Barbados Stock Exchange 1st Half Report - 2012

First Half Report 2012

Overview

Following the performance of the 1st Quarter, trading activity continued to be characterized by

decreases in both the total trading volume and total trading value, as illustrated in Table 1, when

compared to the corresponding period in 2011. Total trading volume decreased by 70% and total trading

value decreased by 92%. There was one (1) extra-ordinary transaction, pursuant to a take-over, which

brought to a close AMCL Holdings Limited bid for all issued and outstanding shares in ANSA McAL

(Barbados) Limited, compared to fourteen (14) extra-ordinary transactions in the corresponding period

for 2011. The Odd-Lot Market was the only market to record any improvement in activity and there was

no trading on the Block Trade Market.

The exclusion of the extra-ordinary transactions, however, paints a much more realistic picture of

market activity. Less the extra-ordinary transactions which occurred in both the first half of 2012 and

2011, total trading volume would have increased by 10% while total trading value would have fallen by

14%. These figures are in line with general market conditions as share prices have fallen thus giving

persons an excellent opportunity to purchase stock in lucrative companies at discounted prices. Falling

share prices have also given these persons the opportunity to purchase more stock with the same level

of investment thus resulting in an increase in the trading volumes.

Table 1 - Total Trading Activity - 1st

Half 2012

Market June June June June % Change % Change

2012 Volume 2011 Volume 2012 Value 2011 Value Volume Value

REGULAR 3,660,142 12,316,659 $ 18,201,636 $ 225,678,597 -70% -92%

ODD-LOT 110,448 86,445 $ 483,971 $ 416,668 28% 16%

PUT - THROUGH 72,415 178,056 $ 431,099 $ 915,939 -59% -53%

JUNIOR 2,000 3,200 $ 20,925 $ 34,400 -38% -39%

BLOCK TRADE - - $ - $ - NA NA

TOTAL 3,845,005 12,584,360 $ 19,137,631 $ 227,045,604 -69% -92%

Second quarter 2012 market performance showed some improvements even when taking into account

two extra-ordinary transactions which occurred during the second quarter of 2011. As illustrated in

Table 2 below total trading volume was up 3% while total trading value was down 35%. The Odd-Lot

P a g e | 2

Market was the only market recording any significant increases in performance as trading volume in this

Market increased by 59% with a corresponding value increase of 30%.

Table 2 - Trading Activity - 2nd

Quarter

Market Second Quarter

Second Quarter

Second Quarter

Second Quarter

% Change

% Change

2012 Volume 2011 Volume 2012 Value 2011 Value Volume Value

REGULAR 1,312,491 1,224,036 $ 4,208,295 $ 6,353,967 7% -34%

ODD-LOT 61,873 39,010 $ 261,643 $ 201,805 59% 30%

PUT - THROUGH 4,455 74,026 $ 26,953 $ 346,446 -94% -92%

JUNIOR 2,000 3,200 $ 20,925 $ 34,400 -38% -39%

BLOCK TRADE - - $ - $ - NA NA

TOTAL 1,380,819 1,340,272 $ 4,517,815 $ 6,936,618 3% -35%

Regular Market

The trading activity on the Regular Market for the first half of 2012 recorded decreases in both trading

volume and value of 70.28% and 91.93% respectively. The total volume of shares traded at the half year

was 3,660,142 as compared to the 12,316,659 shares traded for the corresponding period in 2011 as

illustrated in Table 3. Similarly, the total value traded decreased from $225,678,597 in the first half of

2011 to $18,201,636 for the corresponding period in 2012. As mentioned earlier, the inclusion of the

extra-ordinary transactions are the main determinant of the large differences in trading activity.

Excluding these transactions, Regular Market activity would have yielded an increase in volume traded

of 15% but a reduction in the value traded of 12%. The number of trades recorded during the first half of

2012 rose from 475 in 2011 to 487 in 2012; an increase of 2.53%. Figure 1 illustrates a monthly

comparison of the volume of trades for 2011 and 2012.

The Advance/Decline Ratio, which measures the number of companies whose share price increased or

'advanced' versus those whose share price decreased or 'declined', showed some minor declines in 2012

with 5 companies experiencing increases in their share price, down 3 from 2011 while 9 experienced

decreases; the same number of companies experienced declines in 2011.

