Barbados Stock Exchange Inc - Yearend Report 2011

2011 Year End Report

The following report reviews the overall performance of the companies listed on the Barbados Stock Exchange for the

period January 1st, 2011 to December 31st, 2011 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 2009

Historical Company Trading statistics

Market Events

The Regulatory Roundup

Concluding Remarks

Overall Performance

General performance on the Board of the Barbados Stock Exchange Inc. (BSE) was good for the year 2011 due primarily

to two extraordinary transactions which occurred during the first half of the year. The early predictions of economic

growth in the local economy may have spurred on the activity of the first six to nine months of the year, however, the

continued uncertainty in the international economies, especially those of the U.S.A. and the Eurozone, led to a reduction

in the expectations of local economic performance which ultimately filtered down to the local capital market as was

evident to declines in trading activity during the last quarter of 2011. There were improvements in trading activity in

2011 when compared to the activity of 2010. Table 1 displays the Trading Activity Comparison for 2011/2010 and shows

that the overall market volume increased by 25% along with and associated increase in market value of 240%. As

mentioned earlier there were two extraordinary transactions - EMERA (Barbados) Holdings No. 2 Incorporated's

takeover of Light and Power Holdings Limited and AMCL Holdings Limited's takeover of ANSA McAL (Barbados) Limited.

If the overall market activity was adjusted for these transactions and the extraordinary transaction for 2010 - Block

Trade of 2,853,526 shares in ANSA McAL (Barbados) Limited at $11.75 - there would have been a decrease for 2011 of

34% in terms of both volume and value traded.

The Regular Market of the BSE welcomed one new listing on July 19th, 2011 when Sagicor Financial Corporation listed its

Sagicor Financial Corporation 6.5% Preference issue of 120 million shares at $2.00 after a successful Common Share

Rights Issue and Preference Share Offer exercise.

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Table 1: Trading Activity Comparison by Market

Market December December December December % Change

% Change

2011 Volume 2010 Volume 2011 Value 2010 Value Volume Value

Regular 16,162,861 10,690,300 $ 238,242,191 $ 36,527,841 51% 552%

Odd-Lot 170,741 207,095 $ 852,648 $ 998,348 -18% -15%

Put - Through 890,195 32,180 $ 3,465,480 $ 197,580 2666% 1654%

Junior 5,000 545 $ 53,750 $ 5,791 817% 828%

Block Trade - 2,853,526 $ - $ 33,528,931 -100% -100%

Total 17,228,797 13,783,646 $ 242,614,069 $ 71,258,490 25% 240%

Market indices have shown improvement in 2011 when compared to the closing figures for 2010. At year-end, the local,

cross-listed and composite indices had risen by 7.63%, 5.78% and 6.95% respectively above the 2010 year-end figures.

These increases were due primarily to the increase in traded price of Light and Power Holdings Limited (114.7%) on the

local market and an 8.8% increase in the traded price of Neal and Massy Holdings Limited; a cross-listed security.

Market Capitalization performed similarly with the local market cap experiencing an increase of 4.53% and the cross-

listed increasing by 5.55%.

Table 2 below illustrates the Trading Statistics Comparison 2010 - 2011. Quarters I and III were the most active; the former's activity was attributed to the two takeover transactions previously mentioned while the latter was as a result to the listing and trading of Sagicor Financial Corporation's 6.5% Preference shares.

Table 2: Trading Statistics Comparison 2010 - 2011

Number of

Shares Number of

Shares Market Value Market Value

Number of Transactions

Number of Transactions

Quarter 2011 2010 2011 2010 2011 2010

I 11,244,088 3,402,709 $220,108,986.48 $10,518,495 446 469

II 1,340,272 3,058,737 $ 6,936,617.89 $10,852,625 368 513

III 3,192,963 1,376,352 $ 8,712,824.43 $4,947,809 466 368

IV 1,451,474 5,945,848 $ 6,855,640.37 $44,943,788 294 449

Total 17,228,797 13,783,646 242,614,069 71,262,717 1,574 1,799

There was a 12.51% decrease in the number of trades occurring in 2011 as compared to 2010. There were 1,574 trades

in 2011 as compared to 1,799 for 2010. Figure 1: Total Trade Frequency Comparison, illustrates graphically how the

trade frequency has varied between 2011 and 2010.

Page 3 of 20

Figure 1: Total Trade Frequency Comparison

As illustrated in Table 3 below, there was a substantial decrease in both the volume and value traded for the fourth

quarter of 2011 when compared to the corresponding period in 2010. The Regular and Odd-Lot markets both recorded

declines for volume and value while there was no activity on the Junior and Block Trade markets for the quarter; the

were no block trades recorded for 2011. The Put-Through market, however, recorded a large increase of 31,609% in

terms of volume and 22,971% in terms of value.

Market indices for the fourth quarter also recorded declines. The cross-listed index recorded the greatest decline of

2.23% as two of the four cross-listed securities recorded decreases in the share price while the local index only declined

by 1.13%. Market capitalization performance for the fourth quarter also mirrored that of the indices as the local and

cross-listed market capitalizations fell by 2.21% and 1.89% respectively.

Table 3: Fourth Quarter Trading Activity Comparison

Market Fourth

Quarter Fourth

Quarter Fourth

Quarter Fourth

Quarter %

Change %

Change

2011 Volume 2010

Volume 2011 Value 2010 Value Volume Value

Regular 711,644 3,041,664 $ 4,192,379 $11,165,709 -77% -62%

Odd-Lot 36,212 47,894 $ 157,691 $ 232,497 -24% -32%

Put - Through 703,618 2,219 $ 2,505,571 $ 10,860 31609% 22971%

Junior - 545 $ - $ 5,791 -100% -100%

Block Trade - 2,853,526 $ - $33,528,931 -100% -100%

Total 1,451,474 5,945,848 $ 6,855,640 $44,943,788 -76% -85%

Page 4 of 20

Economic Factors

This segment of the report was compiled from the Review of Barbados' Economic Performance for 2011 and Prospects

for 2012 by the Central Bank of Barbados (CBB). The review states that the economy of Barbados ‘remained stable...in a

climate of undiminished international economic uncertainty.’ Preliminary estimates indicate 'little growth' of 0.5%.

