BSE First Quarter Report 2018 by BarbadosStockEx

BSE First Quarter Report 2018

Overview Overall trading volume and value decreased by 59% and 68% respectively for the first quarter of 2018. Regular Market activity fell marginally by 7% in terms of volume traded but experienced a 104% increase in terms of value traded. The Put-Through Market suffered declines in activity as the volume traded declined by 79% with a corresponding decline in the value traded on this market of 82%. There was no trading activity on either the Block Trade or Junior Market. The total number of trades at the close of the first quarter of 2018 experienced a 48% decline as 451 trades were conducted across the board of the BSE. This as compared to 860 trades conducted for the first quarter of 2017. Year to date and Year on Year market measures recorded favorable results. All Index and Market Capitalization measures benefitted from the upward price movements of several locally listed securities, with the Cross-Listed measures recording the highest increase. There was one (1) delisting during the first quarter of 20181. Table 1 - Year-to-Date Statistics, Quarter 1, 2018 shows a summary of year to date trading activity. Table 1 â&#x20AC;&#x201C; Trading Activity Comparison by Market â&#x20AC;&#x201C; Quarter 1, 2018

Market

Year-toDate

% Change

2018 Volume

2017 Volume

2018 Value

2017 Value

Volume

Value

1,923,203

2,059,708

$ 9,686,114

$ 4,741,537

-7%

104%

32,757

156,557

71,427

396,137

-79%

-82%

JUNIOR

BLOCK TRADE

2,519,171

$ 25,771,119

1,955,960

4,735,436

$ 9,757,540

$30,908,794

-59%

-68%

REGULAR PUT - THROUGH

TOTAL

Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of The West Indies Rum Distillery Limited were delisted from the Board of the BSE on February 22nd, 2018.

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Regular Market Regular Market volume decreased marginally by 7% during the first quarter of 2018, however, the value traded on the market increased substantially experiencing gains of 104% when compared to activity in the corresponding period in 2017. The reduction in volume activity can be attributed to the absence of transactions conducted either pursuant, or subsequent, to a takeover 2. Removal of this first quarter 2017 activity – volume and value – would have resulted in a 1% decrease in a 1% decrease in the volume traded and a larger 112% increase in the value traded. There was a decrease in the number of trades (24%) as 384 trades occurred during the first quarter of 2018, as compared to 505 trades for the corresponding period in 2017 as seen in Table 2 - 1st Quarter Regular Market Performance - Year on Year. A snapshot of the advance-decline ratio at the end of the first quarter of 2018 showed that eight securities advanced and six declined versus seven securities advancing in price and five declining at the close of the first quarter of 2017.

Table 2 – 1st Quarter Regular Market Performance – Year on Year

31-Mar-18 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

1,923,203 9,686,114 31,019 156,228 384 62 4.62 8/6 3,236.81 1,458.49 796.14 7,029,939,065 984,541,405 8,014,480,470 18

31-Mar-17

2,059,708 4,741,537 32,183 74,087 505 64 4.63 7/5 2,866.91 1,029.34 687.56 6,226,553,949 694,849,524 6,921,403,473 19

% Change -7% 104% -4% 111% -24% -3% 0% N/A 13% 42% 16% 13% 42% 16% -5%

During the first quarter of 2017, 111,513 shares in Trinidad Cement Limited (TCL) traded at $1.51 pursuant to Sierra Trading Limited’s takeover offer for TCL.

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Sagicor Financial Corporation repeated its first quarter 2017 performance as the most actively traded security on the market accounting for 44% of the number of trades occurring in the market. They were followed by Goddard Enterprises Limited and FirstCaribbean International Bank which accounted for 15% and 9% of the number of trades for the quarter in this market respectively. Figure 1 - No. of Trades - 1st Quarter 2018 illustrates the number of trades occurring on the Regular Market by Security. 200

170

150 100 50

56 10

No. of Trades Figure 1 – No. of Trades – 1st Quarter 2018

Table 3 and Table 4, illustrates the top traded securities for the quarter based on volume and value respectively. Goddard Enterprises Limited was the top performer in terms of both volume and value. Sagicor Financial Corporation Limited and Cave Shepherd and Company Limited rounded out the top three securities in terms of volume traded while Cave Shepherd and Company Limited and Sagicor Financial Corporation Limited rounded out the top three in terms of value traded.