P a g e | 3

Figure 1

Table 3 - Regular Market Comparison

Regular Market Year on Year Comparison

30-Jun-12 30-Jun-11 % Change

TOTAL SHARE VOLUME 3,660,142 12,316,659 -70.28%

TOTAL SHARE VALUE 18,201,636 225,678,597 -91.93%

AVERAGE DAILY SHARE VOLUME 29,281 100,135 -70.76%

AVERAGE DAILY SHARE VALUE $ 145,613 $ 1,834,785 -92.06%

NUMBER OF TRADES 487 475 2.53%

NUMBER OF TRADE DAYS 125 123 1.63%

AVERAGE SHARE PRICE $ 5.72 $ 6.04 -5.27%

ADVANCE/DECLINE RATIO 5/9 8/9 N/A

LOCAL INDEX 3,200.26 3,333.34 -3.99%

CROSS – LISTED INDEX 1,184.41 1,181.39 0.26%

COMPOSITE MARKET INDEX 722.40 740.38 -2.43%

LOCAL MARKET CAPITALIZATION 9,192,523,517 9,134,276,418 0.64%

CROSS-LISTED MARKET CAPITALIZATION 2,009,717,950 1,953,269,159 2.89%

COMPOSITE MARKET CAPITALIZATION 11,210,041,467 11,095,495,576 1.03%

NUMBER OF LISTED SECURITIES 26 25 4.00%

Table 4 and Table 5 show the top five companies traded in the Regular Market for the first half of 2012

based on volume and value respectively. Sagicor Financial Corporation was the top traded company for

the first half of 2012 in terms of volume, accounting for 29.68% of the total volume traded but was

second in terms of value traded accounting for 13.53% of the value traded. ANSA McAL (Barbados)

0

20

40

60

80

100

120

140

January February March April May June

2012 33 87 132 55 102 78

2011 59 119 100 40 79 78

No

. of

Trad

es

Trade Frequency Comparison

P a g e | 4

Limited, which accounted for 49.09% of the total value traded, was the top traded company in terms of

value.

Table 4 - Top five traded companies by volume -1st

half

2012 2011 2012 2011

Company Volume Volume Value Value

SAGICOR FINANCIAL CORPORATION 1,086,949 334,556 $ 2,465,313 $ 1,008,509

ANSA MCAL (BARBADOS) LIMITED 761,324 2,619,845 $ 8,945,557 $30,783,179

FIRSTCARIBBEAN INTERNATIONAL BANK 435,770 483706 $ 1,354,618 $ 1,495,400

GODDARD ENTERPRISES LIMITED 372,759 215,181 $ 2,216,495 $ 1,294,013

FORTRESS CARIBBEAN PROPERTY FUND 303,156 178,319 $ 269,851 $ 203,909

Table 5 - Top Five Traded Companies by Value –1st

Half

2012 2011 2012 2011

Company Value Value Volume Volume

ANSA MCAL (BARBADOS) LIMITED $ 8,945,557 $ 30,783,179 761,324 2,619,845

SAGICOR FINANCIAL CORPORATION $ 2,465,313 $ 1,008,509 1,086,949 334,556

GODDARD ENTERPRISES LIMITED $ 2,216,495 $ 1,294,013 372,759 215181

FIRSTCARIBBEAN INTERNATIONAL BANK $ 1,354,618 $ 1,495,400 435,770 483,706

CABLE AND WIRELESS BARBADOS LIMITED $ 706,969 $ 2,308,523 132,496 427,721

As Table 6 and Table 7 illustrate, Sagicor Financial Corporation was the top security traded for the 2nd

quarter in terms of both volume and value. Trading 639,222 shares or 48.63% of the volume traded,

they outperformed second place Banks Holdings Limited which only traded 123,624 or 9.40% of the

volume traded. Trading just over $1.4 million, Sagicor accounted for 33.14% of the value traded for the

second half while second place Goddard Enterprises Limited traded $692,939 or 16.38% of the value

traded.

