1st Quarter Report 2012 Overview Overall trading volume decreased by 78%, while trading value decreased by 93% for the 1st quarter of 2012. The Regular and Put-Through Markets were the two markets to register decreases in trading activity. Regular Market activity fell by 79% in terms of volume and by 94% in value and the Put-Through Market experienced a decreases of 35% and 29% in terms of volume and value respectively. Odd-Lot Market activity showed minor increases of 2% for volume and 3% for value while the total number of trades increased by 1.35% from 446 in 2011 to 452 in 2012. There were also increases in all market indices with the exception of the local index which recorded a minor decrease of 0.18% when compared to its December 31st 2011 figure. All market capitalization measures recorded increases when compared to their respective positions at the close of 2011. It must be noted, however, that the decline in market activity can be attributed to a decrease in the number of significant transactions on the Board of the BSE for the first quarter of 2012. To date there has only been one significant transaction for ANSA McAL (Barbados) Limited. During the first quarter of 2011 AMCL Holdings Limited commenced the purchase of all remaining shares of ANSA McAL (Barbados) Limited while EMERA (Barbados) Holdings No. 2 Incorporated also commenced similar action to purchase all outstanding common shares of Light and Power Holdings Limited; there were a total of 12 significant transactions recorded in the first quarter of 2011. Table 1 – Year to date Statistics
Market
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
% Change
% Change
2012 Volume
2011 Volume
2012 Value
2011 Value
Volume
Value
Regular
2,347,651
11,092,623
$
13,993,341
$
219,324,630
-79%
-94%
Odd-Lot
48,575
47,435
$
222,328
$
214,863
2%
3%
Put - Through
67,960
104,030
$
404,146
$
569,493
-35%
-29%
-
-
$
-
$
-
NA
NA
-
-
$
-
$
-
NA
NA
2,464,186
11,244,088
$
14,619,815
$
220,108,986
-78%
-93%
Junior Block Trade Total
BSE 1st Quarter Report 2012
Page |2
Regular Market
Regular Market volume and value decreased significantly for the first quarter of 2012 when compared to the same period in 2011. Trading volume decreased by 78.84% from 11,092,623 in 2011 to 2,347,651 in 2012; whereas trading value decreased by 93.62%. During the period under review there was also a 9.35% decrease in the number of trades occurring in the market and a 1.59% increase in the number of trading days. A snapshot of the advance-decline ratio at the end of the 1st quarter of 2012 showed declines, with only 5 securities advancing and 4 declining versus 8 securities advancing in price and 4 declining at the 1st quarter close of 2011. As mentioned previously, the two takeover transactions which occurred had significant impact on the activity in the Regular Market in 2011. These transactions resulted in the trading of a total of 9,749,238 shares at a value of $214,008,578.85. At the close of the first quarter of 2012 this single significant transaction resulted in volume of 761,324 shares in ANSA McAL (Barbados) Limited trading with a value of $8,945,557.00 Removing these significant transactions would have resulted in an increase in trading volume on the Regular Market of 18% but a decrease in trading value of 5% for 2012 when compared to the closing figures less the significant transactions that took place during the first quarter of 2011. st
Table 2 – 1 Quarter Regular Market Performance – Year on Year
Total Share Volume Total Share Value Average Daily Share Volume Average Daily Share Value Number of Trades Number of Trade Days Average Share Price Advance/Decline Ratio Local Index Cross – Listed Index Composite Market Index Local Market Capitalization Cross-Listed Market Capitalization Composite Market Capitalization Number of Listed Securities
31-Mar-12
31-Mar-11
2,347,651 13,993,341 36,682 $ 218,646 252 64 $ 4.99 5/4 3,261.28 1,162.64 725.94 9,319,483,623 1,987,204,618 11,314,638,241 26
11,092,623 219,324,630 176,073 $ 3,481,343 278 63 $ 5.21 8/4 3,358.59 1,145.29 735.60 9,247,207,120 1,896,785,877 11,151,858,997 25
% Change -78.84% -93.62% -79.17% -93.72% -9.35% 1.59% -4.35% N/A -2.90% 1.51% -1.31% 0.78% 4.77% 1.46% 4.00%
BSE 1st Quarter Report 2012
Page |3
Sagicor Financial Corporation was once again the most actively traded security on the market accounting for 28% of the number of trades occurring in the market. FirstCaribbean International Bank Limited was the second most actively traded security, accounting for 18% of the number of trades for the quarter in this market. Figure 1 below illustrates the number of trades occurring on the Regular Market by Security.