Table 3 – Top Five Traded Securities by Volume

2018

2017

2018

2017

Company

Volume

Value

GODDARD ENTERPRISES LIMITED

543,109

96,129

$ 6,130,845

$ 884,969

SAGICOR FINANCIAL CORPORATION LIMITED

537,726

511,265

$ 1,137,825

$1,134,187

CAVE SHEPHERD & COMPANY LIMITED

295,255

55,440

$ 1,186,950

$ 192,288

FIRSTCARIBBEAN INTERNATIONAL BANK

199,767

58,025

566,804

$ 134,164

FORTRESS CARIBBEAN PROPERTY FUND - VALUE FUND

112,877

505,437

55,690

$ 271,748

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Table 4 â&#x20AC;&#x201C; Top Five Traded Securities by Value

2018

2017

2018

2017

Value

Volume

GODDARD ENTERPRISES LIMITED

$ 6,130,845

$ 884,969

543,109

96,129

CAVE SHEPHERD & COMPANY LIMITED

$ 1,186,950

192,288

295,255

55,440

SAGICOR FINANCIAL CORPORATION LIMITED

$ 1,137,825

$ 1,134,187

537,726

511,265

FIRSTCARIBBEAN INTERNATIONAL BANK

566,804

134,164

199,767

58,025

BANKS HOLDINGS LIMITED

257,758

507,238

36,304

71,442

Company

Junior Market, Block Trade Market & Put Through Market There was no trading activity recorded for the Block Trade, Junior Markets and ISM for the first quarter of 2018. The Put-through Market recorded decreases terms of both volume and value traded. The total volume of shares traded decreased by 79% while the total value of shares traded decreased by 82%. Table 5 - Put-through Market Activity - 1st Quarter 2018 illustrates the activity which occurred on this market as at March 31st, 2018.

Table 5: Put-through Market Activity - 1st Quarter 2018

Company

No. of Trades

Volume

Value

SAGICOR FINANCIAL CORPORATION LIMITED

32,757

71,427

TOTAL

32,757

71,427

Fixed Income Market The Fixed Income Market recorded a total of 61 trades in which twenty (20) Barbados Government Debentures and eight (8) Barbados Government Treasury Notes were traded with a face value of $30,732,000. This as compared to the 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 at the close of the first quarter of 2017. Table 6 - Fixed Income Market Activity - 1st Quarter 2018 gives details on each bond traded as at March 31st, 2018.

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Table 6: Fixed Income Market Activity - 1st Quarter 2018

