$1.25

$1.55

$1.55

$1.90

$2.13

-77%

Ansa McAL (Barbados) Limited

$11.75

$11.75

$14.80

$16.00

$16.19

$20.14

-42%

Banks Holdings Limited

$3.00

$3.29

$4.00

$4.00

$3.99

$4.30

-30%

Barbados Dairy Industries Limited

$3.00

$5.29

$5.29

$5.49

$5.50

$7.34

-59%

Barbados Farms Limited

$1.00

$1.50

$2.49

$2.05

$2.50

$4.00

-75%

Republic Bank Barbados Limited

$5.00

$5.50

$5.57

$5.80

$6.30

$6.63

-25%

Barbados Shipping & Trading Company Ltd.

$7.58

$7.58

$7.58

$7.60

$8.50

$8.80

-14%

BICO Limited

$1.60

$1.86

$1.47

$1.86

$1.86

$2.00

-20%

Cable and Wireless (Barbados) Limited

$5.00

$5.34

$5.40

$5.79

$5.60

$4.00

25%

Cave Shepherd and Company Limited

$4.68

$4.60

$4.48

$6.20

$7.00

$6.05

-23%

FirstCaribbean International Bank Limited

$3.05

$2.90

$3.00

$2.75

$3.32

$3.95

-23%

Fortress Caribbean Property Fund

$0.80

$1.00

$1.14

$1.00

$1.55

$1.52

-47%

Goddard Enterprises Limited

$5.40

$6.00

$5.90

$6.00

$7.09

$6.45

-16%

Insurance Corporation Of Barbados Ltd.

$2.60

$2.50

$3.05

$3.01

$4.18

$3.85

-32%

Jamaica Money Market Brokers Limited

$0.15

$0.10

$0.10

$0.15

$0.39

$0.55

-73%

$25.70

$25.70

$12.00

$11.52

$11.42

$10.55

144%

$3.11

$3.11

$3.11

$3.10

$3.10

$3.00

4%

$14.05

$13.60

$12.50

$15.49

$15.85

$15.17

-7%

One Caribbean Media Limited

$4.75

$2.95

$3.10

$3.10

$4.40

$6.25

-24%

Sagicor Financial Corporation 6.5% Pref

$2.08

$2.00

-

NA

Sagicor Financial Corporation

$2.23

$2.87

$2.90

$3.50

$3.51

$5.20

-57%

Trinidad Cement Limited

$0.80

$0.80

$0.80

$2.49

$2.50

$2.50

-68%

$10.01

$10.01

$10.01

$9.14

$9.14

$9.20

9%

$8.00

$8.00

$8.50

$8.50

$8.50

$8.50

-6%

$10.50

$10.75

$10.61

$

-

$

-

$

-

NA

$10.00

$10.00

$10.00

$

-

$

-

$

-

NA

SECURITY

Light and Power Holdings Limited Light And Power Holdings Ltd 5.5% Pref Neal And Massy Holdings Limited

West India Biscuit Company Limited The West Indies Rum Distilleries Limited Royal Fidelity TIGRS A Fund Royal Fidelity TIGRS A1 Fund

$

-

$

-

$

-

$

% Change

Royal Fidelity TIGRS A2 Fund

3

$10.00

$

-

$

-

$

-

$

-

$

-

NA

Royal Fidelity TIGRS A3 Fund

4

$10.00

$

-

$

-

$

-

$

-

$

-

NA

3 4

th

Royal Fidelity TIGRS A2 Fund (750,000 @ $10.00) listed September 20 , 2012. th Royal Fidelity TIGRS A3 Fund (450,000 @ $10.00) listed September 20 , 2012.

P a g e | 17 Market Events – 2012 On February 9th, 2012, 761,324 shares in ANSA McAl (Barbados) Limited were traded at $11.75 to complete the transactions pursuant to AMCL Holdings Limited's takeover offer for ANSA McAL (Barbados) Limited.