st
Figure 1 – No. of Trades – 1 Quarter 2011
Table 3 and Table 4 below show the top traded companies for the quarter based on volume and value respectively. ANSA McAL (Barbados) Limited was the top performer for both volume and value traded. Sagicor Financial Corporation was second in terms of volume traded while Goddard Enterprises Limited was second in terms of value traded. Table 3 – Top five traded companies by volume
2012
2011
2012
2011
Volume
Volume
Value
Value
ANSA MCAL (BARBADOS) LIMITED
761,324
2,619,845
$
8,945,557
$ 30,783,179
SAGICOR FINANCIAL CORPORATION
447,727
252,200
$
1,063,788
$
765,172
FIRSTCARIBBEAN INTERNATIONAL BANK
329,643
295463
$
1,023,356
$
913,025
FORTRESS CARIBBEAN PROPERTY FUND
265,781
156,661
$
238,260
$
179,435
GODDARD ENTERPRISES LIMITED
253,926
167,300
$
1,523,556
$
1,002,737
Company
BSE 1st Quarter Report 2012
Page |4
Table 4 – Top five traded companies by value
2012
2011
2012
2011
Value
Value
Volume
Volume
ANSA MCAL (BARBADOS) LIMITED
$ 8,945,557
$30,783,179
761,324
2,619,845
GODDARD ENTERPRISES LIMITED
$ 1,523,556
$ 1,002,737
253,926
167,300
SAGICOR FINANCIAL CORPORATION 6.5% PREF
$ 1,063,788
$
765,172
447,727
252200
FIRSTCARIBBEAN INTERNATIONAL BANK
$ 1,023,356
$
913,025
329,643
295,463
BANKS HOLDINGS LIMITED
$
$
210,885
87,585
53,954
Company
292,275
Odd-Lot Market There was a 2% increase in trading volume and an associated 3% increase in value traded for the first quarter of 2012 on the Odd-Lot Market. The number of trades occurring on this market also increased by 15% from 166 in 2011 to 191 in 2012. Table 5 and Table 6 show the top traded companies for the quarter based on volume and value respectively. Sagicor Financial Corporation was again the volume leader accounting for 31% of the total volume traded; up from 30% at the end of the 1st quarter in 2011. Goddard Enterprises Limited was the value leader, accounting for 24% of the total value; up from 10% in 2011. Sagicor Financial Corporation was also the most actively traded security accounting for 26% of the total activity in terms of the number of trades. Table 5 – Top five traded companies by volume
2012
2011
2012
2011
Volume
Volume
Value
Value
15,067
14,137
$ 36,621
$
42,831
GODDARD ENTERPRISES LIMITED
8,717
3,607
$ 52,302
$
21,285
CABLE & WIRELESS (BARBADOS) LIMITED
8,375
5,969
$ 44,775
$
32,194
INSURANCE CORPORATION OF BARBADOS LIMITED
4,478
3,243
$ 12,038
$
9,886
FIRSTCARIBBEAN INTERNATIONAL BANK
3,165
3,425
$
$
10,103
Company SAGICOR FINANCIAL CORPORATION
9,887
Table 6 – Top five traded companies by value
2012
2011
2012
2011
Value
Value
Volume
Volume
GODDARD ENTERPRISES LIMITED
$52,302
$ 21,285
8,717
3,607
CABLE & WIRELESS (BARBADOS) LIMITED
$44,775
$ 32,194
8,375
5,969
SAGICOR FINANCIAL CORPORATION
$36,621
$ 42,831
15,067
14,137
NEAL AND MASSY HOLDINGS LIMITED
$33,850
$ 51,836
2,489
3,887
LIGHT & POWER HOLDINGS LIMITED
$17,193
$
669
200
Company
5,140
BSE 1st Quarter Report 2012
Page |5
Junior Market, Block Trade Market & Put Through Market There was no trading activity recorded for the Junior or Block Trade Markets for the 1st Quarter of 2012. The Put Through Market did, however, record declines of 35% in terms of volume and 29% in terms of value. Table 7 below illustrates the activity which occurred on this market as at March 31st, 2012. st
Table 7: Put-through Market Activity - 1 Quarter 2012
Company
Volume
Value
Goddard Enterprises Limited
65,867
$ 398,202.00
Sagicor Financial Corporation
2,093
$ 5,944.12
Fixed Income Market There were 36 trades recorded on this market with a total volume of 3,489,500 bonds traded as compared to the 35 trades and 2,475,000 bonds traded at the close of the first quarter of 2011.. Table 8 below, gives details on each bond traded as at March 31st, 2012. st
Table 8: Fixed Income Market activity 1 Quarter 2012
Security
No. of Trades
Amount Traded
Barbados Government Debenture 4.75% 2016
2
2,000
Barbados Government Debenture 5.875% 2018
2
2,000
Barbados Government Debenture 6.125% 2021
3
4,000
Barbados Government Debenture 6.25% 2022