Security

No. of Trades

Amount Traded

BARBADOS GOVERNMENT DEBENTURE 5.875% 2018

1,000

BARBADOS GOVERNMENT DEBENTURE 6.125% 2021

204,000

BARBADOS GOVERNMENT DEBENTURE 6.25% 2019

20,000

BARBADOS GOVERNMENT DEBENTURE 6.25% 2022

2,000

BARBADOS GOVERNMENT DEBENTURE 6.75% 2021

3,000

BARBADOS GOVERNMENT DEBENTURE 6.75% 2022

50,000

BARBADOS GOVERNMENT DEBENTURE 6.875% 2023

86,000

BARBADOS GOVERNMENT DEBENTURE 6.875% 2024

3,000

BARBADOS GOVERNMENT DEBENTURE 7% 2023

10,000

BARBADOS GOVERNMENT DEBENTURE 7% 2024

5,000

BARBADOS GOVERNMENT DEBENTURE 7.125% 2026

10,000

BARBADOS GOVERNMENT DEBENTURE 7.25% 2026

5,000

BARBADOS GOVERNMENT DEBENTURE 7.25% 2028

5,000

BARBADOS GOVERNMENT DEBENTURE 7.375% 2027

22,000

BARBADOS GOVERNMENT DEBENTURE 7.375% 2029

1,000

BARBADOS GOVERNMENT DEBENTURE 7.75% 2020

210,000

BARBADOS GOVERNMENT DEBENTURE 7.75% 2025

2,000

BARBADOS GOVERNMENT DEBENTURE 7.75% 2031

2,000,000

BARBADOS GOVERNMENT DEBENTURE 7.75% 2032

1,000

BARBADOS GOVERNMENT DEBENTURE 8.5% 2018

2,935,000

BARBADOS GOVERNMENT T/NOTE 5.5% 2020

16,000

BARBADOS GOVERNMENT T/NOTE 6% 2020

20,000

BARBADOS GOVERNMENT T/NOTE 6.25% 2018

15,104,000

BARBADOS GOVERNMENT T/NOTE 6.25% 2021

5,000

BARBADOS GOVERNMENT T/NOTE 6.375% 2019

10,001,000

BARBADOS GOVERNMENT T/NOTE 6.5% 2019

3,000

BARBADOS GOVERNMENT T/NOTE 6.5% 2025

1,000

BARBADOS GOVERNMENT T/NOTE 6.625% 2019

7,000

$30,732,000

TOTAL

The International Securities Market (ISM) There are two securities listed on the board of the ISM. There was no trading on the ISM as at March 31, 2018. The Market Capitalization of the ISM stood at US $87,766.298. Table 7 – International Securities Market – 1st Quarter 2018 illustrates the securities listed on the International Securities Market.

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The Barbados Stock Exchange Fifth Annual Conference on Corporate Governance and Accountability

Table 7: International Securities Market Summary – 1st Quarter 2018

SECURITY PRODUCTIVE BUSINESS SOLUTIONS LIMITED PRODUCTIVE BUSINESS SOLUTIONS LIMITED – PREF 9.75%

1st Quarter 2018

CLOSING PRICE USD $

Volume

Value

Dec 31 2017

ISSUED & OUTSTANDING

MKT CAP USD $

0.55

123,272,727

$67,800,000

0.77

25,800,000

$19,966,298

Index and Market Capitalization Movement A year on year comparison of the Index and market capitalization performance (Table 8 and Table 9) shows that all market measures experienced increases over the last 12 months. First quarter 2018 Cross Listed market measures showed the greatest improvement, recording a 42% increase - both index and market cap over their respective First Quarter 2017 positions. These improvements can be attributed to JMMB Group Limited’s share price climbing 133% from $0.15 on March 31st, 2017 to $0.35 at the close of trading on March 29th, 2018. Figure 2 Index Movement March 2017 to March 2018 illustrates the trend of the indices over the period under consideration. Table 8 – Index Comparison Year on Year

Index

31-Mar-18

31-Mar-17

% Change

LOCAL

3,236.81

2,866.91

12.90%

CROSS LISTED

1,458.49

1,029.34

41.69%

796.14

687.56

15.79%

COMPOSITE

Table 9 – Market Capitalization Comparison Year on Year

Market Capitalization LOCAL CROSS LISTED COMPOSITE

31-Mar-18

31-Mar-17

7,029,939,065 984,541,405 8,014,480,470

6,226,553,949 694,849,524 6,921,403,473

% Change 12.90% 41.69% 15.79%

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Year on Year Index Movement 50.00%

% CHANGE

40.00% 30.00% 20.00% 10.00% 0.00% Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

-10.00% Local Index

Cross-Listed Index

Composite Index

Figure 2 - Index Movement March 2017 to March 2018

The indices and market capitalization measures for the first quarter of 2018 (Table 10 and Table 11) showed relatively positive results as several locally listed securities experienced share price appreciation more than 5% over their closing positions as at December 31st, 2017. The Local Index and Market Capitalization measures showed improvement recording increases of 4.9% each respectively. While the Cross-Listed Index and Market Capitalization recorded negligible decreases of 0.34% due to a five-cent decline in the price of One Caribbean Media Limited. The Composite market measures both recorded increases to the tune of 4.22% when compared to their respective December 31st, 2017 results. Table 10 â&#x20AC;&#x201C; Index Comparison 1st Quarter 2018/2017