Tourist numbers increased, but length of stay and average spending fell. The review also reported that, "There was no

significant expansion in the International Business and Financial Services(IBFS) sector, or in exports, and the public sector

was constrained in stimulating the economy by the need for fiscal consolidation. Apart from tourism, the growth sectors

were construction (4.4 percent) and transport and communications (0.6 percent)."

Tourism, which accounts for 12.3% of total Gross Domestic Product (GDP), experienced marginal growth during 2011 of

7% in long-term stay arrivals, however, the output of this sector only grew by 0.3%. Performance of the US and UK

markets increased by 5.5% and 4.4% respectively. Arrivals from Canada however, falling from 72,351 in 2010 to 71,970

in 2011; a decline of 0.5%. Arrivals from CARICOM improved primarily due to the advent of the low-cost carrier RedJet;

Trinidad and Tobago recorded an increase of 35% while there was a 9% increase in arrivals from all other CARICOM

nations. Cruise arrivals declined by 1% and this trend is expected to continue into 2012 as the number of cruise ship calls

is estimated to decrease.

Expansions in the non-traded sectors - construction, business and other services, transportation, storage and

communication - saw a reported 1.2% growth despite contraction in manufacturing, sugar and non-sugar agriculture.

The IBFS sector also recorded improved performance as the number of licensed IBFS companies increased by

approximately 3.8%.

The fiscal deficit fell from 7.4%1 in April 2011 to 4.8% of GDP and was reported to be in line Government's revised

targets in its Medium Term Fiscal Strategy (MTFS)2. Improvements were seen in tax receipts for the year ended

December 2011. Corporate tax receipts were up 1%, personal tax receipts 5% and property tax revenue was up 1%.

Value-Added Tax (VAT) receipts and excise tax receipts experienced increases greater than 10% recording increases of

16% and 12% respectively. Import duties, however, were down 6%.

The expected growth rate reported by the CBB is 1% or less, as prospects for growth are largely dependent on the

nature of the international economic climate. The CBB reports that medium term prospects are encouraging but these

too are hinged on the international economy 'settling down'. Construction and rehabilitation of tourism facilities and

Government's housing initiatives are expected to be the main drivers for the economy in 2012. Foreign exchange inflows

are expected to cover imports and other foreign payments and the foreign reserve is expected to cover the current 18

weeks of imports.

1 Note that all figures are provisional and reported from April to December 2011 as stated in the CBB's Review of Barbados'

Economic Performance for 2011 and Prospects for 2012. 2 The MTFS sets out policies designed to achieve a balanced budget by 2016/2017. This fiscal strategy is sustainable, as evidenced by

the following: (1) the cost of servicing the external debt will absorb less than 10 percent of foreign exchange earnings for the remainder of this decade; (2) there is no need to refinance a major borrowing on the international financial markets until 2021; (3) the annual interest cost of the total debt, domestic and foreign, is manageable at 22 percent of Government tax and other revenues; and (4) maturing domestic debt may be refinanced without difficulty because there remains considerable excess liquidity in the economy.

http://www.centralbank.org.bb/WEBCBB.nsf/(hpPublications)/0B9331454055A05F0425798800544D17/$FILE/Press%20Release.Review%20of%202011.pdf




Page 5 of 20

Trading Activity by Market

Regular

The performance of the Regular Market for 2011 has shown marked improvement when compared to its performance in

2010. Increases of 51.19% and 552.22% were registered in both trading volume and value respectively. While these

increases can be attributed to takeover transactions it must be noted that, although these transactions rarely occur in

our market, they are still fundamental to all stock markets and thus should not be discredited for their impact on market

performance. There were two extraordinary trades occurring during 2011 on the Regular Market. EMERA (Barbados)

Holdings No. 2 Incorporated purchased 7,189,812 shares of Light and Power Holdings Limited at $25.70 while AMCL

Holdings Limited purchased 2,788,400 shares of ANSA McAL (Barbados) Limited. The largest single non-takeover trade

occurred on July 20th, 2011 when 2 million shares of Sagicor Financial Corporation 6.5% Preference traded at $2.00.

Table 4: Regular Market Statistical Comparison

December 31

2011 December 31

2010 %

Change Total Share Volume 16,162,861 10,690,300 51.19%

Total Share Value 238,242,191 36,527,841 552.22%

Average Daily Share Volume 64,911 42,933 51.19%

Average Daily Share Value $ 956,796 $ 146,698 552.22%

Number of Trades 895 1,015 -11.82%

Number of Trade Days 249 249 0.00%

Average Share Price $ 5.78 $ 5.17 11.85%

Advance/Decline Ratio 6/12 8/12 N/A

Local Index 3,267.18 3,035.53 7.63%

Cross – Listed Index 1,142.23 1,079.79 5.78%

Composite Market Index 722.07 675.15 6.95%

Local Market Capitalization 9,127,101,474 8,731,191,373 4.53%

Cross-Listed Market Capitalization 1,896,819,202 1,797,129,101 5.55%

Composite Market Capitalization 11,031,870,677 10,543,413,165 4.63%

Number of Listed Securities 26 26 0.00%

Table 4 provides a statistical comparison of Regular Market activity for the reporting period. Improvements were seen in

all areas with the exception of the Advance/Decline ratio which still favors the decline side, recording a 6/12 ratio as

compared to the 2010 ratio of 8/12.

