1st Quarter Report 2013 Overview Overall trading volume increased by 15%, while trading value decreased by 19% for the 1st quarter of 2013. The Put-Through Market was the only market to record increases in trading activity; 687% in terms of volume and 495% in terms of value. Regular Market activity fell by 2% in terms of volume traded and by 33% in terms of value traded. On October 8th, 2012 the BSE ceased operation of the OddLot Market by instituting a threshold system for trades occurring in the Regular Market. The result of this is that small trades below a set threshold would not affect the final price of a security in the Regular Market. The total number of trades decreased by 36% from 452 in 2012 to 298 in 2013. There were increases in all market indices when compared to their December 31st 2012 figures. The Local and Composite Market Capitalization measures recorded minor decreases when compared to their respective positions at the close of 2012. The Cross-Listed measures was the best performer for both market measures recording increases of 2.84% and 2.57% for the index and market capitalization measures respectively. Takeover transactions for Republic Bank (Barbados) Limited continued into 2013. There were a total of ten (10) trades recorded with a total trading volume of 1,279,356 shares and a total trading value of $6,396,780.00. In the first quarter of 2012, there was only one (1) takeover transaction which saw 761,324 shares in ANSA McAL (Barbados) Limited trading with a total trading value of $8,945,557.00. Table 1 – Year to date Statistics
Market
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
% Change
% Change
2013 Volume
2012 Volume
2013 Value
2012 Value
Volume
Value
Regular
2,304,524
2,347,651
$
9,394,932
$
13,993,341
-2%
-33%
Odd-Lot
-
48,575
$
-
$
222,328
-100%
-100%
535,156
67,960
$
2,405,582
$
404,146
687%
495%
-
-
$
-
$
-
NA
NA
-
-
$
-
$
-
NA
NA
2,839,680
2,464,186
$
11,800,514
$
14,619,815
15%
-19%
Put - Through Junior Block Trade Total
BSE 1st Quarter Report 2012
Page |2
Regular Market
Regular Market volume and value decreased for the first quarter of 2013 when compared to the same period in 2012. Trading volume decreased by 1.84% from 2,347,651 in 2012 to 2,304,524 in 2013; whereas trading value decreased by 32.86%. However, during the period under review, there was a 14.68% increase in the number of trades occurring in the market and a 4.69% decrease in the number of trading days. A snapshot of the advance-decline ratio at the end of the 1st quarter of 2013 showed declines, with only six securities advancing and seven declining versus seven securities advancing in price and eleven declining at the 1st quarter close of 2012. At the close of the first quarter of 2012 there was one significant transaction which resulted in a volume of 761,324 shares in ANSA McAL (Barbados) Limited trading with a value of $8,945,557. In 2013 however, there were ten trades related to the offer made by Republic Bank Limited for all the issued and outstanding shares of Republic Bank Barbados Limited (RBBL) and one trade related to AMCL Holdings Limited's offer for ANSA McAL (Barbados) Limited which resulted in a total of 1,281,206 shares being traded with a total value of $6,418,517.50. Removing these significant transactions would have resulted in a decrease in trading volume on the Regular Market of 35% and a decrease in trading value of 41% for 2013 when compared to the closing figures, less the significant transactions, that took place during the first quarter of 2012. 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-13
31-Mar-12
2,304,524 9,394,932 37,779 $ 154,015 289 61 $ 5.97 6/7 3,084.37 1,325.98 738.76 8,869,156,101 2,214,570,569 11,103,526,670 28
2,347,651 13,993,341 36,682 $ 218,646 252 64 $ 5.78 7/11 3,261.28 1,162.64 725.94 9,319,483,623 1,987,204,618 11,314,638,241 26
% Change -1.84% -32.86% 2.99% -29.56% 14.68% -4.69% 3.30% N/A -5.42% 14.05% 1.77% -4.83% 11.44% -1.87% 7.69%
BSE 1st Quarter Report 2012
Page |3
Goddard Enterprises Limited was the most actively traded security on the market accounting for 21% of the number of trades occurring in the market. Sagicor Financial Corporation was the second most actively traded security, accounting for 17% of the number of trades for the quarter in this market. Figure 1 below illustrates the number of trades occurring on the Regular Market by Security.