Index

31-Mar-18

31-Dec-17

% Change

LOCAL

3,236.81

3,085.74

4.90%

CROSS LISTED

1,458.49

1,463.40

-0.34%

796.14

763.88

4.22%

COMPOSITE

Table 11 â&#x20AC;&#x201C; Market Capitalization Comparison 1st Quarter 2018/2017

Market Capitalization LOCAL CROSS LISTED COMPOSITE

31-Mar-18

31-Dec-17

% Change

7,029,939,065

6,701,835,674

4.90%

984,541,405

987,852,189

-0.34%

8,014,480,470

7,689,687,863

4.22%

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Company Activity Comparative Report For the first quarter of 2018, eight (8) securities advanced, six (6) declined, one (1) remained unchanged and four (4) did not trade – Emera Deposit Receipt declined in price but did not trade; there was one (1) delistings3. This as compared to seven (7) securities advanced, five (5) declined, three (3) remained unchanged and four (4) did not trade – Emera Deposit Receipt advanced in price but did not trade; there were two (2) delistings. Barbados Dairy Industries Limited was the top performer for the quarter climbing 20% from $2.50 at the close of 2017 to $3.00 at the close of the first quarter of 2018. BICO Limited (18%) and Fortress Caribbean Property Fund – Value Fund (17%) were the remaining securities experiencing double digit increases during the quarter. ABV Investments Incorporated (67%), Barbados Farms Limited (15%) and Emera Deposit Receipt (15%) were the only securities to record double-digit declines at the close of the first quarter of 2018. Table 12 - 1st Quarter Trading Activity by Security illustrates the price movements for the first quarter of 2018.

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Table 12 - 1st Quarter Trading Activity by Security (Regular and Junior market only)

SECURITY

1st Quarter 2018

Volume

Value

CLOSING PRICE

% Change

Dec 31 2017 0.15

-66.67%

ABV INVESTMENTS INCORPORATED

11,900

595

Mar 31 2018 0.05

BICO LIMITED

59,116

$ 170,655

2.98

2.52

18.25%

BARBADOS DAIRY INDUSTRIES LIMITED

1,168

3,424

3.00

2.50

20.00%

BARBADOS FARMS LIMITED

1,939

1,331

0.68

0.80

-15.00%

BANKS HOLDINGS LIMITED

36,304

$ 257,758

7.10

0.00%

FORTRESS CARIBBEAN PROPERTY FUND DEVELOPMENT FUND

84,174

13,021

0.16

0.15

6.67%

FORTRESS CARIBBEAN PROPERTY FUND â&#x20AC;&#x201C; VALUE FUND

112,877

55,690

0.55

0.47

17.02%

CAVE SHEPHERD AND COMPANY LIMITED

295,255

$1,186,950

4.00

4.03

-0.74%

CABLE AND WIRELESS BARBADOS LIMITED

2.29

0.00%

FIRSTCARIBBEAN INTERNATIONAL BANK

199,767

$ 566,804

2.90

2.68

8.21%

GODDARD ENTERPRISES LIMITED

543,109

$6,130,845

11.30

11.11

1.71%

38,254

$ 132,469

3.45

3.70

-6.76%

INSURANCE CORPORATION OF BARBADOS LIMITED JMMB GROUP LIMITED

0.35

0.00%

EMERA DEPOSIT RECEIPT

15.68

18.44

-14.97%

163

6.25

6.30

-0.79%

SAGICOR FINANCIAL CORPORATION LIMITED 6.5% PREF

2.26

0.00%

SAGICOR FINANCIAL CORPORATION LIMITED

537,726

$1,137,825

2.14

2.10

1.90%

18.00

17.35

3.75%

ONE CARIBBEAN MEDIA LIMITED

WEST INDIA BISCUIT COMPANY LIMITED TOTAL

1,588 2,059,708

28,584

$4,741,537

* Denotes delisted security

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Table 13 â&#x20AC;&#x201C; Year on Year Trading Activity by Security, below, illustrates the price movements over the last twelve months. At the close of the first quarter of 2018, eight (8) securities have experienced price increases of 15%, or more, over their March 31st, 2017 position while no securities experienced a decline more than 15%. Table 13 - Year on Year Trading Activity by Security (Regular and Junior market only)