Table 6 - Top Five Traded Companies by Volume –2nd Quarter

2012 2011 2012 2011


SAGICOR FINANCIAL CORPORATION 639,222 82,356 $ 1,401,525 $ 243,337

BANKS HOLDINGS LIMITED 123,624 76,433 $ 404,719 $ 302,080

GODDARD ENTERPRISES LIMITED 118,833 47,881 $ 692,939 $ 291,276

FIRSTCARIBBEAN INTERNATIONAL BANK 106,127 188,243 $ 331,262 $ 582,375

CABLE AND WIRELESS BARBADOS LIMITED 85,621 209,614 $ 456,496 $ 1,130,878

P a g e | 5

Table 7 - Top Five Traded Companies by Value –2nd Quarter

2012 2011 2012 2011


SAGICOR FINANCIAL CORPORATION $ 1,401,525 $ 243,337 639,222 82,356

GODDARD ENTERPRISES LIMITED $ 692,939 $ 291,276 118,833 47,881

CABLE AND WIRELESS BARBADOS LIMITED $ 456,496 $ 1,130,878 85,621 209,614

BANKS HOLDINGS LIMITED $ 404,719 $ 302,080 123,624 76,433

FIRSTCARIBBEAN INTERNATIONAL BANK $ 331,262 $ 582,375 106,127 188,243

Odd-Lot Market

The trading activity on the Odd-Lot Market continued to show improvements in both the volumes and

values traded for the first six months of 2012. The total volume of shares traded of 110,448 was 28%

more than the 86,445 traded for the same period in 2011 while the $483,971 represented a 16%

increase over the total value traded for the first half of 2011 - $416,668.

Table 8 and Table 9 illustrate the top five traded companies for the first half of 2012. Sagicor Financial

Corporation was the top performer for the half year in terms of total volume traded accounting for

29.04% of the volume traded on this market and 15.25% of the value traded. Neal and Massy Holdings

Limited commanded 17.67% of the value traded but only 5.69% of the volume traded; once again their

strong share price on the Odd-Lot Market ($13.60 as at June 30th, 2012) has made them the top traded

security by value for the first half of 2012.

Table 8 - Top five traded companies by volume -1st

half

2012 2011 2012 2011


SAGICOR FINANCIAL CORPORATION 32,078 23,498 $ 73,803 $ 70,983

BANKS HOLDINGS INCORPORATED 19,544 6,942 $ 64,060 $ 27,457


CABLE & WIRELESS (BARBADOS) LIMITED 11,931 11,114 $ 63,764 $ 59,977

INSURANCE CORPORATION OF BARBADOS LIMITED 8,528 7,989 $ 22,862 $ 24,055

Table 9 - Top five traded companies by value -1st

Half

2012 2011 2012 2011


NEAL & MASSY HOLDINGS LIMITED $ 85,530 $ 106,150 6,289 7,886


SAGICOR FINANCIAL CORPORATION $ 73,803 $ 70,983 32,078 23,498

BANKS HOLDINGS INCORPORATED $ 64,060 $ 27,457 19,544 6,942

CABLE & WIRELESS (BARBADOS) LIMITED $ 63,764 $ 59,977 11,931 11,114

P a g e | 6

For the second quarter of 2012 trading activity increased by 59% in terms of volume and 30% in terms of

value. The top performing security in terms of both volumes and values traded was Banks Holdings

Limited accounting for 28.26% of the volume traded and 21.72% of the value. Table 10 and Table 11

show the top five traded companies in terms of volume and value for the Odd-Lot Market over the

second quarter of 2012.

Table 10 - Top Five Traded Companies by Volume –2nd

Quarter

2012 2011 2012 2011


BANKS HOLDINGS INCORPORATED 17,485 1,742 $ 56,828 $ 6,889

SAGICOR FINANCIAL CORPORATION 17,011 9,361 $ 37,182 $ 28,152


INSURANCE CORPORATION OF BARBADOS LIMITED 4,050 4,746 $ 10,824 $ 14,169

NEAL & MASSY HOLDINGS LIMITED 3,800 3,999 $ 51,680 $ 54,315

Table 11 - Top Five Traded Companies by Value –2nd

Quarter

2012 2011 2012 2011


BANKS HOLDINGS INCORPORATED $ 56,828 $ 6,889 17,485 1,742

NEAL & MASSY HOLDINGS LIMITED $ 51,680 $ 54,315 3,800 3,999

SAGICOR FINANCIAL CORPORATION $ 37,182 $ 28,152 17,011 9,361


LIGHT & POWER HOLDINGS LIMITED $ 29,966 $ 1,980 1,166 89

Put Through Market

Table 12 - Put Through Market Activity - 1st

Half

Company Volume Value

GODDARD ENTERPRISES LIMITED 70,322 $425,154.75

SAGICOR FINANCIAL CORPORATION 2,093 $5,944.12

Junior Market

There was some activity on the Junior Market during the second quarter of 2012. Royal Fidelity's TIGRS

A Fund traded 2,000 shares with a value of $20,295.00.