st
Figure 1 – No. of Trades – 1 Quarter 2013
Table 3 and Table 4 below, show the top traded companies for the quarter based on volume and value respectively. Republic Bank (Barbados) Limited was the top performer for both volume and value traded. Caribbean Property Fund Limited was second in terms of volume traded while Goddard Enterprises Limited was second in terms of value traded. Table 3 – Top five traded companies by volume
2013
2012
2013
2012
Volume
Volume
Value
Value
REPUBLIC BANK (BARBADOS) LIMITED
1,279,356
-
$ 6,396,780.00
$
CARIBBEAN PROPERTY FUND LIMITED
327,186
265,781
$ 261,648.80
$ 238,259.70
SAGICOR FINANCIAL CORPORATION
212,418
447,727
$ 453,869.10
$ 1,063,788.16
FIRSTCARIBBEAN INTERNATIONAL BANK
155,476
329,643
$ 470,919.10
$ 1,023,356.11
93,774
32,348
$ 442,820.74
$ 103,768.60
Company
ONE CARIBBEAN MEDIA LIMITED
-
BSE 1st Quarter Report 2012
Page |4
Table 4 – Top five traded companies by value
Company
2013
2012
2013
2012
Value
Value
Volume
Volume
1,279,356
-
REPUBLIC BANK (BARBADOS) LIMITED
$ 6,396,780.00
$
-
GODDARD ENTERPRISES LIMITED
$ 549,824.99
$ 1,523,556.00
90,808
253,926
FIRSTCARIBBEAN INTERNATIONAL BANK
$ 470,919.10
$ 1,023,356.11
155,476
329,643
SAGICOR FINANCIAL CORPORATION
$ 453,869.10
$ 1,063,788.16
212,418
447,727
ONE CARIBBEAN MEDIA LIMITED
$ 442,820.74
$ 103,768.60
93,774
32,348
Junior Market, Block Trade Market & Put Through Market There was no trading activity recorded for the Junior or Block Trade Markets for the 1st Quarter of 2013. The Put Through Market did, however, record increases of 687% in terms of volume and 495% in terms of value. Table 5 below illustrates the activity which occurred on this market as at March 31st, 2013. st
Table 5: Put-through Market Activity - 1 Quarter 2013
Company
Volume
Value
CABLE AND WIRELESS BARBADOS LIMITED
316,400
$ 1,582,000.00
BANKS HOLDINGS LIMITED
96,000
$ 278,400.00
CAVE SHEPHERD AND COMPANY LIMITED
96,000
$ 422,600.00
GODDARD ENTERPRISES LIMITED
16,921
$ 101,526.00
SAGICOR FINANCIAL CORPORATION
8,835
$
18,456.06
INSURANCE CORPORATION OF BARBADOS LIMITED
1,000
$
2,600.00
TOTAL
535,156
$
2,405,582.06
BSE 1st Quarter Report 2012
Page |5
Fixed Income Market There were 51 trades recorded on this market with a total volume of 3,388,000 bonds traded as compared to the 36 trades and 3,489,500 bonds traded at the close of the first quarter of 2012. Table 6 below, gives details on each bond traded as at March 31st, 2013. st
Table 6: Fixed Income Market activity 1 Quarter 2013
Security
No. of Trades
Amount Traded
BARBADOS GOVERNMENT DEBENTURE 4.75% 2016
1
2,000
BARBADOS GOVERNMENT DEBENTURE 5.25% 2013
2
201,000
BARBADOS GOVERNMENT DEBENTURE 5.875% 2018
1
1,000
BARBADOS GOVERNMENT DEBENTURE 6.125% 2021
1
1,000
BARBADOS GOVERNMENT DEBENTURE 6.25% 2019
1
1,000
BARBADOS GOVERNMENT DEBENTURE 6.25% 2022
1
2,000
BARBADOS GOVERNMENT DEBENTURE 6.625% 2018
2
550,000
BARBADOS GOVERNMENT DEBENTURE 6.625% 2020
1
3,000
BARBADOS GOVERNMENT DEBENTURE 6.75% 2021
1
2,000
BARBADOS GOVERNMENT DEBENTURE 6.875% 2023
2
101,000
BARBADOS GOVERNMENT DEBENTURE 7% 2017
3
3,000
BARBADOS GOVERNMENT DEBENTURE 7% 2023
2
3,000
BARBADOS GOVERNMENT DEBENTURE 7.125% 2026
2
2,000
BARBADOS GOVERNMENT DEBENTURE 7.375% 2027
1
1,000
BARBADOS GOVERNMENT DEBENTURE 7.375% 2029
1
1,000
BARBADOS GOVERNMENT T/NOTE 4.25% 2013
2
2,000
BARBADOS GOVERNMENT T/NOTE 4.375% 2014
2
3,000
BARBADOS GOVERNMENT T/NOTE 4.5% 2015
3
734,000
BARBADOS GOVERNMENT T/NOTE 5.875% 2015
4
614,000
BARBADOS GOVERNMENT T/NOTE 6% 2016
8
94,000
BARBADOS GOVERNMENT T/NOTE 6% 2017
