2017 FIRST QUARTER R e p o rt
Overview Overall trading volume and value decreased by 84% each for the first quarter of 2017. Regular Market activity fell by 93% in terms of volume traded and 98% in terms of value traded. The Put-Through Market also recorded decreases in activity as the volume traded declined by 46% with a corresponding decline in the value traded on this market of 34%. There was one Block Trade transaction recorded during the first quarter of 2017 while there was no trading activity occurring on the Junior Market. The total number of trades at the close of the first quarter of 2017 showed great improvement as 860 trades were conducted across the board of the BSE;
this represents a 41% increase in the number of trades. This as compared to 608 trades conducted for the first quarter of 2016. Year to date and Year on Year market measures recorded similar mixed results. The Local Index and Market Capitalization measures benefitted from the upward price movements of several locally listed securities, however, the Cross-Listed measures were severely impacted by the delisting of two (2) securities during the first quarter of 20171. Table 1 - Year-to-Date Statistics shows a summary of year to date trading activity.
Table 1 – Year-to-Date Statistics Year-to-Date Market Regular Put - Through Junior Block Trade Total
1
Volume 2017 2016 2,059,708 28,565,823 156,557 288,264 2,519,171 4,735,436 28,854,087
See Company Activity Comparative Report.
Value ($) 2017 2016 4,741,537 192,120,908 396,137 600,728 25,771,119 30,908,794 192,721,636
% Change Volume Value -93% -98% -46 -34 NA NA NA NA -84 -84
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Regular Market Regular Market volume and value decreased substantially
There was a marginal increase in the number of trades
2017 when compared to the corresponding period in
2017, as compared to 436 trades for the corresponding period in 2016 as seen in Table 2 - 1st Quarter Regular Market Performance - Year on Year. A snapshot of the
absence of transactions conducted either pursuant, or subsequent, to a takeover 2 2016 Regular Market activity would have resulted in less substantial decreases in both traded volumes and values of 26% and 36% respectively.
declined versus nine securities advancing in price and
Table 2 – 1st Quarter Regular Market Performance – Year on Year 31-Mar-17
31-Mar-16
% Change
Total Share Volume
2,059,708
28,565,823
-93
Total Share Value
4,741,537
192,120,908
-98
32,183
460,739
-93
$74,087
$3,098,724
-98
505
436
16
64
62
3
$4.88
$6.20
-21
7/5
9/1
N/A
Local Index
2,866.91
2,478.82
16
Cross – Listed Index
1,029.34
1,738.11
-41
687.56
678.19
1
6,226,553,949
6,272,039,643
-1
694,849,524
2,862,760,630
-76
6,921,403,473
9,134,800,272
-24
18
24
-25
Average Daily Share Volume Average Daily Share Value Number of Trades Number of Trade Days Average Share Price Advance/Decline Ratio
Composite Market Index Local Market Capitalization Cross-Listed Market Capitalization Composite Market Capitalization Number of Listed Securities
2 Limited traded at $7.10.
nks Holdings
4
Annual Report 2017
Sagicor Financial Corporation repeated its first quarter 2016 performance as the most actively traded security on the market accounting for 32.67% of the number of trades occurring in the market. They were followed by Goddard Enterprises Limited and Insurance Corporation of Barbados Limited which accounted for 15.45% and 14.46% of the number of trades for the quarter in this market respectively. Figure 1 - No. of Trades - 1st Quarter 2017 illustrates the number of trades occurring on the Regular Market by Security. Table 3 and Table 4, illustrates the top traded companies for the quarter based on volume and value respectively. Sagicor Financial Corporation Limited was the top performer in terms of both volume and value. Fortress Caribbean Property Fund’s Value and Development Funds rounded out the top three securities in terms of volume traded while Insurance Corporation of Barbados Limited and Goddard Enterprises Limited rounded out the top three in terms of value traded.