Bond Market

For the first half of 2012, nineteen (19) Barbados Government Debentures and eleven (11) Barbados

Government Treasury Notes traded on the board of the Exchange as compared to fourteen (14)

P a g e | 7

Barbados Government Debentures and seven (7) Barbados Government Treasury Notes trading for the

corresponding period in 2011. There were a total of 141 trades occurring on the Bond Market resulting

in a volume of 9,977,500 bonds trading. The total face value of the bonds traded was $981,686,750.00.

Table 13 below summarizes all bonds traded for the first half of 2012.

Table 13 - Summary of Bonds Traded

Security Volume

BARBADOS GOVERNMENT DEBENTURE 4.25% 2013 1,000







BARBADOS GOVERNMENT DEBENTURE 6.625% 2020 3,007,000



BARBADOS GOVERNMENT DEBENTURE 7% 2017 512,000



BARBADOS GOVERNMENT DEBENTURE 7.375% 2027 5,503,000






BARBADOS GOVERNMENT T/NOTE 4.25% 2013 3,000

BARBADOS GOVERNMENT T/NOTE 6% 2016 63,000










TOTAL 9,977,500

P a g e | 8

Index and Market Capitalization Movement

There were mixed results in the indices and market capitalization when examined for over the past

three, six and twelve month periods. For the second quarter of 2012, as illustrated in Table 14, the Cross

Listed Index was the only index to record an increase over its March 31st 2012 figure by 1.87%; all other

indices recorded decreases. When the comparison is extended to six months (Table 15), the local index

was the only measure recording a decrease of 2.05% over its December 31st 2011 closing figure; the

Cross Listed Index recorded an increase of 3.69%. Over the twelve month period shown in Table 16, the

Cross Listed Index was the only index measure to record an increase of 0.26%. The Cross-Listed Index

performance can be attributed to share price appreciation in both Jamaica Money Market Brokers

Limited and One Caribbean Media Limited. Figure 2 below tracks the Index movement over the 12

month period.

The market capitalization comparisons illustrated in Table 17-19, closely mirror the performance of the

index comparisons discussed above over the same three, six and twelve month periods. The second

quarter Local Market Capitalization was impacted heavily when Almond Resorts Inc. share price fell by

60% from $1.25 to $0.501. First half performance shows improvement but is mainly driven by increases

in the share prices of the larger issuers namely FirstCaribbean International Bank, Sagicor Financial

Corporation 6.5% Pref. and Jamaica Money Market Brokers Limited.

Table 14 - Index Comparison 2nd Quarter

Index 30-Jun-12 31-Mar-12 % Change

LOCAL 3,200.26 3,261.28 -1.87%

CROSS LISTED 1,184.41 1,162.64 1.87%

COMPOSITE 722.40 725.94 -0.49%

Table 15 - Index Comparison 1st

half

Index 30-Jun-12 31-Dec-11 % Change

LOCAL 3,200.26 3,267.18 -2.05%

CROSS LISTED 1,184.41 1,142.23 3.69%

COMPOSITE 722.40 722.07 0.05%

Table 16 - Index Comparison year-on-year

Index 30-Jun-12 30-Jun-11 % Change

LOCAL 3,200.26 3,333.34 -3.99%

CROSS LISTED 1,184.41 1,181.39 0.26%

COMPOSITE 722.40 740.38 -2.43%

1 The Price Stabilization Rule came into effect halting trading in this security. After our Compliance Department

conducted the necessary due diligence the transaction was allowed and trading activity on the security was

resumed.

