2014
End of Year Report
8th Avenue Belleville, St. Michael BB11114, Barbados T: (246) 436-9871/2 | F: (246) 429-8942 | www.bse.com.bb
2014 Year End Report The following report reviews the overall performance of the companies listed on the Barbados Stock Exchange for the period January 1, 2014 to December 31, 2014 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 2014 Historical Company Trading statistics Market Events The Regulatory Roundup Concluding Remarks
3 3
Overall Performance The year ending December 31, 2014 proved to be another challenging year for the Barbados Stock Exchange Inc (BSE). Overall trading volume and value fell by 67% and 72% respectively. All markets recorded declines and there was no activity on the Junior and Block Trade Markets. There was a minor improvement in the total number of trades occurring, however, this increased activity was still being severely affected by contracting share prices. The Bond Market also experienced small improvements in the number of trades occurring but saw a reduction in the total face value traded during 2014. There were no extraordinary transactions occurring in 2014. Table 1 below illustrates all activity occurring on the board of the BSE for the year ended December 31, 2014. Table 1 - Trading Activity Comparison by Market
Market
December
December
December
December % Change % Change
2014 Volume
2013 Volume
2014 Value
2013 Value
Volume
Value
Regular
5,734,749
6,448,758
$
18,124,650 $
22,474,461
-11%
-19%
Put Through
1,629,561
2,959,128
$
3,859,712 $
17,134,360
-45%
-77%
Junior
-
7,000
$
- $
70,000
NA
NA
Block Trade
-
12,907,292
$
- $
38,076,511
NA
NA
7,364,310
22,322,178
$
21,984,362 $
77,755,333
-67%
-72%
Total
There was one delisting from the board of the BSE; Barbados Shipping and Traded Company Limited was the sole security exiting the board during 2014. Three companies underwent rebranding exercises; Almond Resorts Incorporated was renamed ABV Investments Incorporated, Neal and Massy Holdings Limited changed its name to Massy Holdings Limited and Light and Power Holdings Limited is now Emera (Caribbean) Incorporated1. Market indices showed mixed results in 2014 when compared to the closing figures for 2013. At year-end, the Crosslisted Index was the only measure to record an increase of 14.78%. The Local and Composite indices, however, had fallen by 28.65% and 17.45% respectively, below their 2013 year-end figures. The improved Cross-Listed Index performance was due primarily to the increase in the traded price of both Massy Holdings Limited and One Caribbean Media Limited. These two securities experienced double digit increases in share price by the close of 2014, over their December 31, 2013 figures. The BSE Market Capitalization measures performed similarly with the Cross-Listed Market Cap recording increase of 14.84%, and the Local and Composite Market Cap measures recording declines of 32.9% and 21.6% respectively. It should be noted that the declining Local Market Cap performance was attributed primarily to the de-listing of Barbados Shipping and Trading Company Limited and a 24.17% decrease in the price of the Exchange’s largest issuer - FirstCaribbean International Bank.
1
See Market Events 2014 below.
4 Table 2 below illustrates the Trading Statistics Comparison 2014 - 2013. Quarters I and III for 2014 were the most active in terms of volume traded due to heavy activity on the Put Through Market while Quarters I, II and IV were most active in terms of value traded. Table 2 - Trading Statistics Comparison 2014 - 2013
Number of Shares
Market Quarter
Number of Shares
2014
Market Value
Market Value
Number of Transactions
Number of Transactions
2013
2014
2013
2014
2013
I
2,096,844
2,839,680 $
6,485,537 $
11,800,514
370
298
II
1,705,040
1,740,158 $
5,242,080 $
7,939,745
281
297
III
2,319,643
1,078,955 $
3,696,961 $
2,846,227
395
267
IV
1,242,783
16,663,385 $
6,559,784 $
55,168,847
234
332
7,364,310
22,322,178 $
21,984,362 $
77,755,333
1,280
1,194
Total
There was a 7.2% increase in the number of trades occurring in 2014 when compared to 2013. There were 1,280 trades in 2014 as compared to 1,194 for 2013. Figure 1: Total Trade Frequency Comparison, illustrates graphically how the trade frequency has varied between 2014 and 2013. Figure 1 - Total Trade Frequency Comparison
BSE Total Trade Frequency Comparison
160
No. of Trades
140 120 100 80 60 40 20 0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
2014
66
152
152
83
101
97
152
120
123
78
77
79
2013
118
104
76
158
42
97
76
96
95
116
93
123
5 As illustrated in Table 3 below, there was a decrease in both the volume and value traded for the fourth quarter of 2014 when compared to the corresponding period in 2013. The Regular Market showed promise despite recording a decrease of 33% in terms of volume, the value traded was 37% higher than that traded in the corresponding period in 2013. The Put Through market2 recorded a substantial decrease in activity, 97% in terms of both volume and value, while there was no activity on the Junior Market or the Block Trade Market3 to match both Markets’ performance during the 4th Quarter of 2013. For the 4th quarter, all market measures saw improved performance. The Local and Cross-listed Index measures recorded increases of 0.02% and 1.78% respectively resulting in a minor 0.65% increase in the Composite Index measure. Similarly, the Local and Cross-listed Market Cap measures recorded increases of 0.02% and 1.84% respectively which resulted in an improvement of the Composite Market Cap of 0.64%. Table 3 - Fourth Quarter Trading Activity Comparison
Market
Regular
Fourth Quarter
Fourth Quarter
Third Quarter
Fourth Quarter
2014 Volume
2013 Volume
2014 Value
2013 Value
% Change % Change Volume
Value
1,174,383
1,742,315 $
6,136,264 $
4,491,422
-33%
37%
68,400
2,006,778 $
423,520 $
12,530,914
-97%
-97%
Junior
-
7,000 $
- $
70,000
NA
NA
Block Trade
-
12,907,292 $
- $
38,076,511
NA
NA
1,242,783
16,663,385 $
6,559,784 $
55,168,847
-93%
-88%
Put Through
Total
2
On December 6, 2013 a Put Through transaction occurred resulting in 1,995,967 shares in Goddard Enterprises Limited trading at $6.25.