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Figure 1 – No. of Trades – 1st Quarter 2017 No. of Trades 200
165 150
100
78
50
0
37
33
24 3
ARI
73
8
BDI
8 BICO
20
21
13
CSP
CPFDF
GEL
9
7
1 JMMBGL
SFC65
WIR
1
4 WIB
Table 3 – Top Five Traded Companies by Volume 2017
2016
2017
2016
Company
Volume
Volume
Value ($)
Value ($)
Sagicor Financial Corporation Limited
511,265
359,585
1,134,187
712,355
Fortress Caribbean Property Fund - Val Fund
505,437
150,958
271,748
92,915
Fortress Caribbean Property Fund - Dev Fund
248,801
82,523
38,594
15,864
Insurance Corporation Of Barbados Limited
244,950
1,053,098
931,439
2,838,249
111,513
1,100
168,385
1,320
2017
2016
2017
2016
Company
Value ($)
Value ($)
Volume
Volume
Sagicor Financial Corporation Limited
1,134,187
712,355
511,265
359,585
Insurance Corporation Of Barbados Limited
931,439
2,838,249
244,950
1,053,098
Goddard Enterprises Limited
884,969
172,895
96,129
24,265
Banks Holdings Limited
507,238
182,654,263
71,442
25,726,590
Fortress Caribbean Property Fund - Val Fund
271,748
92,915
505,437
150,958
Trinidad Cement Limited
Table 4 – Top Five Traded Companies by Value
6
Annual Report 2017
Junior Market, Block Trade Market & Put Through Market There was no trading activity recorded for the Junior Market for the first quarter of 2017. On March 10th, 2017, the Block Trade Market recorded one transaction which resulted in 2,519,171 shares in The West Indies Rum Distilleries Limited trading at $10.225586. The BSE approved this transaction in respect of item (d) in Section 7.01.21 Block Trade Rules of the Rules of the Barbados Stock Exchange which states, “the sale and purchase of a listed security pursuant to a take-over transaction, conducted or to be conducted in accordance with applicable laws�. The Put-through Market recorded decreases terms of both volume and value traded. The total volume of shares traded decreased by 46% while the total value of shares traded decreased by 34%. Table 5 - Put-through Market Activity - 1st Quarter 2017 illustrates the activity which occurred on this market as at March 31st, 2017.
Fixed Income Market The Fixed Income Market recorded a total of 25 trades in which ten (10) Barbados Government Debentures and six (6) Barbados Government Treasury Notes were traded with a face value of $2,462,000. This as compared to the 92 trades in which twenty (20) Barbados Government Debentures and eleven (11) Barbados Government Treasury Notes traded with a face value of $38,685,000 at the close of the first quarter of 2016. Table 6 - Fixed Income Market Activity - 1st Quarter 2017 gives details on each bond traded as at March 31st, 2017.
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Table 5: Put-through Market Activity - 1st Quarter 2017 Company
No. of Trades
Volume
Value ($)
1
3,000
27,600.00
Sagicor Financial Corporation
354
153,557
368,536.80
Total
355
156,557
396,136.80
Goddard Enterprises Limited
Table 6: Fixed Income Market Activity - 1st Quarter 2017 Security
No. of Trades
Amount Traded
Barbados Government Debenture 6.125% 2021
3
20,000
Barbados Government Debenture 6.625% 2020
2
206,000
Barbados Government Debenture 6.875% 2023
1
11,000
Barbados Government Debenture 6.875% 2024
1
5,000
Barbados Government Debenture 7% 2017
1
1,000
Barbados Government Debenture 7% 2023
1
1,000
Barbados Government Debenture 7.25% 2029
2
65,000
Barbados Government Debenture 7.375% 2027
2
3,000
Barbados Government Debenture 7.375% 2029
1
1,000
Barbados Government Debenture 7.75% 2025
3
11,000
Barbados Government T/Note 5.5% 2020
2
4,000
Barbados Government T/Note 6% 2019
1
2,000,000
Barbados Government T/Note 6% 2020
2
125,000
Barbados Government T/Note 6.25% 2018
1
3,000
Barbados Government T/Note 6.25% 2024
1
5,000
Barbados Government T/Note 6.5% 2019
1
1,000
25
2,462,000
Total
8
Annual Report 2017