Figure 2 illustrates the breakdown of trades which occurred during 2011. There was a decrease in the number of trades

occurring on the Regular Market. There were 895 trades in 2011, representing a 11.82% decline when compared to the

1,015 trades which occurred in 2010.

Page 6 of 20

Figure 2: Trade Frequency Comparison (Regular Market)

Table 5 and Table 6 show the top traded companies for the year in terms of volume and value.

Table 5: Top Five Traded Companies by Volume – 2011

2011 2010 2011 2010

Company Volume Volume Value Value

Light and Power Holdings Limited 7,191,812 45,143 $ 184,829,568 $ 526,494

Ansa Mcal (Barbados) Limited 2,788,400 17,500 $ 32,763,700 $ 262,000

Sagicor Financial Corporation 6.5% Pref 2,000,000 0 $ 4,000,000 $ -

Sagicor Financial Corporation 1,073,982 1,624,611 $ 2,859,780 $ 4,876,071

FirstCaribbean International Bank Limited 707,569 1,236,959 $ 2,194,334 $ 3,514,955

Table 6: Top Five Traded Companies by Value – 2011

2011 2010 2011 2010

Company Value Value Volume Volume

Light and Power Holdings Limited $184,829,568 $ 526,494 7,191,812 45,143

Ansa Mcal (Barbados) Limited $ 32,763,700 $ 262,000 2,788,400 17,500

Sagicor Financial Corporation 6.5% Pref $ 4,000,000 $ - 2,000,000 0

Neal And Massey Holdings Limited $ 3,095,887 $ 2,581,384 225,226 186,221

Sagicor Financial Corporation $ 2,859,780 $ 4,876,071 1,073,982 1,624,611

For the fourth quarter, there was a 77% decrease in volume and a 62% decrease in value of shares traded. ANSA Mcal

(Barbados) Limited was the volume and value leader for the fourth quarter closing out their takeover transaction and

accounting for 24% of the volume traded and 47% of the value.

Page 7 of 20

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

2011 2010 2011 2010


Ansa Mcal (Barbados) Limited 168,555 0 $ 1,980,521 $ -

Sagicor Financial Corporation 118,953 690,176 $ 338,363 $ 2,050,214

FirstCaribbean International Bank Limited 117,530 321,027 $ 366,126 $ 963,081

Cave Shepherd and Company Limited 80,301 223,756 $ 367,808 $ 901,192

Banks Holdings Limited 44,575 1,019,234 $ 146,617 $ 4,076,936

Table 8: Top Five Traded Companies by Value – 4th Quarter

2011 2010 2011 2010


Ansa Mcal (Barbados) Limited $ 1,980,521 $ - 168,555 0

Neal And Massey Holdings Limited $ 537,268 $ 455,224 39,505 34,920

Cave Shepherd and Company Limited $ 367,808 $ 901,192 80,301 223,756

FirstCaribbean International Bank Limited $ 366,126 $ 963,081 117,530 321,027

Sagicor Financial Corporation $ 338,363 $ 2,050,214 118,953 690,176

Page 8 of 20

Odd Lot Market

The overall performance of the Odd-Lot Market was not as favorable as that of the Regular Market. It recorded declines

of 18% and 15% in volume and value respectively.

Sagicor Financial Corporation was the most active security trading in this market accounting for 35% of the volume

traded and 19% of the value traded. Goddard Enterprises Limited and Cable and Wireless (Barbados) Limited rounded

out the top three traded in terms of volume while Neal and Massy Holdings Limited and Goddard Enterprises Limited

rounded out the top three in terms of value. Table 9 and Table 10 illustrate the top traded companies by volume and

value.

Table 9: Top Five Traded Companies by Volume - 2011

2011 2010 2011 2010


Sagicor Financial Corporation 60,229 77,179 $164,581 $ 231,090

Goddard Enterprises Limited 20,802 18,040 $124,348 $ 109,628

Cable & Wireless (Barbados) Limited 17,184 23,499 $ 92,495 $ 34,176

Insurance Corporation of Barbados Limited 11,275 3,145 $ 33,642 $ 8,735

Neal & Massy Holdings Limited 10,458 12,701 $141,901 $ 182,349

Table 10: Top Five Traded Companies by Value - 2011

2011 2010 2011 2010


Sagicor Financial Corporation $164,581 $231,090 60,229 77,179

Neal & Massy Holdings Limited $141,901 $182,349 10,458 12,701

Goddard Enterprises Limited $124,348 $109,628 20,802 18,040

Light & Power Holdings Limited $124,106 $127,078 4,841 10,957

Cable & Wireless (Barbados) Limited $ 92,495 $134,176 17,184 23,499

Trading activity in the Odd-Lot Market during the last quarter of 2011 also declined. Trading volume and value were

down, recording decreases of 24% and 32% respectively. Sagicor Financial Corporation was the top traded security in

terms of both volume and value, trading 15,105 shares with a traded value of $42,330.00. The top five traded securities

in terms of volume and value are illustrated in Table 11 and Table 12 below.