3
On Tuesday October 22, 2013 a Block Trade transaction occurred resulting in 12,907,292 shares in Banks Holdings Limited trading at $2.95.
6
Economic Factors This segment of the report was compiled from the Analysis of Barbados’ Current Economic Performance dated December 2014 and published by the Central Bank of Barbados (CBB). In its report the CBB estimated that overall economic activity would improve by 0.3% in 2014. Improvements were attributed to the expansion in activity in the Construction sector, estimated at 1%, due primarily to the investment in tourism related projects to the tune of approximately $152 million. Expansion in Construction and an increased demand for export for quarrying products resulted in 21% growth in the mining and quarrying industries. Tourism value added has experienced growth (1% est.) as well with long-stay arrivals experiencing a similar increase in growth. Tourist arrivals increased by 10% due to increased airlift from the UK market, however, arrivals from the US, Canada, Trinidad & Tobago and CARICOM markets all experienced declines. While noting that the 12-month moving average rate of inflation had slowed to 1.7% at the close of October 2014, they also stated that the average annual rate of employment had rose from 11.2% as at September 30, 2013 to 12.5% at the close of September 2014. The increase was a result of job losses attributed to Government’s fiscal consolidation program. In reference to the fiscal consolidation measures instituted over the past 18 months, the CBB noted that “foreign reserve movements in 2014 reverted to the normal pattern observed in 2010, 2011 and 2012.” The stabilization in foreign reserves is very positive and at December 31, 2014 reserves stood at $1,052 million or 14.5 weeks of imports. Savings from the consolidation exercise have been estimated at $181 million or 2.1% of GDP. Receipts from the Consolidation Tax ($20 mil), Municipal Solid Waste Tax ($39 mil) and Asset Tax ($14 mil) totaled $73 million while marked savings were recorded for the expenditure on wages and salaries and grants to public institutions; there were $53 million and $55 million respectively. At the close of the third quarter, the total revenue collected was estimated to be $95 million higher than projected. The CBB noted that “...increases in corporate taxes ($15 million), VAT ($6 million), excises ($7 million) and import duties ($7 million)” were recorded. A reduction in the level of food and beverage imports as well as declining intermediate goods imports resulted in the reduction of Retained Imports of approximately 0.4%. There was also an estimated 5% reduction in fuel imports; it should be noted that fuel prices also declined by 14% after July 2014. Electrical Components and Chemical exports recorded increases of 27% and 9% respectively while Rum exports declined by 13% the net effect was a 4% increase in the level of Domestic exports. The CBB noted that “the revised fiscal target deficit of 7.2% of GDP for Fiscal Year 2014/15 can be achieved, so long as total supplementaries do not raise expenditure by more than $65 million...”. When compared to its December 2013 figure ($203 million), the primary deficit - the fiscal deficit net of interest payments, improved to $7 million. While end of year net public sector debt to GDP was estimated at 73%, the CBB noted “Barbados’ debt level is not out of line with many industrialised countries, such as Italy, Ireland, the US and Singapore, which are more highly rated by credit rating agencies.” The CBB has proposed economic growth of approximately 2% for 2015. This projected growth is based on expected activity in both “tourism and construction activity, and the spin-off effects to wholesale, retail and business services sectors”.