Index & Market Capitalization Movement A year on year comparison of the Index performance (Table 7) shows that all Index measures, except for the Cross-Listed Index, experienced increases over the last 12 months. The negative Cross-Listed Index performance can be attributed to the delisting of both Massy Holdings Limited and Trinidad Cement Limited reducing the number of Cross-Listed securities on the board of the BSE to two. It must be noted however, that having lifted the Odd-Lot Volume Limits, first implemented on October 8th, 2012, greater price discovery has occurred resulting in more frequent share price movements in the securities listed and traded on the board of the BSE. Evidence of this is indicated in the moderate improvements seen in year on year comparison of Local Index performance. Figure 2 - Index Movement March 2016 to March 2017 illustrates the trend of the indices over the period under consideration. The year-on-year market capitalization figures illustrated in Table 8 show declines across the board; the most significant of which is the Cross-Listed Market
Capitalization measure caused by the aforementioned delisting of two Cross-Listed securities. The indices and market capitalization measures for the first quarter of 2017 (Table 9 and 10) showed more positive results as several locally listed securities experienced share price appreciation more than 5% over their closing positions as at December 31st, 2016. The Local Index and Market Capitalization measures showed improvement recording increases of 10.31% and 10.34% respectively. While the Cross-Listed Index and Market Capitalization recorded substantial decreases due to delistings, it must be noted that the appreciation in the share prices of some of the larger issuers – Sagicor Financial Corporation Limited and FirstCaribbean International Bank Limited – were sufficient to reduce the impacts of the delistings on the broad Composite market measures. The Composite Index increasing by 5.48% and its corresponding Market Capitalization fell by a nominal 12.15% when compared to their respective December 31st, 2016 results.
Table 7 – Index Comparison Year on Year Index
31-Mar-17
31-Mar-16
% Change
Local
2,866.91
2,478.82
15.66
Cross-Listed
1,029.34
1,738.11
-40.78
687.56
678.19
1.38
31-Mar-17
31-Mar-16
% Change
6,226,553,949
6,272,039,643
-0.73
694,849,524
2,862,760,630
-75.73
6,921,403,473
9,134,800,272
-24.23
Composite
Table 8 – Market Capitalization Comparison Year on Year Market Capitalization Local Cross-Listed Composite
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Figure 2 - Index Movement March 2016 to March 2017 Local Index
Cross-Listed Index
Composite Index
20% 10%
% Change
0% -10% -20% -30%
March
February
January
December
November
October
September
August
July
June
May
April
-50%
March
-40%
Table 9 – Index Comparison 1st Quarter
Index
31-Mar-17
31-Dec-16
% Change
Local
2,866.91
2,598.89
10.31
Cross-Listed
1,029.34
1,357.55
-24.18
687.56
651.85
5.48
31-Mar-17
31-Dec-16
% Change
6,226,553,949
5,643,146,945
10.34
694,849,524
2,235,947,791
-68.92
6,921,403,473
7,879,094,736
-12.15
Composite
Table 10 – Market Capitalization Comparison 1st Quarter
Market Capitalization Local Cross-Listed Composite
10
Annual Report 2017
Company Activity Comparative Report (4) did not trade – Emera Deposit Receipt advanced in price but did not trade; there were two (2) delistings3. This as compared to nine (9) securities advanced, one (1) not trade one (1) of which was a new listing; there was one (1) delisting. Sagicor Financial Corporation Limited was the top
quarter of 2017. Table 11 - 1st Quarter Trading Activity by Company illustrates the price movements for the Table 12 illustrates the price movements over the last seven (7) securities have experienced price increases of 15%, or more, over their March 31st, 2016 position while only one (1) security experienced a decline more than 15%.