Table 11: Top Five Traded Companies by Volume – 4th Quarter

2011 2010 2011 2010


Sagicor Financial Corporation 15,105 20,742 $ 42,330 $ 59,980

Barbados National Bank 5,698 444 $ 30,954 $ 2,473

Goddard Enterprises Ltd. 3,068 6,185 $ 18,163 $ 35,914

Cave Shepherd & Co. Ltd. 3,007 1,170 $ 13,832 $ 5,150

Cable & Wireless (Barbados) Limited 2,384 6,876 $ 12,734 $ 38,293

Page 9 of 20

Table 12: Top Five Traded Companies by Value – 4th Quarter

2011 2010 2011 2010


Sagicor Financial Corporation $ 42,330 $59,980 15,105 20,742

Barbados National Bank $ 30,954 $ 2,473 5,698 444

Light & Power Holdings Ltd. $ 22,462 $19,084 874 1,626

Goddard Enterprises Ltd. $ 18,163 $35,914 3,068 6,185

Cave Shepherd & Co. Ltd. $ 13,832 $ 5,150 3,007 1,170

Junior Market

The number of securities listed on the Junior Market was reduced from three to two when Sunbeach Communications

Incorporated was delisted from the Board of the Exchange on January 11th, 2011. Despite this, there was improvement

in both volume and value traded; 817% and 828% respectively. Of the two remaining securities listed - Royal Fidelity

TIGRS A Fund and Royal Fidelity TIGRS A1 Fund - only the former recorded any trading activity. There were seven trades

recorded totaling 5,000 shares with a value of $53,750.00. It also recorded a 1.32% increase in price from $10.61 at the

close of 2010 to $10.75 at the close of 2011.

Block Trade Market

There was no block trades for the year ended December 31, 2011.

Put-through Market There was a 2666% increase in volume and an associated 1654% increase in the value traded for the Put-through Market in 2011. Table 13 illustrates the activity which occurred on this market for 2010. Table 13: Put-through Market activity 2011

Company Volume Value

Almond Resorts Incorporated 5,000 $ 3,750.00

Banks Holdings Limited 115,739 $ 441,214.92

Barbados Farms Limited 7,184 $ 15,804.80

Barbados National Bank Incorporated 108,724 $ 604,982.00

Barbados Shipping & Trading Company Limited 2,688 $ 20,375.04

Cable & Wireless (Barbados) Limited 240,007 $ 1,296,037.80

FirstCaribbean International Bank (Barbados) Limited 12,398 $ 38,805.74

Fortress Caribbean Property Fund 100,000 $ 110,000.00

Goddard Enterprises Limited 6,572 $ 40,746.40

Neal & Massy Holdings Limited 5,973 $ 80,635.50

Sagicor Financial Corporation 285,910 $ 813,127.87

890,195 $ 3,465,480.07

Page 10 of 20

Fixed Income Market

There were 121 trades recorded on this market with a total volume of 5,477,000 bonds traded. Table 14 below, gives details on each bond traded. Table 144: Fixed Income Market activity 2011

Security No. of Trades

Amount Traded

Barbados Government Debenture 4.25% 2013 1 4,000




Barbados Government Debenture 6% 2020 1 1,000















Barbados Government T/Note 4.25% 2013 5 6,000




Barbados Government T/Note 5.875% 2015 5 4,000,000

Barbados Government T/Note 6% 2016 15 38,000

Barbados Government T/Note 6% 2017 1 10,000






Barbados Tourism Inc 8.25% 2015 3 4,000

Total 121 5,477,000

Page 11 of 20

Index and Market Capitalization Movement

There were increases across the board in terms of indices and market capitalization for 2011. The Local and Cross Listed

Indices recorded increases of 7.63% and 5.78% respectively. The local and cross-listed market capitalization also

experienced increases of 4.53% and 5.55% respectively.

Table 15 illustrates the year on year changes in both index and market capitalization.

Table 155: Index and Market Capitalization - year on year

Index 31-Dec-11 31-Dec-10 % Change

Local 3,267.18 3,035.53 7.63%

Cross Listed 1,142.23 1,079.79 5.78%

Composite 722.07 675.15 6.95%

Market Capitalization 30-Dec-11 31-Dec-10 % Change

Local 9,127,101,474 8,731,191,373 4.53%

Cross Listed 1,896,819,202 1,797,129,101 5.55%

Composite 11,031,870,677 10,543,413,165 4.63%

Unlike their year on year 2011 performance, both market indices and capitalization experienced declines for the fourth

quarter. The cross-listed index experienced the largest decline of 2.23% for the index while the local market

capitalization recorded the largest decline of 2.21%. These declines can be attributed to decreases in the share prices of

six locally listed securities and two cross listed securities.

Table 16, below, illustrates the fourth quarter index and market capitalization performance.

Table 166: Index and Market Capitalization - 4th Quarter

Index 30-Dec-11 30-Sep-11 % Change

Local 3,267.18 3,304.58 -1.13%

Cross Listed 1,142.23 1,168.29 -2.23%

Composite 722.07 733.32 -1.54%

Market Capitalization 30-Dec-11 30-Sep-11 % Change

Local 9,127,101,474.24 9,333,117,524.57 -2.21%

Cross Listed 1,896,819,202.45 1,933,337,803.55 -1.89%

Composite 11,031,870,676.69 11,274,405,328 -2.15%

Figure 3 below, illustrates index movement over the one year period 2010 – 2011. It clearly displays the sharp increase

in local index performance early in the year as a result of the Light and Power Holdings Limited takeover transaction

which saw the traded price increasing from $12.00 to $25.70. The cross-listed index movement can be attributed

primarily to movements in the share price of Neal and Massy Holdings Limited which began the year trading at $12.75,

peaking at $14.10 and closing finally at $13.60.

Page 12 of 20

Figure 3: Index Movement for 2009 – 2010

Advancers Decliners – 2011

For the year under review, six (6) of the twenty-six (26) originally listed securities advanced, twelve (12) declined, three

(3) remained unchanged, four (4) did not trade and one (1) new security was listed; there was one (1) delisted security3.