7
Trading Activity by Market Regular There was a decline in Regular Market performance for 2014 when compared to its performance in 2013. Decreases of 11% and 19% were registered in both trading volume and value respectively. Table 4 below, illustrates a year on year statistical comparison of Regular Market activity for the reporting period. Decreases were seen across the board as the Average Share Volume, Value, Share Price and Number of Trades fell below their respective December 31, 2013 figures. Table 4 - Regular Market Statistical Comparison
Regular Market Year on Year Comparison
December 31, 2014
Total Share Volume Total Share Value Average Daily Share Volume Average Daily Share Value
$
Number of Trades Number of Trade Days Average Share Price
% Change
5,734,749
6,448,758
-11.07%
18,124,650
22,474,461
-19.35%
23,124
25,899
-10.71%
90,259
-19.03%
1,128
1,162
-2.93%
248
249
-0.40%
73,083
5.53
-0.47%
8/5
N/A
Local Index
2,137.26
2,995.52
-28.65%
Cross-Listed Index
1,706.54
1,486.78
14.78%
611.23
740.42
-17.45%
5,367,178,305
7,999,308,023
-32.90%
Composite Market Index Local Market Capitalization
5.50
$
8/7
Advance/Decline Ratio
$
December 31, 2013
$
Cross-Listed Market Capitalization
2,849,599,943
2,481,309,653
14.84%
Composite Market Capitalization
8,216,778,248
10,480,617,676
-21.60%
26
27
-3.70%
Number of Listed Securities
Figure 2 illustrates the breakdown of Regular Market trades which occurred during 2014. There was a decrease in the number of trades occurring on the Regular Market as 1,128 trades occurred in 2014 while 1,162 trades occurred in 2013; a decrease of 2.93%.
8 Figure 2 - Trade Frequency Comparison (Regular Market)
BSE Trade Frequency Comparison (Regular Market)
160
No. of Trades
140 120 100 80 60 40 20 0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
2014
64
152
103
81
101
97
99
110
91
77
75
78
2013
116
101
72
155
41
94
74
93
94
110
93
119
Table 5 and Table 6 show the top traded companies for the year in terms of volume and value. Fortress Caribbean Property Fund - Value Fund was the top performer for 2014; it was the only security to exceed the 1 million shares traded mark for the year. Sagicor Financial Corporation continues to be a strong performer being the second best performer in terms of volume traded. In terms of value traded, Goddard Enterprises Limited was the top performer followed by, Massy Holdings Limited; Emera (Caribbean) Incorporated rounded out the top three. Table 5 - Top Five Traded Companies by Volume – 2014
Company Fortress Caribbean Property Fund - Value Fund
2014
2013
2014
2013
Volume
Volume
Value
Value
1,329,650
61,038 $
718,681 $
25,187
Sagicor Financial Corporation
892,015
2,190,513 $
Fortress Caribbean Property Fund - Development Fund
863,605
121,087 $
179,168 $
15,820
Goddard Enterprises Limited
734,456
363,401 $ 4,564,527 $
2,225,152
Banks Holdings Limited
668,004
246,244 $ 1,963,232 $
733,970
1,753,542 $ 4,564,223
9 Table 6 - Top Five Traded Companies by Value – 2014
Company
2014
2013
2014
2013
Value
Value
Volume
Volume
Goddard Enterprises Limited
$
3,736,539
$
1,951,200
734,456
363,401
Massy Holdings Limited
$
1,838,491
$
1,278,997
198,658
159,654
Emera (Caribbean) Incorporated
$
1,490,318
$
2,604,032
81,832
49801
Banks Holdings Limited
$
1,030,326
$
2,176,238
668,004
246,244
Sagicor Financial Corporation
$
828,658
$
828,658
892,015
2,190,513
For the fourth quarter, Banks Holdings Limited, Sagicor Financial Corporation and Massy Holdings Limited were the top three performers in terms of volume traded; Goddard Enterprises Limited and Cave Shepherd and Company Limited rounded out the top five volume performers. Massy Holdings Limited, Banks Holdings Limited, Goddard Enterprises Limited, Cave Shepherd and Company Limited and Emera (Caribbean) Incorporated were the top performers in terms of value traded for the final quarter of 2014. 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
2014
2013
2014
2013
Company
Volume
Volume
Value
Value
Banks Holdings Limited
430,312
172,633 $
1,247,487 $
519,544
Sagicor Financial Corporation
147,611
899,326 $
263,224 $
1,960,191
Massy Holdings Limited
146,255
28,794 $ 2,952,653 $
496,699
Goddard Enterprises Limited
130,956
44,570 $
827,988 $
273,952
Cave Shepherd and Company Limited
115,067
87,842 $
343,987 $
256,997
Table 8 - Top Five Traded Companies by Value – 4th Quarter
Company
2014
2013
2014
2013
Value
Value
Volume
Volume
Massy Holdings Limited
$
2,952,653
$
496,699
146,255
28,794
Banks Holdings Limited
$
1,247,487
$
519,544
430,312
172,633
Goddard Enterprises Limited
$
827,988
$
273,952
130,956
44,570
Cave Shepherd and Company Limited
$
343,987
$
256,997
115,067
87,842
Emera (Caribbean) Incorporated
$
263,836
$
580
10,266
29
10 Junior and Block Trade Markets There was no activity on the Junior and Block Trade Markets for the year ended December 31, 2014.