1
1,000,000
BARBADOS GOVERNMENT T/NOTE 6.25% 2018
3
14,000
BARBADOS GOVERNMENT T/NOTE 6.375% 2019
1
1,000
BARBADOS GOVERNMENT T/NOTE 6.5% 2019
2
2,000
BARBADOS GOVERNMENT T/NOTE 6.625% 2019
2
4,000
BARBADOS GOVERNMENT T/NOTE 8% 2014
1
46,000
51
3,388,000
TOTALS
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 both the Cross Listed and Composite indices experienced increases over the last 12 months. Performance of the cross listed securities showed improvement as two of the four securities listed - Neal and Massy Holdings Limited and One Caribbean Media Limited - experienced share price appreciation; Jamaica Money Market Brokers Limited traded firm while Trinidad Cement Limited did not trade. The Local Index registered the largest decline of 5.42% when compared to its position at the corresponding period in 2012 as twelve securities registered declines in share price over the 12 month period. Figure 2 - Index Movement March 2012 to March 2013 illustrates the trend of the indices over the period under consideration. The market capitalization figures illustrated in Table 8 below show improvements in the Cross Listed Market Capitalization figure which recorded the only increase of 11.44% due largely in part to a 50% increase in price for Jamaica Money Market Brokers Limited and a 61% increase in price of One Caribbean Media Limited. Table 7 – Index Comparison Year on Year
Index
31-Mar-13
31-Mar-12
% Change
Local
3,084.37
3,261.28
-5.42%
Cross Listed
1,325.98
1,162.64
14.05%
738.76
725.94
1.77%
Composite
Table 8 – Market Capitalization comparison Year on Year
Market Capitalization Local Cross Listed Composite
31-Mar-13 8,869,156,100.67 2,214,570,568.98 11,103,526,669.65
31-Mar-12 9,319,483,622.90 1,987,204,617.63 11,314,638,241
Figure 2 - Index Movement March 2012 to March 2013
% Change -4.83% 11.44% -1.87%
BSE 1st Quarter Report 2012
Page |7
The indices and market capitalization measures for the 1st quarter of 2013 showed mixed results as all Index measures recorded marginal increases over their respective December 2012 figures while only the Cross-Listed Market Capitalization measure showed improvement; the decreases experienced for the Local and Composite Market Capitalization measures were nominal. st
Table 9 – Index Comparison 1 Quarter
Index
31-Mar-13
31-Dec-12
% Change
Local
3,084.37
3,082.38
0.06%
Cross Listed
1,325.98
1,289.35
2.84%
738.76
730.04
1.19%
Composite
st
Table 10 – Market Capitalization Comparison 1 Quarter
Market Capitalization
31-Mar-13
31-Dec-12
% Change
Local
8,869,156,101
8,957,484,391
-0.99%
Cross Listed
2,214,570,569
2,159,097,185
2.57%
Composite
11,103,526,670
11,124,381,576
-0.19%
Company Activity Comparative Report For the first quarter of 2013 six (6) securities advanced, seven (7) declined, eight (8) remained unchanged and seven (7) did not trade; one of which was suspended. This is compared to five (5) securities advanced, four (4) declined and seven (7) remained unchanged and ten (10) did not trade; one of which was suspended for the corresponding period in 2012. Goddard Enterprises Limited was the top performer for the quarter climbing 12.96% from $5.40 to $6.10. Sagicor Financial Corporation Pref 6.5% and BICO industries Limited had the next two largest increases climbing 8.65% and 6.25% respectively. Almond Resorts Incorporated registered the largest decline of the quarter as its share price fell by 20% from $0.50 to $0.40. No other company registered a decline in excess of 10% for the 1st quarter of 2013.