2
2,000
Barbados Government Debenture 6.625% 2020
3
2,800,000
Barbados Government Debenture 6.75% 2022
1
15,000
Barbados Government Debenture 7% 2017
2
510,000
Barbados Government Debenture 7% 2023
4
8,000
Barbados Government Debenture 7.125% 2026
1
1,000
Barbados Government Debenture 7.375% 2027
1
2,000
Barbados Government Debenture 8% 2012
2
10,000
Barbados Government T/Note 4.25% 2013
1
3,000
Barbados Government T/Note 6% 2016
5
8,000
Barbados Government T/Note 6.5% 2016
1
7,500
Barbados Government T/Note 6.625% 2019
2
3,000
Barbados Government T/Note 7.25% 2014
1
100,000
Barbados Government T/Note 7.50% 2012
1
1,000
Barbados Government T/Note 7.75% 2013
1
10,000
Barbados Government T/Note 8% 2014
1
1,000
Total
36
3,489,500
BSE 1st Quarter Report 2012
Page |6
Index and Market Capitalization Movement A year on year comparison of the Index and Market Capitalization performance shows that the Cross Listed index was the only one to experience increases over the last 12 months. Performance of the cross listed securities showed improvement as three of the four securities listed - Jamaica Money Market Brokers Limited, Neal and Massy Holdings Limited and One Caribbean Media Limited - experienced share price appreciation; Trinidad Cement Limited did not trade. The Local Index registered the largest decline of 2.90% when compared to its position at the corresponding period in 2011 as twelve securities registered declines in share price over the 12 month period. Figure 2 - Index Comparison Year on Year illustrates the trend of the indices over the period under consideration. The market capitalization figures show improvements across the board with the Cross Listed Market Capitalization figure showing the highest increase of 4.77%. The minor increase in Local Market Capitalization performance can be attributed to the listing of 120 million Sagicor Financial Corporation 6.5% Preference shares at $2.00 in July 2011. Table 9 – Index Comparison Year on Year
Index
31-Mar-12
31-Mar-11
% Change
Local
3,261.28
3,358.59
-2.90%
Cross Listed
1,162.64
1,145.29
1.51%
725.94
735.60
-1.31%
Composite
Table 10 – Market Capitalization comparison Year on Year
Market Capitalization Local Cross Listed Composite
31-Mar-12 9,319,483,622.90 1,987,204,617.63 11,314,638,240.53
31-Mar-11 9,247,207,119.80 1,896,785,877.30 11,151,858,997.10
Figure 2 - Index Movement March 2011 to March 2012
% Change 0.78% 4.77% 1.46%
BSE 1st Quarter Report 2012
Page |7
The indices and market capitalization measures for the 1st quarter of 2012 showed similar results. Local Index performance recorded declines of 0.18%, however, the all market capitalization measures showed improvements over their respective December 2011 figures. st
Table 11 – Index Comparison 1 Quarter
Index
31-Mar-12
31-Dec-11
% Change
Local
3,261.28
3,267.18
-0.18%
Cross Listed
1,162.64
1,142.23
1.79%
725.94
722.07
0.54%
Composite
st
Table 12 – Market Capitalization Comparison 1 Quarter
Market Capitalization
31-Mar-12
31-Dec-11
% Change
Local
9,319,483,623
9,127,101,474
2.11%
Cross Listed
1,987,204,618
1,896,819,202
4.77%
Composite
11,314,638,241
11,031,870,677
2.56%
Company Activity Comparative Report For the first quarter of 2012 five (5) securities advanced, four (4) declined and seven (7) remained unchanged, ten (10) did not trade; one of which was suspended. This is compared to eight (8) securities advanced, four (4) declined and three (3) remained unchanged, ten (10) did not trade and one (1) was delisted for the corresponding period in 2011. Jamaica Money Market Brokers Limited was the top performer for the quarter climbing 50% from $0.10 to $0.15. One Caribbean Media Limited and Cave Shepherd and Company Limited had the next two largest increases climbing 8.81% and 8.7% respectively. Barbados Farms Limited registered the largest decline of the quarter as its share price fell by 20% from $1.50 to $1.20. Sagicor Financial Corporation was the only other company to register a decline in excess of 10% for the quarter with 19.86%.