Put-through Market There was a 45% decrease in volume and an associated 77% decrease in the value traded for the Put-through Market in 2014. The total volume and value traded in 2014 was 1,629,561 shares and $3,859,712 respectively. This is compared to a total volume of 2,959,128 shares with a corresponding value of $17,134,360 traded for the year ended December 31, 2013. Table 9 below, illustrates the activity which occurred on this market for 2014. Table 9 - Put-through Market Activity 2014
Security
No. of Trades
Volume
Value
Banks Holdings Limited
5
35,655 $
115,650
Cave Shepherd & Company Limited
1
1,600 $
3,536
Cable & Wireless (Barbados) Limited
1
1,400 $
3,920
FirstCaribbean International Bank
2
5,366 $
14,035
Goddard Enterprises Limited
3
90,396 $
574,725
Sagicor Financial Corporation
140
1,495,144 $
3,147,847
TOTAL
152
1,629,561 $
3,859,712
Fixed Income Market As at December 31, 2014 twenty-six (26) Barbados Government Debentures and fifteen (15) Barbados Government Treasury Notes traded on the board of the Exchange as compared to twenty-four (24) Barbados Government Debentures, sixteen (16) Barbados Government Treasury Notes and one (1) Government-backed security trading for the corresponding period in 2013. There were a total of 229 trades occurring on the Bond Market resulting in a face value of $9,921,000 trading as compared to 195 trades and a total face value of $43,370,000 trading as at December 31, 2013. Table 10 below summarizes all bonds traded for the period ended December 31, 2014. Table 10 - Fixed Income Market activity 2014
Security
No. of Trades
Amount Traded
Barbados Government Debenture 4.75% 2016
4
58,000
Barbados Government Debenture 5.875% 2018
8
110,000
Barbados Government Debenture 6.125% 2021
9
160,000
Barbados Government Debenture 6.25% 2019
8
29,000
Barbados Government Debenture 6.25% 2022
7
810,000
11 Security
No. of Trades
Amount Traded
Barbados Government Debenture 6.5% 2015
1
50,000
Barbados Government Debenture 6.625% 2018
1
52,000
Barbados Government Debenture 6.625% 2020
7
84,000
Barbados Government Debenture 6.75% 2021
3
7,000
Barbados Government Debenture 6.75% 2022
7
1,121,000
Barbados Government Debenture 6.875% 2023
22
346,000
Barbados Government Debenture 6.875% 2024
6
25,000
Barbados Government Debenture 7% 2017
8
654,000
Barbados Government Debenture 7% 2023
20
135,000
Barbados Government Debenture 7% 2024
1
1,000
Barbados Government Debenture 7.125% 2026
4
516,000
Barbados Government Debenture 7.25% 2025
1
10,000
Barbados Government Debenture 7.25% 2026
3
25,000
Barbados Government Debenture 7.25% 2028
4
22,000
Barbados Government Debenture 7.375% 2027
10
204,000
Barbados Government Debenture 7.375% 2029
6
6,000
Barbados Government Debenture 7.50% 2026
1
1,500,000
Barbados Government Debenture 7.75% 2020
2
105,000
Barbados Government Debenture 7.75% 2025
3
14,000
Barbados Government Debenture 7.75% 2032
2
2,000
Barbados Government Debenture 8.50% 2018
3
8,000
Barbados Government T/Note 4.125% 2015
1
2,000
Barbados Government T/Note 4.25% 2016
1
9,000
Barbados Government T/Note 4.375% 2014
1
1,000
Barbados Government T/Note 4.5% 2015
2
3,000
Barbados Government T/Note 5.875% 2015
4
220,000
Barbados Government T/Note 6% 2016
19
178,000
Barbados Government T/Note 6% 2017
3
16,000
Barbados Government T/Note 6% 2018
2
10,000
Barbados Government T/Note 6.125% 2021
2
49,000
Barbados Government T/Note 6.25% 2018
11
150,000
Barbados Government T/Note 6.375% 2019
2
2,000
Barbados Government T/Note 6.5% 2016
12
155,000
Barbados Government T/Note 6.5% 2019
4
3,016,000
Barbados Government T/Note 6.625% 2019
12
50,000
Barbados Government T/Note 7.25% 2014
2
6,000
TOTALS
229
9,921,000
12
Index and Market Capitalization Movement The Local and Composite Market measures recorded decreases at the close of 2014; the Cross-Listed Market measures continue to show improvements. The Local and Composite Indices recorded declines of 28.65% and 17.45% respectively while the Cross-Listed Index recorded an increase of 14.78%. The Cross-Listed Market Capitalization recorded an increase of 14.84% while the Local and Composite Market Capitalization measures both recorded decreases in excess of 20%. Table 11 illustrates the year on year changes in both index and market capitalization. Table 11 - Index and Market Capitalization - Year on Year
Index
14-Dec-14
31-Dec-13
% Change
Local
2,137.26
2,995.52
-28.65%
Cross-Listed
1,706.54
1,486.78
14.78%
611.23
740.42
-17.45%
14-Dec-14
31-Dec-13
% Change