BSE 1st Quarter Report 2012
Page |8
st
Table 11 - 1 Quarter Trading Activity By Company (Regular and Junior market only)
1st Quarter 2013 SECURITY
1st Quarter 2013
Volume
CLOSING PRICE
Value
Mar 31 2013
CLOSING PRICE
% Change
December 31 2012
Ansa Mcal (Barbados) Limited
1,850
$
21,738
11.75
11.75
0.00%
Almond Resorts Inc.
5,000
$
2,000
0.40
0.50
-20.00%
Bico Industries Ltd.
3,998
$
6,197
1.70
1.60
6.25%
500
$
1,500
3.00
3.00
0.00%
4,361
$
4,361
1.00
1.00
0.00%
1,279,356
$
6,396,780
5.00
5.00
0.00%
12,041
$
34,944
2.90
3.00
-3.33%
0
$
-
7.58
7.58
0.00%
327,186
$
261,649
0.80
0.80
0.00%
2,468
$
10,548
4.35
4.68
-7.05%
Cable and Wireless Barbados Ltd
13,669
$
62,760
5.00
5.00
0.00%
FirstCaribbean International Bank
155,476
$
470,919
2.98
3.05
-2.30%
Goddard Enterprises Ltd.
90,808
$
549,825
6.10
5.40
12.96%
Insurance Corporation Of Barbados Ltd.
39,316
$
101,123
2.55
2.60
-1.92%
Jamaica Money Market Brokers Limited
11,340
$
2,043
0.15
0.15
0.00%
3,482
$
89,487
25.70
25.70
0.00%
0
$
-
3.11
3.11
0.00%
Neal And Massey Holdings Ltd.
24,507
$
381,082
14.60
14.05
3.91%
One Caribbean Media Limited
93,774
$
442,821
4.76
4.75
0.21%
Sagicor Financial Corporation 6.5% Pref
15,200
$
34,352
2.26
2.08
8.65%
212,418
$
453,869
2.15
2.23
-3.59%
0
$
-
0.80
0.80
0.00%
West India Biscuit Co. Ltd.
2,374
$
23,787
10.02
10.01
0.10%
The West Indies Rum Distilleries Ltd.
5,400
$
43,146
7.99
8.00
-0.12%
Royal Fidelity TIGRS A Fund
0
$
-
10.50
10.50
0.00%
Royal Fidelity TIGRS A1 Fund
0
$
-
10.00
10.00
0.00%
Royal Fidelity TIGRS A2 Fund
0
$
-
10.00
10.00
0.00%
Royal Fidelity TIGRS A3 Fund
0
$
-
10.00
10.00
0.00%
2,304,524
$
9,394,932
Barbados Dairy Industries Ltd. Barbados Farms Ltd. Republic Bank Barbados Limited Banks Holdings Ltd. Barbados Shipping & Trading Co. Ltd. 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 Trinidad Cement Ltd.
BSE 1st Quarter Report 2012
Page |9
Conclusion The first quarter of 2013, much like the 1st quarter of 2012, can only be described as challenging. The increases in general trading volumes can be attributed to the large volumes associated with the takeover transactions and Put Through market activity. However, the prices at which these and other trades occurred, were not sufficient to cause an increase in the value of shares traded in the 1st quarter of 2013. In the recent review of Barbados' economy after the first three months of 2013, the Central Bank of Barbados has reported that the local economy has contracted by 0.4%. Despite having lower domestic prices and 19 weeks of foreign reserves to cover imports, all sectors of the economy registered declines. The economic downturn in the 1st quarter has been described one of the worse since the onset of the global economic recession. At the BSE, we are well aware that activities in the wider marketplace tend to be mirrored in the local Capital Market. However, we maintain that while we must be prepared for any negative impacts, we must, at the same time, continue to evolve and position ourselves in such a way that we are able to take advantage of any opportunities that may become available in the future. Thus, we continue to press ahead with our International Securities Market (ISM) initiative which would facilitate the listing and trading of foreign securities of companies domiciled abroad that are seeking to establish a physical presence in Barbados, as well as securities owned by International Business Companies (IBCs) that are currently operating on the island. We hosted a breakfast meeting to discuss the Rules of the ISM and said rules are currently before the Financial Services Commission, our Regulator, pending approval. Once approved, the ISM will be marketed globally and our intention is to attract as many IBCs to list their securities while providing Barbados with yet another tool to attract more foreign investment to our shores.