P a g e | 9

Table 17 - Market Capitalization comparison 2nd

quarter

Market Capitalization 30-Jun-12 31-Mar-12 % Change

LOCAL 9,192,523,516.72 9,319,483,622.90 -1.36%

CROSS LISTED 2,009,717,949.85 1,987,204,617.63 1.13%

COMPOSITE 11,210,041,466.57 11,314,638,241 -0.92%

Table 18 - Market Capitalization comparison 1st

half

Market Capitalization 30-Jun-12 31-Dec-11 % Change

LOCAL 9,192,523,517 9,127,101,474 0.72%

CROSS LISTED 2,009,717,950 1,896,819,202 5.95%

COMPOSITE 11,210,041,467 11,031,870,677 1.62%

Table 19 - Market Capitalization Comparison year-on-year

Market Capitalization 30-Jun-12 30-Jun-11 % Change

LOCAL 9,192,523,516.72 9,134,276,417.73 0.64%

CROSS LISTED 2,009,717,949.85 1,953,269,158.75 2.89%

COMPOSITE 11,210,041,466.57 11,095,495,576 1.03%

-4.50%

-4.00%

-3.50%

-3.00%

-2.50%

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

Pe

rce

nta

ge C

han

ge

Year on Year Index Movement

Local Index

Cross-Listed Index

Composite Index

Figure 2 - Index Movement - 12 months

P a g e | 10

Company Activity Comparative Report

For the first half of the year, ending June 30th 2012, five (5) securities advanced, nine (9) declined, five

(5) remained unchanged and six (6) did not trade with one (1) suspension. This is compared to eight (8)

securities advanced, nine (9) declined, three (3) remained unchanged and six (6) did not trade with one

delisting for the first half of 2011.

Jamaica Money Market Brokers Limited was the top advancer for the first half climbing 50% from $0.10

on December 31st 2011 to $0.15 at June 30th 2012. One Caribbean Media Limited and Insurance

Corporation of Barbados Limited rounded out the top three companies to increase in price during the

first six months of 2012 increasing 20.34% and 7.6% respectively. The two other companies to increase

in price were FirstCaribbean International and Sagicor Financial Corporation 6.5% Pref.

Four companies experienced declines in excess of 10% for the first six months of 2012. Almond Resorts

Incorporated suffered the largest decline as their price fell by 60% during the half. Sagicor Financial

Corporation, Barbados Farms Limited and Fortress Caribbean Property Fund were the other companies

to experience double digit declines for the half of 23.34%, 20.67% and 15% respectively.

Table 20 - 1

st Half Trading Activity by Company (Regular and Junior market only)

1st Half 2012

1st Half 2012 CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value June 30 2012