Local
5,367,178,305
7,999,308,023
-32.90%
Cross-Listed
2,849,599,943
2,481,309,653
14.84%
Composite
8,216,778,248
10,480,617,676
-21.60%
Composite
Market Capitalization
For the fourth quarter of 2014, minor improvements were seen across the board for all market measures. The largest increases were seen for the Cross-Listed market measures as the Index recorded a 1.78% increase while the Market Capitalization measure recorded a 1.84% increase over its September 30, 2014 closing figure. Cross-Listed improvements, for both the year on year and fourth quarter results, can be attributed directly to the share price appreciation of both Massy Holdings Limited and One Caribbean Media Limited. Table 12, below, illustrates the fourth quarter index and market capitalization performance. Table 12 - Index and Market Capitalization - 4th Quarter
Index
14-Dec-14
30-Sep-14
% Change
Local
2,137.26
2,136.73
0.02%
Cross-Listed
1,706.54
1,676.68
1.78%
611.23
607.29
0.65%
14-Dec-14
30-Sep-14
% Change
Local
5,367,178,305
5,365,898,407.89
0.02%
Cross-Listed
2,849,599,943
2,798,239,354.90
1.84%
Composite
8,216,778,248
8,164,137,763
0.64%
Composite
Market Capitalization
13 Figure 3 below, illustrates index movement over the one year period 2013 – 2014. It clearly displays the sharp increase in Cross-Listed Index performance at the end of May 2014 when the traded price of Massy Holdings Limited climbed 13.04% from $17.25 at the opening of 2014 to $19.50; the closing price for Massy Holdings Limited at December 31, 2014 was $20.00. Figure 3 - Index Movement for 2013 – 2014
Year on Year Index Movement 20.00% 15.00% 10.00%
0.00%
Local Index
-5.00%
Cross-Listed Index Composite Index
-10.00% -15.00% -20.00% -25.00%
December
November
October
September
August
July
June
May
April
March
February
-35.00%
January
-30.00% December
% Change
5.00%
14
Advancers Decliners – 2014 For the year under review, of the twenty-six (26) securities listed at close, eight (8) advanced, seven (7) declined, seven (7) remained unchanged, four (4) did not trade; one (1) security previously listed was de-listed during the course of the year under review (See Table 13)4. This is compared to eight (8) of the twenty-seven (27) listed securities advanced, five (5) declined, seven (7) remained unchanged, five (5) did not trade and two (2) newly listed securities. Fortress Caribbean Property Fund - Development Fund recorded the greatest share price appreciation for 2014 climbing 100% from $0.11 at the close of 2013 to $0.22 at the close of 2014. One Caribbean Media Limited (29.17%), Fortress Caribbean Property Fund - Value Fund (25%), Massy Holdings Limited (15.94) and Cave Shepherd and Company Limited (11.11%) were the only other securities that had a share appreciation greater than 10%. The three remaining securities that experienced share price appreciation were Emera (Caribbean) Incorporated 5.5% Preference, West India Biscuit Company Limited and Goddard Enterprises Limited. Four (4) companies experienced declines in excess of 10% in 2014. Barbados Dairy Industries Limited suffered the largest decline as their share price fell by 50% at the end of 2014. FirstCaribbean International Bank, Sagicor Financial Corporation and Cable and Wireless (Barbados) Limited were the other companies to experience double digit declines (See Table 13 below). Table 13 - Total Trading Activity by Company (Regular and Junior Market only)
SECURITY
Year-end 2014
Year-end 2014
CLOSING PRICE
CLOSING PRICE
Volume
Value
Dec 31 2014
Dec 31 2013
% Change
8,333
$
2,540
0.32
0.32
0.00%
11,605
$
19,748
1.65
1.80
-8.33%
1,850
$
2,775
1.50
3.00
-50.00%
Barbados Farms Limited
52,166
$
27,206
0.50
0.50
0.00%
Banks Holdings Limited
668,004
$
1,963,232
2.90
3.03
-4.29%
Fortress C'bean Property Fund - Dev Fund
863,605
$
179,168
0.22
0.11 100.00%
1,329,650
$
718,681
0.50
0.40
25.00%
Cave Shepherd and Company Limited
171,317
$
478,267
3.00
2.70
11.11%
Cable and Wireless Barbados Limited
76,609
$
220,295
3.00
3.40
-11.76%
FirstCaribbean International Bank
127,326
$
261,733
1.80
2.98
-39.60%
Goddard Enterprises Limited
734,456
$
4,564,527
6.34
6.15
3.09%
ABV Investments Incorporated BICO Industries Limited Barbados Dairy Industries Limited
Fortress C'bean Property Fund - Val Fund
4
Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Securities Commission (now the Financial Services Commission), the shares of Barbados Shipping and Trading Company Limited were delisted from the Board of the BSE on February 5, 2014.