of 2017. FirstCaribbean International Bank Limited (14.29%) and Barbados Farms Limited (12.90%) were the remaining securities experiencing double digit increases during the quarter. Fortress Caribbean Property Fund – Development Fund was the only security to record
3
Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Massy
Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Trinidad Cement
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Table 11 - 1st Quarter Trading Activity by Company (Regular and Junior market only) 1st Quarter 2017 Security Abv Investments Incorporated
Volume
Closing Price
% Change
Value ($) Mar 31 2017 Dec 31 2016
0
-
0.02
0.02
0.00
27,460
59,482
2.19
2.05
6.83
3,783
7,282
1.95
1.90
2.63
Barbados Farms Limited
43,040
14,767
0.35
0.31
12.90
Banks Holdings Limited
71,442
507,238
7.10
7.10
0.00
Fortress C’bean Property Fund-Dev Fund
248,801
38,594
0.15
0.20
-25.00
Fortress C’bean Property Fund - Val Fund
505,437
271,748
0.53
0.55
-3.64
Cave Shepherd And Company Limited
55,440
192,288
3.45
3.50
-1.43
Cable And Wireless Barbados Limited
43,992
109,256
2.45
2.60
-5.77
Firstcaribbean International Bank
58,025
134,164
2.40
2.10
14.29
Goddard Enterprises Limited
96,129
884,969
9.27
9.01
2.89
800
120
0.15
0.15
0.00
Emera Deposit Receipt
0
-
17.38
16.55
5.02
Massy Holdings Limited*
-
-
NA
NA
NA
18,586
126,875
6.80
6.94
-2.02
0
-
2.26
2.26
0.00
Sagicor Financial Corporation
511,265
1,134,187
2.38
2.01
18.41
Trinidad Cement Limited*
111,513
168,385
-
0.85
NA
930
15,823
17.26
15.95
8.21
18,115
144,920
8.00
8.00
0.00
2,059,708
4,741,537
Bico Industries Limited Barbados Dairy Industries Limited
Jmmb Group Limited
One Caribbean Media Limited Sagicor Financial Corporation 6.5% Pref
West India Biscuit Company Limited The West Indies Rum Distilleries Limited Total * Denotes delisted security
12
Annual Report 2017
Table 12 - Year on Year Trading Activity by Company (Regular and Junior market only) Closing Price
Closing Price
Mar 31 2017
Mar 31 2016
Abv Investments Incorporated
0.02
0.02
0.00%
Bico Industries Limited
2.19
1.86
17.74%
Barbados Dairy Industries Limited
1.95
1.60
21.88%
Barbados Farms Limited
0.35
0.40
-12.50%
Banks Holdings Limited
7.10
7.10
0.00%
Fortress C’bean Property Fund - Dev Fund
0.15
0.19
-21.05%
Fortress C’bean Property Fund - Val Fund
0.53
0.61
-13.11%
Cave Shepherd And Company Limited
3.45
3.35
2.99%
Cable And Wireless Barbados Limited
2.45
2.66
-7.89%
Firstcaribbean International Bank
2.40
2.00
20.00%
Goddard Enterprises Limited
9.27
7.25
27.86%
Insurance Corporation Of Barbados Limited
3.79
3.08
23.05%
Jmmb Group Limited
0.15
0.15
0.00%
17.38
17.99
-3.39%
One Caribbean Media Limited
6.80
7.00
-2.86%
Sagicor Financial Corporation 6.5% Pref
2.26
2.26
0.00%
Sagicor Financial Corporation
2.38
2.00
19.00%
17.26
14.10
22.41%
8.00
8.00
0.00%
Security
Emera Deposit Receipt
West India Biscuit Company Limited The West Indies Rum Distilleries Limited *Denotes delisted security
% Change
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Conclusion First quarter 2017 performance, when compared to the first quarter of 2016 figures, was indeed less than favorable. While the 2017 first quarter performance numbers may appear negative, it is imperative to be note that there was a substantial decline in the number of transactions conducted either pursuant, or subsequent, to the takeover of a company listed on the board of the BSE. Removing this activity from the year on year comparison would have resulted in a 54% increase in terms of the total volume traded with a corresponding increase in total value traded of 288%. Notable mention must also be given to the improvement in the number of trades conducted as this serves as a likely indicator of the level of interest in investing in securities listed and traded on the board of the BSE. An examination of closing indices for exchanges across the region reveal that, much like the BSE, all exchanges are experiencing an upturn in market performance when compared to their closing values as at December 31st, 2016. The BSE Composite Index, despite the challenges, recorded the highest increase of 5.48%. It was followed by the JSE Market Index (4.61%), the TTSE Composite Index (2.01%) and finally the ECSE Index, which recorded an increase of 0.82%. Table 13 - Year to date Index Comparison Closing Index Name
Region/Exchange
BSE Composite Index
Barbados Stock Exchange
JSE Market Index
Jamaica Stock Exchange
TTSE Composite Index
Trinidad and Tobago Stock Exchange
ECSE Index
Eastern Caribbean Stock Exchange
March 31 2017 Dec 31 2016 % Change 687.56
651.85
5.48
201,139.49
192,276.64
4.61
1,233.79
1,209.53
2.01
157.41
156.13
0.82
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