Light and Power Holdings Limited had the greatest share price appreciation for 2011 climbing 114.17%. BICO Limited

was the only other security that had a share appreciation greater than 10% with 26.53%. The four remaining securities

that experienced share price appreciation were Neal and Massy Holdings Limited with 8.80%, Cave Shepherd and

Company Limited with 2.68%, Goddard Enterprises Limited with 1.69% and Royal Fidelity TIGRS A Fund with 1.32%.

Six companies experienced declines in excess of 10% in 2011. Barbados Farms Limited suffered the largest decline as

their share price fell by 39.76% at the end of 20104. Fortress Caribbean Property Fund, Banks Holdings Limited,

Insurance Corporation of Barbados Limited, Almond Resorts Incorporated and ANSA McAL (Barbados) Limited were the

other companies to experience declines in excess of 10%.

3 Sunbeach Communications Limited delisted on January 11

th, 2011; security traded firm but not recorded as unchanged.

4 Barbados Farms Limited’s share price fell steadily from $2.49 at December 31, 2010 to $1.50 at the close of 2011. The Price

Stabilization Rule took effect on two occasions for this security (2011-03-17 and 2011-09-29) but on examination of the documentation provided by the brokers, both transactions were approved.

Page 13 of 20

Table 177: Total Trading Activity by Company (Regular and Junior Market - J - only)

Year-end

2011 Year-end

2011 CLOSING

PRICE CLOSING

PRICE

% Change

SECURITY Volume Value December 31 2011

December 31 2010

Ansa Mcal (Barbados) Limited 2,788,400 $32,763,700 11.75 14.80 -20.61%

Almond Resorts Incorporated 10,100 $ 10,738 1.25 1.55 -19.35%

BICO Limited 17,090 $ 27,975 1.86 1.47 26.53%

Barbados Dairy Industries Limited 0 $ - 5.29 5.29 0.00%

Barbados Farms Limited 61,892 $ 115,454 1.50 2.49 -39.76%

Barbados National Bank Incorporated 2,800 $ 15,400 5.50 5.57 -1.26%

Banks Holdings Limited 216,917 $ 820,070 3.29 4.00 -17.75%

Barbados Shipping & Trading Company Limited 0 $ - 7.58 7.58 0.00%

Fortress Caribbean Property Fund 223,855 $ 251,629 1.00 1.14 -12.28%

Cave Shepherd and Company Limited 239,929 $ 1,095,915 4.60 4.48 2.68%

Cable and Wireless Barbados Limited 501,759 $ 2,705,999 5.34 5.40 -1.11%

FirstCaribbean International Bank Limited 707,569 $ 2,194,334 2.90 3.00 -3.33%

Goddard Enterprises Limited 304,205 $ 1,827,349 6.00 5.90 1.69%

Insurance Corporation Of Barbados Limited 218,851 $ 649,534 2.50 3.05 -18.03%

Jamaica Money Market Brokers Limited 93,695 $ 9,665 0.10 0.10 0.00%

Light and Power Holdings Limited 7,191,812 $184,829,568 25.70 12.00 114.17%

Light And Power Holdings Limited 5.5% Pref 0 $ - 3.11 3.11 0.00%

Neal And Massey Holdings Limited 225,226 $ 3,095,887 13.60 12.50 8.80%

One Caribbean Media Limited 267,041 $ 824,990 2.95 3.10 -4.84%

Sagicor Financial Corporation 6.5% Pref 2,000,000 $ 4,000,000 2.00 - #DIV/0!

Sagicor Financial Corporation 1,073,982 $ 2,859,780 2.87 2.90 -1.03%

Trinidad Cement Limited 3,500 $ 3,300 0.80 0.80 0.00%

West India Biscuit Company Limited 13,238 $ 132,904 10.01 10.01 0.00%

The West Indies Rum Distilleries Limited 1,000 $ 8,000 8.00 8.50 -5.88%

Royal Fidelity TIGRS A Fund (J) 5,000 $ 53,750 10.75 10.61 1.32%

Royal Fidelity TIGRS A1 Fund (J) 0 $ - 10.00 10.00 0.00%

Total 16,167,861 $238,295,941

For the fourth quarter, two (2) securities advanced, seven (7) declined, five (5) remained unchanged and twelve (12) did

not trade. This is compared to six (6) securities advanced, nine (9) declined, three (3) remained unchanged and eight (8)

did not trade with one (1) suspension for the corresponding period in 2010.

Sagicor Financial Corporation and West India Biscuit Company Limited were the only companies to register price

appreciation for the quarter. Insurance Corporation of Barbados Limited and Banks Holdings Limited were the only two

companies to record declines in excess of 10%; 16.67% and 13.65% respectively. Two of the four cross-listed securities

experienced declines. These were Neal and Massy Holdings Limited (-2.16%) and One Caribbean Media Limited (-3.28%).

Page 14 of 20

Table 188: Fourth Quarter Trading Activity by Company (Regular and Junior Market - J - only)