15 Year-end 2014
Year-end 2014
CLOSING PRICE
CLOSING PRICE
SECURITY
Volume
Value
Dec 31 2014
Dec 31 2013
Insurance Corporation Of Barbados Limited
368,232
$
943,085
2.41
2.60
-7.31%
3,100
$
969
0.15
0.15
0.00%
81,832
$
2,102,327
25.70
25.70
0.00%
330
$
1,082
3.30
3.11
6.11%
Massy Holdings Limited
198,658
$
3,982,979
20.00
17.25
15.94%
One Caribbean Media Limited
129,757
$
793,956
6.20
4.80
29.17%
587
$
1,327
2.26
2.26
0.00%
892,015
$
1,753,542
1.80
2.24
-19.64%
Trinidad Cement Limited
2,968
$
3,969
0.80
0.80
0.00%
West India Biscuit Company Limited
1,834
$
19,126
10.46
10.03
4.29%
10,515
$
84,115
8.00
8.00
0.00%
Royal Fidelity TIGRS A Fund (J)
0
$
-
10.50
10.50
0.00%
Royal Fidelity TIGRS A1 Fund (J)
0
$
-
10.00
10.00
0.00%
Royal Fidelity TIGRS A2 Fund (J)
0
$
-
10.00
10.00
0.00%
Royal Fidelity TIGRS A3 Fund (J)
0
$
-
10.00
10.00
0.00%
5,734,749
$
18,124,650
Jamaica Money Market Brokers Limited Light and Power Holdings Limited Light And Power Holdings Ltd 5.5% Pref
Sagicor Financial Corporation 6.5% Pref Sagicor Financial Corporation
The West Indies Rum Distilleries Limited
% Change
*(J) Denotes Junior Market; (DL) Denotes Delisted Security
For the fourth quarter, as illustrated in Table 14, four (4) securities advanced, five (5) declined, eight (8) remained unchanged and nine (9) did not trade. This is compared to three (3) securities advanced, two (2) declined, eleven (11) remained unchanged, nine (9) did not trade and two (2) new listings in the last quarter of 2013. Cave Shepherd and Company Limited (19.52%), Emera (Caribbean) Incorporated (6.11%), Massy Holdings Limited (2.56%) and Goddard Enterprises Limited (0.48%) were the only companies to register share price appreciation for the quarter. Barbados Farms Limited was the only company to record a double digit decline of 16.67% for the quarter.
16 Table 14 - Fourth Quarter Trading Activity by Company (Regular and Junior Market only)
SECURITY
4th Quarter 2014
4th Quarter 2014
Volume
CLOSING PRICE
CLOSING PRICE
% Change
Value
Dec 31 2014
Sept 30 2014
0.32
0.32
0.00%
ABV Investments Incorporated
3,333 $
1,000
BICO Industries Limited
6,837 $
11,231
1.65
1.75
-5.71%
0 $
-
1.50
1.50
0.00%
Barbados Farms Limited
23,945 $
12,063
0.50
0.60
-16.67%
Banks Holdings Limited
430,312 $
1,247,487
2.90
2.95
-1.69%
Fortress C'bean Property Fund - Dev Fund
42,809 $
8,531
0.22
0.22
0.00%
Fortress C'bean Property Fund - Val Fund
34,333 $
16,568
0.50
0.55
-9.09%
Barbados Dairy Industries Limited
115,067 $
343,987
3.00
2.51
19.52%
Cable and Wireless Barbados Limited
14,515 $
37,107
3.00
3.00
0.00%
FirstCaribbean International Bank
18,000 $
32,009
1.80
1.80
0.00%
130,956 $
827,988
6.34
6.31
0.48%
47,468 $
114,427
2.41
2.44
-1.23%
2,088 $
814
0.15
0.15
0.00%
10,266 $
263,836
25.70
25.70
0.00%
290 $
957
3.30
3.11
6.11%
146,255 $
2,952,653
20.00
19.50
2.56%
One Caribbean Media Limited
0 $
-
6.20
6.20
0.00%
Sagicor Financial Corporation 6.5% Pref
0 $
-
2.26
2.26
0.00%
1.80
1.80
0.00%
Cave Shepherd and Company Limited
Goddard Enterprises Limited Insurance Corporation Of Barbados Limited Jamaica Money Market Brokers Limited Emera (Caribbean) Incorporated Emera (Caribbean) Incorporated 5.5% Pref Massy Holdings Limited
147,611 $
263,224
Trinidad Cement Limited
0 $
-
0.80
0.80
0.00%
West India Biscuit Company Limited
0 $
-
10.46
10.46
0.00%
298 $
2,381
8.00
8.00
0.00%
Royal Fidelity TIGRS A Fund (J)
0 $
-
10.50
10.50
0.00%
Royal Fidelity TIGRS A1 Fund (J)
0 $
-
10.00
10.00
0.00%
Royal Fidelity TIGRS A2 Fund (J)
0 $
-
10.00
10.00
0.00%
0 $
-
10.00
10.00
0.00%
1,174,383 $
6,136,264
-
-
Sagicor Financial Corporation
The West Indies Rum Distilleries Limited
Royal Fidelity TIGRS A3 Fund (J) *(J) Denotes Junior Market; (DL) Denotes Delisted Security
17
Historical Company Trading Statistics As illustrated in Table 15, six (6) securities increased in price while twelve (12) declined over the last five years. Table 15 - Historical Five Year Price Range
CLOSING PRICE
CLOSING PRICE
CLOSING PRICE
CLOSING PRICE
CLOSING PRICE