BSE 1st Quarter Report 2012
Page |8
st
Table 13 - 1 Quarter Trading Activity By Company (Regular and Junior market only)
1st Quarter 2012
1st Quarter 2012
CLOSING PRICE
Volume
ANSA McAL (Barbados) Limited
761,324
$
8,945,557
11.75
11.75
0.00%
0
$
-
1.25
1.25
0.00%
1,299
$
2,416
1.86
1.86
0.00%
0
$
-
5.29
5.29
0.00%
14,282
$
17,138
1.20
1.50
-20.00%
0
$
-
5.50
5.50
0.00%
87,585
$
292,275
3.28
3.29
-0.30%
0
$
-
7.58
7.58
0.00%
265,781
$
238,260
0.90
1.00
-10.00%
Cave Shepherd and Company Limited
19,100
$
92,850
5.00
4.60
8.70%
Cable and Wireless Barbados Limited
46,875
$
250,473
5.34
5.34
0.00%
FirstCaribbean International Bank
329,643
$
1,023,356
3.13
2.90
7.93%
Goddard Enterprises Limited
253,926
$
1,523,556
6.00
6.00
0.00%
Insurance Corporation of Barbados Ltd.
67,479
$
181,842
2.69
2.50
7.60%
Jamaica Money Market Brokers Limited
1,000
$
150
0.15
0.10
50.00%
Light and Power Holdings Limited
1,560
$
40,092
25.70
25.70
0.00%
0
$
-
3.11
3.11
0.00%
Neal and Massey Holdings Limited
15,722
$
213,819
13.60
13.60
0.00%
One Caribbean Media Limited
32,348
$
103,769
3.21
2.95
8.81%
2,000
$
4,000
2.00
2.00
0.00%
447,727
$
1,063,788
2.30
2.87
-19.86%
Trinidad Cement Limited
0
$
-
0.80
0.80
0.00%
West India Biscuit Company Limited
0
$
-
10.01
10.01
0.00%
The West Indies Rum Distilleries Limited
0
$
-
8.00
8.00
0.00%
Royal Fidelity TIGRS A Fund
0
$
-
10.75
10.75
0.00%
Royal Fidelity TIGRS A1 Fund
0
$
-
10.00
10.00
0.00%
BICO Industries Limited Barbados Dairy Industries Limited Barbados Farms Limited Barbados National Bank Incorporated Banks Holdings Limited Barbados Shipping & Trading Co. Limited Fortress Caribbean Property Fund
Light And Power Holdings Ltd 5.5% Pref
Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation
Mar 31 2012
% Change
SECURITY
Almond Resorts Incorporated
Value
CLOSING PRICE December 31 2011
BSE 1st Quarter Report 2012
Page |9
Conclusion
The first quarter of 2012 can only be described as challenging. The reduction in general trading activity can be attributed to the absence of the large volumes associated with the takeover transactions which occurred during the first quarter of 2011. Looking towards the second quarter, news of the impending delisting Barbados Dairy industries and also the closure and delisting of Almond Resorts Incorporated, though disappointing, serve as reminders of the harsh realities and challenges being faced, not only by individuals but businesses as well, as the negative effects global economic recession persists. Challenges, however, can be overcome and thus the BSE remains committed to the development of the capital market in Barbados. We will press on with our initiative to further develop our Junior Market to give Small to Medium Enterprises (SMEs) an additional vehicle to raise capital to improve their operations. We will also seek to establish an International Securities Market here in Barbados. We are also focusing our efforts on the establishment of a structured market for the trading of commercial paper and also the possibility of introducing new instruments to our market.