Bourse Weekly Review-january 2nd 2012-Ye 2011

8/3/2019 Bourse Weekly Review-january 2nd 2012-Ye 2011

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BOURSE SECURITIES LIMITEDWeekly Market Review

2nd January 2012

Local stock market amongst top...Introduction

The local equity market experienced its best year since 2004 as the T&T CompositeIndex jumped 21.21% by the end of 2011 (Exhibit 1). This performance placed the localmarket fifth among the worlds top performing market in 2011 ahead of Jamaica at sixthplace and first in the Caribbean, this according to the Business Insider publication. Withexcess liquidity in the market, limited opportunities for investment, and volatility in theinternational markets, the local equity market surged to its highest all time year end value

since 2004. Local high-dividend paying stocks grew more attractive leading to P/Emultiple expansion. The expected increased liquidity arising from the settlement ofCLICO bonds may exacerbate the competitive search for the limited valuableopportunities and sustain the elevated levels at least in the short term. Correction of themarket maybe be anticipated.

In 2011, the T&T Composite Index closed at a market capitalisation of $94.5B, thehighest since 2007 as reflected in Exhibit 2.

Local/RegionalIndices

Indicesat@1Jan

2011

Indicesat@31st

December 2011

Change

Points

YTDReturnas@

31st December

11 USDEquivalent

TTSEComposite 835.64 1,012.87 177.23 21.21% 21.02%

TTSEAllTT 1,175.74 1,466.95 291.21 24.77% 24.57%

JSE Market 85,220.82 95,296.89 10,076.07 11.82% 10.86%

JSEAllJ'caComposite 80,793.80 102,049.26 21,255.46 26.31% 25.21%

BSEComposite 675.15 722.95 47.80 7.08% 7.08%

BSELocal 3,053.53 3,273.51 219.98 7.20% 7.20%

Exhibit1: Local andRegionalIndicesPerformance


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Major Developments in the Stock Market

In June 2011, the stock exchange adopted a new method for the determination of allclosing stock prices, the Volume Weighted Average Price (VWAP) method. This newsystem has resulted in higher volatility in prices given that a trade in any number of

shares has the ability to move prices compared to the previous system whereby aminimum number of shares needed to be traded for each Company to create movement inprices.

One of the major accomplishments of the capital market was the launch of the TTSEsUS Dollar Securities Market in August 2011. This caters to the needs of companieswishing to list or raise USD and investors who are interested in investing US Dollardenominated securities on the local Exchange. Only US Dollar Securities which havebeen registered with the Trinidad and Tobago Securities and Exchange Commission(SEC) are eligible for listing on the TTSE. The market was opened with the listing of 120million convertible redeemable preference shares issued by Sagicor Financial

Corporation (SFC).

Another notable development in the market was the demerger of BCB Holdings Limitedin October 2011. BCB Holdings Limited decided to reorganize the Company through ademerge of its Non-Belizean Business from its Belizean Business. It maintained thelisting of the Belizean component on the local stock exchange.


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T&T Equity Review

Trading Activity

For 2011, the total volume of shares traded was 564.1M, up from the 77.6M traded in2010.The total value traded for 2011 was $1.0B versus $864.3M in 2010. This representsa 19.3% increase in total traded value over last year. Investors should note that thevolumes and values included the 470.5M shares of JMMB ($181.3M) that crossed thefloor on August 5th and August 15th.

Volume Leaders

At the close of 2011, the Jamaican companies dominated four of the top five positions asvolume leaders. Jamaica Money Market Brokers Limited (JMMB) held the top spot asvolume leader, accounting for 475.7M or 84.3% of the total volume traded. The secondspot was held by National Commercial Bank of Jamaica Limited (NCBJ) whichaccounted for 23.9M or 4.2% of 2011 traded volumes. In third position was another crosslisted Jamaican company, Capital and Credit Financial Group Limited (CCFG) whichposted 10.3M in volumes crossing the floor for 2011. Rounding off the last two spotswere Angostura Holdings Limited (AHL) and again Jamaican Supreme Ventures Limited(SVL) which comprised of 1.8% and 1.0% respectively of the 475.7M traded.

Value Leaders

Republic Bank Limited (RBL) took the lead in the total values traded for the year as itaccounted for 18.7% or $193.3M of the total value traded. Volume leader JMMB took

the next spot with a contribution of $183.7M equivalent to 17.8% of the value traded forthe period. Neal and Massy Holdings Limited (NML) came in third with $123.2Mfollowed by AHL again at fourth with $77.9M. Taking the last spot in the top 5 valueleaders was National Enterprises Limited (NEL) which accounted for 6.3% or $65.4M.


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Advances and Declines

The number of stocks appreciating in price surpassed the stocks that depreciated in 2011.Of the 31 ordinary shares listed there were 20 advancers, 8 declines and 3 stocks pricesremaining unchanged.

JMMB had the largest upside, appreciating 223.1% for the year. This was followed byCCFG which gained 77.8%. Prestige Holdings Limited moved up 63.9%, NCBJ gained47.9% and taking the fifth spot was Unilever Caribbean Limited which advanced 44.3%.(Exhibit 4). Of these advancers, four of these stocks were in Bourses top picks for 2011.

On the decline side, Trinidad Cement Limited (TCL) captured the top spot falling 36.1%.Next was One Caribbean Media Limited (OCM) which decreased 32.4%. Taking thethird spot was National Flour Mills (NFM) which depreciated 23.9%. LJ Williams B wasdown 14.5% while Point Lisas Industrial Port Development Corporation Limited (PLD)declined 3.3% (Exhibit 5).


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Regional Markets

Jamaican Equity Market

In Jamaica, the JSE Market Index was up 11.82% for the year, while the Jamaica

Composite Index, which is comprised of only Jamaican companies, moved up 26.31%. InUSD terms, the JSE Market Index advanced 11.19%, while the Jamaican CompositeIndex advanced 25.96%. At the close of 2011, the Jamaican currency remained relativelystable and stood around J$85.72 to US$1.00.

Barbados Equity Market

The Barbados Market showed gains as the Barbados Composite and Local Indicesadvanced 7.08% and 7.20% respectively. Both indices were up due to the increase in the

price of Light and Power Holdings Limited (L&P) at the beginning of the first quarter.

This report is for informational purposes only and does not constitute an offer or solicitation to buy or sell

any securities discussed herein. The information and any data contained herein have been obtained from

financial data provided to us by the issuers of the subject securities. Investors wishing to purchase any of


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the securities mentioned should consult an investment adviser. Projections and estimates are those of

Bourse Securities based on current available information.

E-Mail us at [email protected] or phone 628-5550/ 9100 /3982

Bourse Weekly Review-january 2nd 2012-Ye 2011

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