CLOSING PRICE
% Change
SECURITY
31.12.2014
31.12.2013
31.12.2012
31.12.2011
31.12.2010
31.12.2009
ABV Investments Incorporated
$
0.32
$
0.32
$
$0.50
$
$
1.55
$
BICO Limited
$
1.65
$
1.80
$
$1.60
$
1.86
$
1.47
$
1.86
-11%
Barbados Dairy Industries Limited
$
1.50
$
3.00
$
$3.00
$
5.29
$
5.29
$
5.49
-73%
Barbados Farms Limited
$
0.50
$
0.50
$
$1.00
$
1.50
$
2.49
$
2.05
-76%
Banks Holdings Limited
$
2.90
$
3.03
$
$3.00
$
3.29
$
4.00
$
4.00
-28%
Fortress Caribbean Property Fund - Dev Fund
$
0.22
$
0.11
Fortress Caribbean Property Fund - Value Fund
$
0.50
$
0.40
Cave Shepherd and Company Limited
$
3.00
$
2.70
$
$4.68
$
4.60
$
4.48
$
6.20
-52%
Cable and Wireless (Barbados) Limited
$
3.00
$
3.40
$
$5.00
$
5.34
$
5.40
$
5.79
-48%
FirstCaribbean International Bank Limited
$
1.80
$
2.98
$
$3.05
$
2.90
$
3.00
$
2.75
-35%
Goddard Enterprises Limited
$
6.34
$
6.15
$
$5.40
$
6.00
$
5.90
$
6.00
6%
Insurance Corporation Of Barbados Limited
$
2.41
$
2.60
$
$2.60
$
2.50
$
3.05
$
3.01
-20%
Jamaica Money Market Brokers Limited
$
0.15
$
0.15
$
$0.15
$
0.10
$
0.10
$
0.15
0%
Emera (Caribbean) Incorporated
$
25.70
$
25.70
$
$25.70
$
25.70
$
12.00
$
11.52
123%
Emera (Caribbean) Incorporated 5.5% Pref -*
$
3.30
$
3.11
$
$3.11
$
3.11
$
3.11
$
3.10
6%
Massy Holdings Limited
$
20.00
$
17.25
$
$14.05
$
13.60
$
12.50
$
15.49
29%
One Caribbean Media Limited
$
6.20
$
4.80
$
$4.75
$
2.95
$
3.10
$
3.10
100%
Sagicor Financial Corporation 6.5% Pref
$
2.26
$
2.26
$
$2.08
$
2.00
Sagicor Financial Corporation
$
1.80
$
2.24
$
2.23
$
2.87
$
2.90
$
3.50
-49%
Trinidad Cement Limited
$
0.80
$
0.80
$
0.80
$
0.80
$
0.80
$
2.49
-68%
West India Biscuit Company Limited
$
10.46
$
10.03
$
10.01
$
10.01
$
10.01
$
9.14
14%
The West Indies Rum Distilleries Limited
$
8.00
$
8.00
$
8.00
$
$8.00
$
8.50
$
8.50
-6%
Royal Fidelity TIGRS A Fund (J)
$
10.50
$
10.50
$
10.50
$
$10.75
$
10.61
Royal Fidelity TIGRS A1 Fund (J)
$
10.00
$
10.00
$
10.00
$
$10.00
$
10.00
Royal Fidelity TIGRS A2 Fund (J)
$
10.00
$
10.00
$
10.00
Royal Fidelity TIGRS A3 Fund (J)
$
10.00
$
10.00
$
10.00
*(J) Denotes Junior Market; (DL) Denotes Delisted Security
1.25
1.55
-79%
18
Market Events – 2014 On January 2, 2014, the BSE made the following announcements: • The Barbados Stock Exchange Inc. (BSE) wishes to advise that the Corporate Governance Recommendations for Listed Companies on the Barbados Stock Exchange Inc. and Insider Trading Guidelines for Listed Companies on the Barbados Stock Exchange Inc. became enforceable on January 1, 2014. • The Barbados Stock Exchange Inc. (BSE) is pleased to announce the approval of the new domestic Rules of the BSE, which become effective on January 13, 2014. Copies of the Rules can be obtained at the Barbados Stock Exchange Inc., 8th Avenue, Belleville, St. Michael (limit of one per person) or can be downloaded from our website, www.bse.com.bb. On January 31, 2014, the BSE made the following announcement: • Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Barbados Shipping & Trading Company Limited (BST) will be delisted from the Board of the BSE on February 5, 2014. On February 5, 2014, the BSE made the following announcement: • Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Barbados Shipping & Trading Company Limited (BST) were delisted from the Board of the BSE on February 5, 2014. On August 25, 2014, the BSE made the following announcement: • Neal and Massy Holdings Limited - Please take note that effective August 25, 2014, the name of Neal and Massy Holdings Limited was changed to Massy Holdings Limited. On October 21, 2014, the BSE made the following announcement: • Almond Resorts Incorporated - Please take note that effective October 21, 2014, the name of Almond Resorts Incorporated was changed to ABV Investments Incorporated. On December 29, 2014, the BSE made the following announcement: • Light and Power Holdings Limited - Please take note that effective December 7, 2014, the name of Light and Power Holdings Limited was changed to Emera (Caribbean) Incorporated.