On April 4th, 2012, Barbados Dairy Industries Limited (BDI) made the following announcement:  Shareholders of Barbados Dairy Industries Limited (the 'Company') approved the de-listing of the Company's shares from the Barbados Stock Exchange ('BSE') at an Extraordinary General Meeting of Shareholders on 27 May, 2010. Pursuant to this decision, Barbados Dairy Industries Limited will delist its stock from the Barbados Stock Exchange ('BSE') as of the close of business on Friday, 18 May, 2012. After de-listing, shareholders will no longer be able to buy and sell the Company's shares via the BSE. In connection with the de-listing, the Company will make an offer to shareholders to repurchase up to 5% of the outstanding shares in BDIL, excluding shares owned by Banks Holdings Limited at $5.29 per share (the 'Offer'). NOTICE IS HEREBY GIVEN that, in accordance with Sections 106 and 108 of the Companies Act, the Directors have fixed Monday, 16 April, 2012, as the date of record for the determination of those shareholders entitled to receive the Offer. All persons who are shareholders at the close of business on that date shall be so entitled.  A total of five (5) trades were conducted in which 38,435 shares were traded at the offer price of $5.29.

On May 11th, 2011, the following joint notice was published in the BSE Trading Report with regards to the initial BDI announcement:  The Barbados Stock Exchange (the ‘BSE’) confirms that the Offering Process pursuant to, and as stated in, the Barbados Dairy Industries’ circular to its shareholders dated April 17, 2012 was in compliance with the existing regulations governing the delisting of securities. The BSE is, however, in the process of settling new guidelines and procedures for the delisting and repurchasing of securities which should better provide for a delisting process in a manner which takes account of the practical considerations of listed companies, minority shareholders and the regulatory environment. The Barbados Stock Exchange welcomes the decision of the Directors of Barbados Dairy Industries Limited to defer the delisting of its securities until after the new guidelines are published.

On May 24th, 2012, the BSE issued the following statement to the market:  “The Barbados Stock Exchange Inc. (BSE) wishes to advise that Barbados Shipping & Trading Company Limited (BS&T) will be de-listed from the Trinidad and Tobago Stock Exchange Limited effective Monday 28th May, 2012.The BSE has applied to the Financial Services Commission (FSC) for a delisting Order as per section 38 of the Securities Act, 2001 at the request of the BS&T. The BSE is awaiting the approval from the FSC for the Order.

May 23, 2012.”

Effective July 1st, 2012, Barbados National Bank Incorporated (BNB) was renamed Republic Bank (Barbados) Limited (RBBL). Also effective on this date, BNB Finance and Trust Corporation, BNB Funds Incorporated, BNB Income Fund, BNB Capital Growth Fund and BNB Property Fund were renamed Republic Bank Finance & Trust (Barbados) Corporation, Republic Funds (Barbados) Incorporated, Republic Income Fund, Republic Capital Growth Fund and Republic Property Fund respectively.

P a g e | 18 On September 20th, 2012, Royal Fidelity (Barbados) Investment Fund Limited has listed two of its sub funds on the Junior Market of the Exchange effective September 20th, 2012. Royal Fidelity TIGRS A2 Fund listed 750,000 at a value of $10.00 per share and Royal Fidelity TIGRS A3 Fund listed 450,000 at a value of $10.00 per share.

On October 1st, 2012, the BSE advised the general public of the following:  The Barbados Stock Exchange Inc. (BSE) wishes to advise the general public of the following changes to the Odd-Lot Limits approved by the Board of Directors of the BSE at a meeting held on August 23, 2012: There will no longer be an Odd-Lot Market, there will be one market with each equity security listed having its own number of units/shares (Odd-Lot Limit) to be traded at any one time that would trigger a change of price on the board of the BSE, there will be an upper limit of 10,000 units and a lower limit of 100 units, there will be no aggregation of units in a trading day to achieve the number of units required to change the price at the end of the trading day and, the effective date for these changes is October 8, 2012.