4th Quarter 2011

4th Quarter 2011

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value December

31 2011 September

30 2011

Ansa Mcal (Barbados) Limited 168,555 $ 1,980,521 11.75 11.75 0.00%

Almond Resorts Incorporated 0 $ - 1.25 1.25 0.00%

BICO Limited 0 $ - 1.86 1.86 0.00%

Barbados Dairy Industries Limited 0 $ - 5.29 5.29 0.00%

Barbados Farms Limited 0 $ - 1.50 1.50 0.00%

Barbados National Bank Incorporated 0 $ - 5.50 5.50 0.00%

Banks Holdings Limited 44,575 $ 146,617 3.29 3.81 -13.65%

Barbados Shipping & Trading Company Limited 0 $ - 7.58 7.58 0.00%

Fortress Caribbean Property Fund 18,143 $ 18,143 1.00 1.05 -4.76%

Cave Shepherd and Company Limited 80,301 $ 367,808 4.60 4.60 0.00%

Cable and Wireless Barbados Limited 3,003 $ 16,036 5.34 5.35 -0.19%

FirstCaribbean International Bank Limited 117,530 $ 366,126 2.90 3.13 -7.35%

Goddard Enterprises Limited 41,457 $ 248,742 6.00 6.00 0.00%

Insurance Corporation Of Barbados Limited 38,930 $ 106,921 2.50 3.00 -16.67%

Jamaica Money Market Brokers Limited 30,000 $ 3,295 0.10 0.10 0.00%

Light and Power Holdings Limited 1,000 $ 25,700 25.70 25.70 0.00%

Light And Power Holdings Limited 5.5% Pref 0 $ - 3.11 3.11 0.00%

Neal And Massey Holdings Limited 39,505 $ 537,268 13.60 13.90 -2.16%

One Caribbean Media Limited 8,630 $ 26,209 2.95 3.05 -3.28%

Sagicor Financial Corporation 6.5% Pref 0 $ - 2.00 2.00 0.00%

Sagicor Financial Corporation 118,953 $ 338,363 2.87 2.70 6.30%

Trinidad Cement Limited 0 $ - 0.80 0.80 0.00%

West India Biscuit Company Limited 1,062 $ 10,631 10.01 10.00 0.10%

The West Indies Rum Distilleries Limited 0 $ - 8.00 8.00 0.00%

Royal Fidelity TIGRS A Fund (J) 0 $ - 10.75 10.75 0.00%

Royal Fidelity TIGRS A1 Fund (J) 0 $ - 10.00 10.00 0.00%

711,644 $ 4,192,379

Page 15 of 20

Historical Company Trading Statistics

As illustrated in Table 19, seven (7) securities increased in price while seventeen (17) declined over the last five years. It

must be noted, however, that the declines commenced when the effects of the global financial crisis began to affect the

economies of the Caribbean region towards the end of 2008.

Table 199: Historical Five Year Price Range

CLOSING

PRICE CLOSING

PRICE CLOSING

PRICE CLOSING

PRICE CLOSING

PRICE CLOSING

PRICE %

Change

SECURITY 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006

Almond Resorts Incorporated $ 1.25 $ 1.55 $ 1.55 $ 1.90 $ 2.13 $ 2.16 -73%

Ansa McAL (Barbados) Limited $ 11.75 $ 14.80 $ 16.00 $ 16.19 $ 20.14 $ 24.85 -111%

Banks Holdings Limited $ 3.29 $ 4.00 $ 4.00 $ 3.99 $ 4.30 $ 3.80 -16%

Barbados Dairy Industries Limited $ 5.29 $ 5.29 $ 5.49 $ 5.50 $ 7.34 $ 7.50 -42%

Barbados Farms Limited $ 1.50 $ 2.49 $ 2.05 $ 2.50 $ 4.00 $ 1.95 -30%

Barbados National Bank Incorporated $ 5.50 $ 5.57 $ 5.80 $ 6.30 $ 6.63 $ 6.80 -24%

Barbados Shipping & Trading Company Ltd. $ 7.58 $ 7.58 $ 7.60 $ 8.50 $ 8.80 $ 5.25 31%

BICO Limited $ 1.86 $ 1.47 $ 1.86 $ 1.86 $ 2.00 $ 1.80 3%

Cable and Wireless (Barbados) Limited $ 5.34 $ 5.40 $ 5.79 $ 5.60 $ 4.00 $ 3.12 42%

Cave Shepherd and Company Limited $ 4.60 $ 4.48 $ 6.20 $ 7.00 $ 6.05 $ 6.14 -33%

FirstCaribbean International Bank Limited $ 2.90 $ 3.00 $ 2.75 $ 3.32 $ 3.95 $ 3.60 -24%

Fortress Caribbean Property Fund $ 1.00 $ 1.14 $ 1.00 $ 1.55 $ 1.52 $ 1.44 -44%

Goddard Enterprises Limited $ 6.00 $ 5.90 $ 6.00 $ 7.09 $ 6.45 $ 6.30 -5%

Insurance Corporation Of Barbados Ltd. $ 2.50 $ 3.05 $ 3.01 $ 4.18 $ 3.85 $ 3.50 -40%

Jamaica Money Market Brokers Limited $ 0.10 $ 0.10 $ 0.15 $ 0.39 $ 0.55 $ 0.55 -450%

Light and Power Holdings Limited $ 25.70 $ 12.00 $ 11.52 $ 11.42 $ 10.55 $ 10.25 60%

Light And Power Holdings Ltd 5.5% Pref $ 3.11 $ 3.11 $ 3.10 $ 3.10 $ 3.00 $ 3.00 4%

Neal And Massy Holdings Limited $ 13.60 $ 12.50 $ 15.49 $ 15.85 $ 15.17 $ 15.72 -16%

One Caribbean Media Limited $ 2.95 $ 3.10 $ 3.10 $ 4.40 $ 6.25 $ 6.15 -108%

Sagicor Financial Corporation 6.5% Pref5 $ 2.00 $ - $ - $ - $ - $ - N/A

Sagicor Financial Corporation $ 2.87 $ 2.90 $ 3.50 $ 3.51 $ 5.20 $ 4.13 -44%

Sunbeach Communications Inc.6 $ 0.15 $ 0.15 $ 0.15 $ 0.26 $ 0.34 $ 0.55 -267%

Trinidad Cement Limited $ 0.80 $ 0.80 $ 2.49 $ 2.50 $ 2.50 $ 2.76 -245%

West India Biscuit Company Limited $ 10.01 $ 10.01 $ 9.14 $ 9.14 $ 9.20 $ 8.20 18%