CLOSING PRICE Mar 31 2018

CLOSING PRICE Mar 31 2017

% Change

ABV INVESTMENTS INCORPORATED

0.05

0.02

150.00%

BICO INDUSTRIES LIMITED

2.98

2.19

36.07%

BARBADOS DAIRY INDUSTRIES LIMITED

3.00

1.95

53.85%

BARBADOS FARMS LIMITED

0.68

0.35

94.29%

BANKS HOLDINGS LIMITED

7.10

0.00%

FORTRESS CARIBBEAN PROPERTY FUND - DEVELOPMENT FUND

0.16

0.15

6.67%

FORTRESS CARIBBEAN PROPERTY FUND - VALUE FUND

0.55

0.53

3.77%

CAVE SHEPHERD AND COMPANY LIMITED

4.00

3.45

15.94%

CABLE AND WIRELESS BARBADOS LIMITED

2.29

2.45

-6.53%

FIRSTCARIBBEAN INTERNATIONAL BANK

2.90

2.40

20.83%

11.30

9.27

21.90%

INSURANCE CORPORATION OF BARBADOS LIMITED

3.45

3.79

-8.97%

JMMB GROUP LIMITED

0.35

0.15

133.33%

15.68

17.38

-9.78%

ONE CARIBBEAN MEDIA LIMITED

6.25

6.80

-8.09%

SAGICOR FINANCIAL CORPORATION LIMITED 6.5% PREF

2.26

0.00%

SAGICOR FINANCIAL CORPORATION LIMITED

2.14

2.38

-10.08%

8.00

18.00

17.26

4.29%

SECURITY

GODDARD ENTERPRISES LIMITED

EMERA DEPOSIT RECEIPT

THE WEST INDIES RUM DISTILLERIES LIMITED* WEST INDIA BISCUIT COMPANY LIMITED *Denotes delisted security

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Conclusion Table 14 - Year to date Index Comparison

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

BSX INDEX BISX INDEX

Closing March 31 2018

Closing Dec 31 2017

% Change

796.14

763.88

4.22%

294,533.10

288,381.97

2.13%

1,263.93

1,266.35

-0.19%

150.67

156.55

-3.76%

Bermuda Stock Exchange

2,491.23

2,202.19

13.13%

Bahamas International Securities Exchange

1,962.11

2,063.57

-4.92%

BSE first quarter 2018 performance, when compared to BSE first quarter of 2017 figures, can be deemed as favorable for the BSE. While there were overall declines in trading volumes and values it must be noted that these results were recorded because of declines in activity on the negotiated markets – Put Through and Block Trade. Regular Market performance, although skewed, displayed marked improvements in the value traded despite a reduction in the volume of shares traded; a clear indicator of share price appreciation. An examination of first quarter 2018 closing indices for exchanges across the region (Table 14) when compared to their closing values as at December 31st, 2017 reveal continued improvements for the BSE, that the Bermuda Stock Exchange (BSX) and the Jamaica Stock Exchange (JSE). The BSX Index recorded the largest increase of 13.13%, followed by the BSE Composite Index 4.22% while the JSE Market Index recorded a 2.13% increase. The Bahamas International Securities Exchange’s (BISX) Index recorded the largest decline of 4.92%. Closer to home, the Eastern Caribbean Stock Exchange’s (ECSE) Index and Trinidad and Tobago Stock Exchange’s (TTSE) Composite Index recorded declines of 3.76% and 0.19% respectively.

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