The thresholds per security are as follows:

SECURITY

VOLUME LIMIT

SECURITY

VOLUME LIMIT

ALMOND RESORTS INCORPORATED

3,500

LIGHT & POWER HOLDINGS LIMITED 5.5% Pref

100

BANKS HOLDINGS LIMITED

4,000

ANSA McAL (BARBADOS) LIMITED

800

B'DOS DAIRY INDUSTRIES LIMITED

300

SAGICOR FINANCIAL CORPORATION 6.5% Pref

7,500

B'DOS FARMS LIMITED

1,500

SAGICOR FINANCIAL CORPORATION

REPUBLIC BANK BARBADOS LIMITED

6,000

THE WEST INDIES RUM DISTILLERY LIMITED

300

B'DOS SHIPPING & TRADING COMPANY LIMITED

5,000

WEST INDIA BISCUIT COMPANY LIMITED

300

BICO INDUSTRIES LIMITED

100

JAMAICA MONEY MARKET BROKERS LIMITED

10,000

10,000

CABLE & WIRELESS (BARBADOS) LIMITED

9,000

NEAL & MASSY HOLDINGS LIMITED

6,500

CAVE SHEPHERD & COMPANY LIMITED

1,500

ONE CARIBBEAN MEDIA LIMITED

4,000

FIRSTCARIBBEAN INTERNATIONAL LIMITED

10,000

TRINIDAD CEMENT LIMITED

10,000

FORTRESS CARIBBEAN PROPERTY FUND

3,500

ROYAL FIDELITY TIGRS A FUND

100

GODDARD ENTERPRISES LIMITED

3,500

ROYAL FIDELITY TIGRS A1 FUND

100

INSURANCE CORPORATION OF BARBADOS LIMITED

2,500

ROYAL FIDELITY TIGRS A2 FUND

100

LIGHT & POWER HOLDINGS LIMITED

1,000

ROYAL FIDELITY TIGRS A3 FUND

100

On November 6th, 2012, Republic Bank Limited, the majority shareholder of Republic Bank (Barbados) Limited, announced the following:

P a g e | 19 



"that it has received the required regulatory approvals from the Government of Barbados, the Central Bank of Barbados and the Barbados Financial Services Commission to make an offer for the remaining shares of Republic Bank (Barbados) Limited. Republic Bank Limited currently holds 65.14% of the shares of the Barbados subsidiary.

The offer at $5.00 per share opens today (Tuesday November 6th 2012) and will close on Tuesday 4th December 2012."

As at December 31st, 2012, a total of seven (7) trades were conducted in which 32,165,397 shares were traded with a total value of $160,826,985.00.

P a g e | 20 The Regulatory Roundup – 2012 This new section of the Annual Report features the activities of the BSE’s Compliance Department during the year 2012 and outlines its objectives for 2013.

Notices to the Market 

 

Notice to Members 2012-1 – Guidelines for due diligence procedures for offers to shareholders of companies listed on the board of the Barbados Stock Exchange Inc. This notice revokes and replaces Notice to Members 2011-1.

Notice to Members 2012-2 – Cross Border Remittance.

Notice to Listed Companies 2012-1 – Enforcement and Compliance – The Corporate Governance Recommendations and Insider Trading Guidelines.

Compliance Review of Brokers 

Compliance reviews of two member brokers conducted.

Consultation with the Market  

Meeting held with listed companies to discuss the BSE Corporate Governance Recommendations.

Power Point Presentation entitled: BSE Corporate Governance Recommendations: Improved Standards of Corporate Governance for Publicly Listed Companies, drafted by the BSE and presented to listed companies.

Success of the Regulatory Objectives for 2012-2013 Regulatory objectives in respect of the rules of the BSE and Corporate Governance Recommendations which were set for the 2012-2013 were pursued by: 



The BSE making further proposals to the Financial Services Commission (‘FSC’) for further amendments to the rules of the BSE, which are necessary to provide greater protection to investors, and increase the effectiveness of the rules in our local market; and The BSE engaging in a consultation period with the listed companies on the proposed BSE Corporate Governance Recommendations.