The West Indies Rum Distilleries Limited $ 8.00 $ 8.50 $ 8.50 $ 8.50 $ 8.50 $ 9.00 -13%

Royal Fidelity TIGRS A Fund $ 10.75 $ 10.61 $ - $ - $ - $ - 1%

Royal Fidelity TIGRS A1 Fund $ 10.00 $ 10.00 $ - $ - $ - $ - 0%

5BSE Listing Notice - Sagicor Financial Corporation Pref 6.5% – We wish to announce that 120,000,000 Preference shares (@ $2.00)

in Sagicor Financial Corporation were listed today on the Exchange representing shares issued under the Rights Issue. (BSE Trading Report - 2011-07-19) 6BSE Notice of Delisting - Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Securities

Commission, the shares of Sunbeach Communications Inc. will be delisted from the Board of the BSE on January 11th, 2011. (BSE Trading Report - 2011-01-11)

Page 16 of 20

Market Events – 2011

On January 11th, 2011 pursuant to the Rules of the Barbados Stock Exchange Inc. and the Order of the Securities

Commission (now the Financial Services Commission, Sunbeach Communications Incorporated was delisted from the

Board of the BSE.

On January 19th, 2011 the first of two takeover transactions relating to AMCL Holdings Limited's offer for all remaining

shares of ANSA McAL (Barbados) Limited issued on the Board of the BSE occurred. A total of 2,788,400 shares were

traded at the agreed offer price of $11.75. On December 20th, 2010 AMCL Holdings Limited made an offer for all issued

and outstanding shares of ANSA McAL (Barbados) Limited listed on the Board of the BSE.

On January 24th, 2011 the offer made by EMERA (Barbados) Holdings No. 2 Incorporated to purchase all outstanding

common shares of Light and Power Holdings Limited closed. The offer price of $25.70 was a full $13.70 above the

market price at that time which was $12.00. The first trade occurred on January 31st, 2011 with a volume of 6,174,339

shares being traded with a traded value of $158,680,512.30. There were a total of 15 takeover trades in which 7,189,812

shares crossed the Board with a total value of $184,778,168.40.

On June 6th, 2011 Sagicor Financial Corporation announced that they would be conducting a Rights Issue and Preference

Share Offer which was scheduled to commence on June 15th, 2011. The Issue was conducted to facilitate the investment

of up to US $100 million in the Company by International Finance Corporation (IFC). The investment took the form of

US $20 million in Common Shares and up to US $80 million in Preference Shares. The investment as well as the creation

of a new class of Convertible Redeemable Preference Shares was approved by Shareholders at the Annual General

Meeting of the Shareholders of the Company held on June 2nd, 2011. The investment agreement with IFC provided that

prior to IFC’s investment, Qualifying Shareholders (those residing in Barbados and Trinidad only) would be afforded the

opportunity to participate in a Rights Issue of Common Shares and a new issue of newly created Convertible

Redeemable Preference Shares at the same prices offered to IFC. On June 15th, 2011 Sagicor Financial Corporation

announced the opening of a Rights Issue of 12,269,938 Common Shares at US $1.63 or BBD $3.26 per New Common

Share and a New Issue of 120,000,000 New Convertible Redeemable Preference Shares at USD $1.00 or BBD $2.00 per

New Convertible Preference Share. The Rights Issue was successfully conducted and on July 19th, 2011 Sagicor Financial

Corporation listed an additional 12,575,676 common shares and the Board of the BSE welcomed its newest listed

security - Sagicor Financial Corporation 6.5% Pref. (SFC65); 120 million Preference shares were listed with a stated price

of $2.00 per share.

On June 20th, 2011 the heads of the Barbados Stock Exchange Inc. Jamaica Stock Exchange and Trinidad and Tobago

Stock Exchange signed the Caribbean Exchange Network (CXN) Agreement.

In his Financial Statement and Budgetary Proposal on August 16th, 2011, the Minister of Finance and Economic Affairs -

the Honorable Christopher P. Sinckler, highlighted three areas in the local capital market where Government intends to

lend assistance. These were the International Securities Market (ISM), Dematerialization of Government Paper and

Prospectus Requirements for Small and Medium Sized Enterprises (SMEs). Minister Sinckler stated that, "The

International Securities Market (ISM) has the potential of creating a number of benefits for the country and the

International Business Community, further solidifying Barbados as an international business destination." He also noted

that, "Though long in coming, the establishment of the International Securities Market is well on its way to becoming a

Page 17 of 20

reality with the completion of a Business Plan and a draft Memorandum of Understanding for consideration by the

Ministry of Finance. I will, therefore, in the very near future, be approaching Cabinet for its support of this initiative."

The Minister also spoke to the introduction of "initiatives for the promotion of a secondary market" for the trading of

Government paper and other securities similar in nature. These initiatives he said would "provide additional investment

options for potential investors". Noting that the current system for trading these securities was 'cumbersome' he

expressed concern over the limitations of the system in allowing investors to maximize the returns on their investments.

To this end Minister Sinckler set January 1, 2012 as the effective date on which the sale and trading of all Government

Paper will be dematerialized. Finally Minister Sinckler discussed the relaxation of prospectus requirements for SMEs. He

noted that the current requirements under the Companies Act were 'somewhat onerous' for those SMEs seeking to raise

capital on the market and eventual listing on the Junior Market of the BSE. Citing recent developments in the United

Kingdom regarding two deregulatory amendments based on the European Union (EU) Prospectus Directives, Minister

Sinckler proposed, "That with effect from January 1, 2012, SMEs wishing to access equity through an issue of shares shall

under the following conditions be exempted from publishing a prospectus: issues shall be no more than $5 million

Barbados dollars, issues shall be made to no more than 500 persons (and) the issuing company must be listed on the

Barbados Stock Exchange".