December 31 2011

ANSA MCAL (BARBADOS) LIMITED 761,324 $ 8,945,557 11.75 11.75 0.00%

ALMOND RESORTS INC. 10,000 $ 5,000 0.50 1.25 -60.00%

BICO INDUSTRIES LTD. 18,034 $ 33,543 1.86 1.86 0.00%

BARBADOS DAIRY INDUSTRIES LTD. 13,951 $ 73,801 5.29 5.29 0.00%

BARBADOS FARMS LTD. 28,969 $ 34,116 1.19 1.50 -20.67%

BARBADOS NATIONAL BANK INC. 0 $ - 5.50 5.50 0.00%

BANKS HOLDINGS LTD. 211,209 $ 696,994 3.25 3.29 -1.22%

BARBADOS SHIPPING & TRADING CO. LTD. 0 $ - 7.58 7.58 0.00%

FORTRESS CARIBBEAN PROPERTY FUND 303,156 $ 269,851 0.85 1.00 -15.00%

CAVE SHEPHERD AND CO. LTD. 58,772 $ 274,368 4.59 4.60 -0.22%

CABLE AND WIRELESS BARBADOS LTD 132,496 $ 706,969 5.30 5.34 -0.75%

FIRSTCARIBBEAN INTERNATIONAL BANK 435,770 $ 1,354,618 3.12 2.90 7.59%

GODDARD ENTERPRISES LTD. 372,759 $ 2,216,495 5.50 6.00 -8.33%

INSURANCE CORPORATION OF BARBADOS LTD. 104,524 $ 281,044 2.69 2.50 7.60%

JAMAICA MONEY MARKET BROKERS LIMITED 1,000 $ 150 0.15 0.10 50.00%

LIGHT AND POWER HOLDINGS LTD. 5,001 $ 128,526 25.70 25.70 0.00%

LIGHT AND POWER HOLDINGS LTD 5.5% PREF 0 $ - 3.11 3.11 0.00%

NEAL AND MASSEY HOLDINGS LTD. 34,846 $ 473,906 13.60 13.60 0.00%

ONE CARIBBEAN MEDIA LIMITED 63,382 $ 204,746 3.55 2.95 20.34%

SAGICOR FINANCIAL CORPORATION 6.5% PREF 18,000 $ 36,640 2.08 2.00 4.00%

SAGICOR FINANCIAL CORPORATION 1,086,949 $ 2,465,313 2.20 2.87 -23.34%

TRINIDAD CEMENT LTD. 0 $ - 0.80 0.80 0.00%

P a g e | 11

1st Half 2012

1st Half 2012 CLOSING PRICE

CLOSING PRICE

% Change


December 31 2011

WEST INDIA BISCUIT CO. LTD. 0 $ - 10.01 10.01 0.00%

THE WEST INDIES RUM DISTILLERIES LTD. 0 $ - 8.00 8.00 0.00%

ROYAL FIDELITY TIGRS A FUND 2,000 $ 20,925 10.50 10.75 -2.33%

ROYAL FIDELITY TIGRS A1 FUND 0 $ - 10.00 10.00 0.00%

TOTAL 3,662,142 $ 18,222,561

For the second quarter, two (2) securities advanced, ten (10) declined, five (5) remained unchanged and

eight (8) did not trade with one (1) suspension. This is compared to three (3) securities advanced, nine

(9) declined, six (6) remained unchanged and seven (7) did not trade in the corresponding period in

2011.

Table 21 - 2nd

Quarter Trading Activity By Company (Regular and Junior market only)

2nd Quarter

2012

2nd Quarter

2012

CLOSING PRICE

CLOSING PRICE

% Change


March 31 2012

ANSA MCAL (BARBADOS) LIMITED 0 $ - 11.75 11.75 0.00%

ALMOND RESORTS INC. 10,000 $ 5,000 0.50 1.25 -60.00%

BICO INDUSTRIES LTD. 16,735 $ 31,127 1.86 1.86 0.00%

BARBADOS DAIRY INDUSTRIES LTD. 13,951 $ 73,801 5.29 5.29 0.00%

BARBADOS FARMS LTD. 14,687 $ 16,978 1.19 1.20 -0.83%

BARBADOS NATIONAL BANK INC. 0 $ - 5.50 5.50 0.00%

BANKS HOLDINGS LTD. 123,624 $ 404,719 3.25 3.28 -0.91%

BARBADOS SHIPPING & TRADING CO. LTD. 0 $ - 7.58 7.58 0.00%

FORTRESS CARIBBEAN PROPERTY FUND 37,375 $ 31,591 0.85 0.90 -5.56%

CAVE SHEPHERD AND CO. LTD. 39,672 $ 181,518 4.59 5.00 -8.20%

CABLE AND WIRELESS BARBADOS LTD 85,621 $ 456,496 5.30 5.34 -0.75%

FIRSTCARIBBEAN INTERNATIONAL BANK 106,127 $ 331,262 3.12 3.13 -0.32%

GODDARD ENTERPRISES LTD. 118,833 $ 692,939 5.50 6.00 -8.33%

INSURANCE CORPORATION OF BARBADOS LTD. 37,045 $ 99,202 2.69 2.69 0.00%

JAMAICA MONEY MARKET BROKERS LIMITED 0 $ - 0.15 0.15 0.00%

LIGHT AND POWER HOLDINGS LTD. 3,441 $ 88,434 25.70 25.70 0.00%

LIGHT AND POWER HOLDINGS LTD 5.5% PREF 0 $ - 3.11 3.11 0.00%

NEAL AND MASSEY HOLDINGS LTD. 19,124 $ 260,086 13.60 13.60 0.00%

ONE CARIBBEAN MEDIA LIMITED 31,034 $ 100,977 3.55 3.21 10.59%

SAGICOR FINANCIAL CORPORATION 6.5% PREF 16,000 $ 32,640 2.08 2.00 4.00%

SAGICOR FINANCIAL CORPORATION 639,222 $ 1,401,525 2.20 2.30 -4.35%

TRINIDAD CEMENT LTD. 0 $ - 0.80 0.80 0.00%

WEST INDIA BISCUIT CO. LTD. 0 $ - 10.01 10.01 0.00%

THE WEST INDIES RUM DISTILLERIES LTD. 0 $ - 8.00 8.00 0.00%

ROYAL FIDELITY TIGRS A FUND 2,000 $ 20,925 10.50 10.75 -2.33%

ROYAL FIDELITY TIGRS A1 FUND 0 $ - 10.00 10.00 0.00%

TOTAL 1,312,491 $ 4,208,295 - -

P a g e | 12

Conclusion

Table 22 - Regional Comparison

First Half 2012

First Half 2011 Regional Index Performance

Three Month

Six Month

Twelve Month

Three Month

Six Month

Twelve Month

BSE Composite Index -0.49% 0.05% -2.43% 0.65% 9.66% -1.22%

JSE Market Index -4.36% -8.30% -1.35% 2.42% 3.95% 2.61%

TTSE Composite Index 1.07% 0.94% 7.61% 8.95% 13.70% 16.03%

A look at two of the other major regional exchanges above shows that while the Trinidad and Tobago