The above-mentioned regulatory objectives are therefore works in progress. However, we believe we stand poised to have the new rules of the BSE made enforceable in this 2013 year. Similarly, the BSE Corporate Governance Recommendations should be reissued to the listed companies in the 2013 year.

The completion of these objectives will mean enhanced regulatory oversight and a more transparent and secure investment environment for Barbados. Accordingly, the completion of these objectives is a principal objective for the BSE for 2013.

P a g e | 21 The BSE will engage with the FSC on the question of a suitable anti-money laundering policy to guide our local market.

The BSE has already issued Notice to Members 2012-1 (– Guidelines for due diligence procedures for offers to shareholders of companies listed on the board of the BSE) and will be reviewing this policy in this 2013 year for its effectiveness in our local market. Further anti money laundering guidelines will be issued to the market in 2013.

Major Regulatory Objectives for 2013-2014    

Overseeing the implementation the first International Securities Market in Barbados.

Drafting rules to further develop the Junior Market of the BSE. Improving the awareness of the regulatory powers of the BSE amongst brokers, listed companies, legal practitioners, and the general public.

Developing the website of the BSE as a source of regulatory information for use by investors, brokers, listed companies, and the general public. The website of the BSE will also function as a major tool for regulation of the market.

P a g e | 22 Conclusion Trading activity on the board of the BSE for 2012 can best be described as stable. The takeover activity which occurred in the last quarter of 2012 had positive effects of both volumes and values traded, however, these transactions were not sufficient to result in any improvements in overall performance versus the 2011 figures. It must be noted, however, that despite this stable performance, improvements were seen in the Cross-Listed and Composite market measures as the share prices of some securities started to improve.

An examination of the index performance of some exchanges across the globe showed positive results suggesting a return of both market stability and shareholder confidence despite the many challenges still being faced by many of these economies. Table 20 below, illustrates that all of the international exchanges have experienced increases in their index measure. The Tokyo Stock Exchange's Nikkei 225 index recorded the largest increase of 22.94%, followed closely by the Stock Exchange of Hong Kong's Hang Seng Index which recorded an increase of 22.91%. In the Region, the Eastern Caribbean Stock Exchange (ECSE) the Trinidad and Tobago Stock Exchange (TTSE) and the Barbados Stock Exchange Inc. (BSE) recorded increases of 7.78%, 5.14% and 1.10% respectively. The Jamaica Stock Exchange, however, recorded a decline of 3.35%.

Table 20: Year on Year Index Comparison

Index Name

Region/Exchange

Closing Dec 31 2012

Closing Dec 31 2011

Nasdaq Dow Jones Industrial Average S&P 500 FTSE 100 Nikkei 225 Hang Seng BSE Composite Index JSE Market Index TTSE Composite Index ECSE Index

NASDAQ NASDAQ and New York Stock Exchange New York Stock Exchange London Stock Exchange Tokyo Stock Exchange Stock Exchange of Hong Kong Barbados Stock Exchange Jamaica Stock Exchange Trinidad and Tobago Stock Exchange Eastern Caribbean Stock Exchange

2,660.90 13,104.14 1,426.19 5,897.81 10,395.18 22,656.92 730.04 92,101.22 1,064.98 156.07

2,605.16 12,217.56 1,257.60 5,572.28 8,455.35 18,434.39 722.07 95,297.20 1,012.87 144.80

% Change 2012 2.14% 7.26% 13.41% 5.84% 22.94% 22.91% 1.10% -3.35% 5.14% 7.78%

The performance of international markets is encouraging because of the close links between market performance and economic performance. If these trends continue and there is a resurgence of positive economic activity in these economies, our closely linked economies in the region are sure to see improvements in 2013. However, we must remain cognizant of our dependency on these international economies and the potential for both positive and negative impacts as well.