Page 18 of 20

The Regulatory Roundup – 2011

This new section of the Annual Report features the activities of the BSE’s Compliance Department during the year 2011

and outlines its objectives for 2012.

Regulatory Highlights of 2011

1. Notices to the Market

2. Compliance Review of Broker Members

Notices to the Market

Our Notices to the Market are official policy documents drafted by the Compliance Department. The aim of the Notices

is to provide the market with the best practices, expected standards and requirements in relation to trading on the floor

of the Barbados Stock Exchange. In the year 2011, the following notices were issued:-

Guidance note in respect of transfer of shares (emphasis on take-over transactions)

These guidelines provide for fair and orderly transfer of shares especially in large transactions such as take-

over transactions where there may be a large volume of shares trading.

Contingency Fund Regulations.

The contingency fund regulations emphasized important provisions in the Securities Regulations 2002. S.I.

2002 No. 119 for compliance by brokers.

CXN – Registration Requirements for the Barbados Stock Exchange Inc.

The CXN registration requirements for the Barbados Stock Exchange Inc. were set out in this policy

document for CXN members to provide procedural steps for registration on the Barbados Stock Exchange.

Compliance Review Procedure

The Compliance Review procedure sets out the procedural steps taken in an on-site routine inspection of

the brokerage houses.

The Corporate Governance Recommendations

The Corporate Governance Recommendations were drafted as guidance for listed companies. The

recommendations provide international best practices for listed companies in relation to governance of

their respective corporations.

The Insider Trading Guidelines As investors need to feel confident that the trading in the market is fair, the insider trading guidelines have been issued to provide listed companies with procedures aimed at preventing insiders from gaining an unfair advantage by trading on material non-public information.

Compliance Reviews

A Compliance Review is an on-site routine inspection and is basically an investigation into the brokers’ level of

compliance with the rules of the Barbados Stock Exchange Inc., the Securities Act Cap 318 of the Laws of Barbados, the

Page 19 of 20

Securities Regulations 2002 S.I. 2002 No. 119 and any other applicable law, rule or regulation. Compliance Reviews are

important because they:

provide an opportunity for the Barbados Stock Exchange Inc. to determine and resolve any regulatory issues which might affect the market.

provide an avenue for a proactive rather than a reactive approach to regulation by detecting regulatory issues before they affect the market.

provide an opportunity for further education and training for our brokers.

Two compliance reviews of two broker members were completed in 2011.

Regulatory Objectives for 2012

Our focus for 2012 will be to improve regulatory oversight by:-

Finalizing and bringing into operation the new rules of the Barbados Stock Exchange Inc.;

Upgrading compliance with the Money-Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23; and

Upgrading compliance with the rules of the Barbados Stock Exchange Inc., the Securities Act, and through further educational initiatives.

Page 20 of 20

Conclusion

The year 2011 was one of moderate recovery. As the local economy continued to navigate the unpredictable waters of

the global recession so too has the local capital market as it continues to come to terms with the harsh realities of the

continuing global financial crisis. There were marked improvements in the volumes and values traded due to the two

takeover transactions that occurred on the market during the first quarter of 2011 which had positive effects on the

index and market capitalization results; both of which recorded improved performance.

An examination of the index performance of some exchanges across the globe showed mixed results and brings into

question the level of stability in these capital markets. Table 20 below, illustrates that most of the international

exchanges have experienced declines in their index measure with the exception of the Dow Jones Industrial Average

which experienced growth of 5.53% over its 2010 closing index. In the Region, all three major Exchanges experienced

growth with the Trinidad and Tobago Stock Exchange (TTSE) recording the largest increase of 21.21% in their Composite

Index. While these results are promising we must be cognizant of the fact that our dependence on the international

economies has a delayed ripple effect as far as regional/local economic performance and by extension regional/local

capital market performance . It is often said that our capital markets tend to lag the international markets by six months

therefore the numbers listed below should serve as a warning.

Table 20: Year on Year Index Comparison

Index Name Region/Exchange Closing Dec 31 2011

Closing Dec 31 2010

% Change

2011

Nasdaq NASDAQ 2,605.16 2,652.87 -1.80%

Dow Jones Industrial Average NASDAQ and New York Stock Exchange 12,217.56 11,577.51 5.53%

S&P 500 New York Stock Exchange 1,257.60 1,257.64 -0.003%

FTSE 100 London Stock Exchange 5,572.28 5,899.94 -5.55%

Nikkei 225 Tokyo Stock Exchange 8,455.35 10,228.92 -17.34%

Hang Seng Stock Exchange of Hong Kong 18,434.39 23,012.50 -19.89%

BSE Composite Index Barbados Stock Exchange 722.07 675.15 6.95%

JSE Market Index Jamaica Stock Exchange 95,297.20 85,220.82 11.82%

TTSE Composite Index Trinidad and Tobago Stock Exchange 1,012.87 835.64 21.21%

ECSE Index Eastern Caribbean Stock Exchange 144.8 139.16 4.05%

Economic recovery within in Barbados is closely linked to the rebounding of our major partners the North American and

European markets. Sectors most reliant on this recovery include both the tourism and the international and financial

business sectors; the two largest contributors to the island's gross domestic product (GDP). The deepening recession has

had severe affects of the disposable income of many Barbadians. Activity in the last quarter of 2011 is testament to the

realities of the economy the capital market exists in. Low or reduced economic activity will equate to low or reduced

capital market activity.

The year 2012 will be one of uncertainty, however, the BSE intends to put its best foot forward to ensure that all existing

and prospective investors experience the best investing experience possible through the delivery of a high quality

service from well trained, professional and knowledgeable staff.

Documents

Barbados Stock Exchange Inc - Yearend Report 2011