19
The Regulatory Roundup – 2014 1.
Name Changes
• Almond Resorts Inc. changed its name to ABV Investments Inc. effective May 28, 2014. • Neal & Massy Holdings Limited changed to Massy Holdings Ltd. effective July 24, 2014. • Light & Power Holdings Ltd. changed its name to Emera (Caribbean) Incorporated effective November 24, 2014. 2.
Rules of the BSE
Further amendments were made to the Rules of the Barbados Stock Exchange Inc. which became effective on January 13, 2014, including some short and medium term provisions recommended by the Financial Services Commission. Additional amendments will be made as needed during 2015. 3.
International Securities Market The Draft Rules of the International Securities Market were reviewed by the Financial Services Commission and several amendments were suggested. A second draft of the rules inclusive of these amendments will be resubmitted for review and approval.
approval must be sought from the Financial Services Commission for the demutualization of the BSE. 6.
Stamp Duty Adjudication
The adjudication process continued to go well and is fully utilized by market participants, stakeholders and the general public.
7.
National Consultation on Draft Regional Securities Law
The BSE was invited by the Ministry of Finance to take part in a general discussion with stakeholders regarding a draft model regional securities law proposed by CARICOM, which was held October 15 – 17, 2014 at Government Headquarters. The mandates of the Regional Securities Law are: • To create the framework for an integrated securities market in the region. • To provide a state of the art legal framework of the securities market with the hope of having a unified legal framework in the community.
8. Major Regulatory Objectives for 2015 4. Listings/De-listings
Barbados Shipping & Trading Company Limited de-listed from the board of the Exchange on February 5, 2014.
5.
Demutualization of the BSE
As recommended by Board of Directors, an independent review was done of the Valuation of the BSE and proposed Allocation of Value and the report was presented to members at the AGM held November 27, 2014. A Plan of Arrangement has been proposed as the legal vehicle that will be used to facilitate the Demutualization. Regulatory
• The completion of the Demutualization of the BSE. • Overseeing the full launch of the International Securities Market in Barbados. • Continue to update the Rules of the BSE to meet the needs of our developing capital market, as well as keeping up to date with IOSCO standards and the requirements of governing legislation. • To conduct Compliance Reviews on at least two member-brokers • Developing the website of the BSE as a source of regulatory information for use by investors, brokers, listed companies, and the general public.
20
Conclusion At the close of the third quarter of 2014 trading activity, especially in terms of trading volume performance, had surpassed their corresponding 2013 values. Contracting share prices resulted in less than favorable value performance, however, the return of stable activity was seen as positive. Fourth quarter 2014 performance, while promising, simply did not match that of 2013 which saw large transactions on both the Put Through (1,995,967 shares in Goddard Enterprises Limited at $6.25) and Block Trade Markets (12,907,292 shares in Banks Holdings Limited at $2.95). An examination of the index performance of some exchanges across the globe showed positive results for most international markets while all regional markets recorded declines in index performance. Table 16 below, illustrates that all of the international exchanges, with the exception of the London Stock Exchange’s FTSE 100, experienced increases in their index measure. The largest increase of 17.94% was recorded by NASDAQ’s Nasdaq 100 Index followed by the New York Stock Exchange’s S&P 500 Index which recorded an increase of 11.39%. In the Region, Barbados Stock Exchange Inc. (BSE) recorded the largest decrease of 17.45%, followed by the Jamaica Stock Exchange (JSE) with a decrease of 5.31%. The Trinidad and Tobago Stock Exchange (TTSE) and the Eastern Caribbean Stock Exchange (ECSE) also recorded declines of 2.88% and3.37% respectively. Table 16 - Year on Year Index Comparison
Index Name
Regional Exchange
Closing Dec 31 2014
Closing Dec 31 2013
% Change
Nasdaq 100
NASDAQ
4,236.28
3,592.00
17.94%
Dow Jones Industrial Average
NASDAQ and New York Stock Exchange
17,823.07
16,576.66
7.52%
S&P 500
New York Stock Exchange
2,058.90
1,848.36
11.39%
FTSE 100
London Stock Exchange
6,566.09
6,749.10
-2.71%
Nikkei 225
Tokyo Stock Exchange
17,450.77
16,291.31
7.12%
Hang Seng
Stock Exchange of Hong Kong
23,857.82 23,306.39
2.37%
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
611.23
740.42
-17.45%
76,353.39 80,633.55
-5.31%
1,150.91
1,185.05
-2.88%
140.64
145.55
-3.37%
As we look towards 2015, we are ever hopeful to see incremental improvements in market performance despite the many challenges being experienced in the wider economy. We will continue our infrastructural improvements, press ahead with the demutualization of the BSE and the establishment of our very own International Securities Market.
8th Avenue Belleville, St. Michael BB11114, Barbados T: (246) 436-9871/2 | F: (246) 429-8942 | www.bse.com.bb