Stock Exchange's (TTSE) Composite Index is recording positive movements, the BSE's Composite Index

and the Jamaica Stock Exchange's (JSE) Market Index continue to come to terms with falling share

prices. The BSE recorded its highest positive index change over the six month period while the TTSE

recorded its highest positive change over the twelve month period. The JSE's Market Index was the only

one to record negative changes over the three, six and twelve month periods. A comparison of the index

performance over the same periods at the close of first half of 2011 shows that all markets are currently

experiencing some form of regression in index performance; perhaps due to the slow rate at which

economies are recovering.

The main highlights of the half were the final transaction pursuant to the take-over of ANSA McAL

(Barbados) Limited by AMCL Holdings Limited, the Offer made by Barbados Dairy Industries Limited

(BDI) to repurchase a maximum of 5% of its issued and outstanding shares, excluding those owned by its

parent company - Banks Holdings Limited - pursuant to its delisting from the board of the BSE, the

subsequent decision by the Directors of BDI to defer the delisting of its shares pending the publication of

new BSE "guidelines and procedures for the delisting and repurchase of securities that should better

provide for a delisting process in a manner which takes account of the practical considerations of listed

companies, minority shareholders and the regulatory environment" and finally Neal and Massy Holdings

Limited's decision to close and sell the Almond Resorts properties and said sale and closure's impact on

the listed security Almond Resorts Inc.

In his presentation of the Budgetary Proposal 2012-2013, the Honorable Christopher Sinckler - M.P.,

Minister of Finance and Economic Affairs, made specific mention to initiatives the Government is intent

on implementing in support of the development of the Capital Market in Barbados. The following are

the initiatives proposed:

Undertake Initial Public Offerings of 30% of the shares of Grantley Adams International Airport

Inc, the Oil Company and Barbados Port Authority, and the listing of these companies on the

Barbados Stock Exchange. Over the next few months, a valuation of the entities will be

undertaken and the IPO process initiated. The listing of these three major entities on the stock

exchange will serve to inject some much needed life in the exchange. The IPO process will be

P a g e | 13

undertaken in a manner that will ensure broad share ownership which promotes economic

democracy and market liquidity.

Providing a fiscal incentive for companies to list on the Junior Stock Market, where firms that

choose to list on the Barbados Stock Exchange’s Junior Stock Market will be provided with a tax

incentive2 for ten years structured as follows:

o An income tax holiday on 25% of the company’s operation for the first five years of the

ten year incentive period;

o A full income tax holiday for the first five years of the ten year

o incentive period;

o A half income tax holiday for the second half of the incentive period;

o An exemption from withholding tax on dividends and other distributions from

companies listed on the junior market;

o An exemption from transfer tax on transfers of shares in Junior market companies;

To promote liquidity and encourage economic democracy, in order for a company to qualify for

the above-mentioned tax incentives the following could be required:

o The company must have a minimum of 50 shareholders;

o No single shareholder should own more than 25% of the shares of the company and no

other shareholder should own more than 5% of the shares.

o If at any point these are violated the company must repay the Government all taxes

claimed.

The BSE is very pleased to see that recognition of the importance of the Capital Market in Barbados has

been given; especially the assistance given to further develop the Junior Market of the BSE. The tax

incentives offered should make equity financing a far more attractive option than the traditional debt

financing regime currently prevailing in Barbados. Supporting the Junior Market's development also

further emphasizes Government's commitment and support for SMEs and Entrepreneurs as the main

drivers of economic activity in an economy under duress from the effects of a prolonged recession. The

BSE formally wishes to express its gratitude to the Government of Barbados for providing it with the

opportunities to further develop and enhance the investment and financing opportunities for investors

and issuers of equity securities.

2 The BSE has formally written Minister Sinckler for clarification of the Tax Incentives outlined and the

requirements.

Barbados Stock Exchange 1st Half Report - 2012

Documents

Transcript of Barbados Stock Exchange 1st Half Report - 2012