Third Quarter Report 2011

Overview

At the close of the first nine months of 2011 the Barbados Stock Exchange (BSE) was still recording

increases in both trading volume and value. Total trading volume of shares traded increased by 101%

while total trading value of shares traded recorded an increase of 796% when compared with the

corresponding period in 2010. As mentioned in previous reports, these increases can be attributed to

the two takeover transactions which occurred earlier this year for ANSA McAL Barbados Limited and

Light and Power Holdings Limited which collectively accounted for 62.18% of the total volume traded

and 91.44% of the total value traded.

All markets, with the exception of the Odd-Lot Market, experienced increases in both volume and value

for the period. The Put-Through Market experienced the largest increase of 523% in terms of volume

traded while the Regular Market recorded the largest increase in terms of value of 823% for 2011. There

was also nominal activity in the Junior Market.

Sagicor Financial Corporation successfully conducted a rights issue exercise and simultaneously listed a

new issue of preference shares; the security was named Sagicor Financial Corporation 6.5% Pref.

Table 1 - Trading activity for first nine months

Market Year-to-Date

Year-to-Date

Year-to-Date Year-to-Date % Change

% Change

2011 Volume

2010 Volume

2011 Value 2010 Value Volume Value

Regular 15,451,217 7,648,636 $ 234,049,812 $ 25,362,132 102% 823%

Odd-Lot 134,529 159,201 $ 694,957 $ 765,850 -15% -9%

Put - Through 186,577 29,961 $ 959,910 $ 186,720 523% 414%

Junior 5,000 - $ 53,750 $ - NA NA

Block Trade - - $ - $ - NA NA

Total 15,777,323 7,837,798 $ 235,758,429 $ 26,314,702 101% 796%

The third quarter was characterized by increases in trading activity across the market with the exception

of the Put Through Market which recorded a decline of 9% in the volume traded but a 34% increase in

the value traded. Total trading volume and value for the quarter were up 132% and 76% respectively.

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During the quarter, Sagicor Financial Corporation conducted a rights issue exercise which saw a total of

12,575,676 additional shares being listed1 as well as a new listing of 120,000,000 shares in Sagicor

Financial Corporation 6.5% Pref2.

Table 2 - Trading Activity for Third Quarter

Market Third Quarter

Third Quarter

Third Quarter Third Quarter % Change

% Change

2011 Volume

2010 Volume

2011 Value 2010 Value Volume Value

Regular 3,134,558 1,320,116 $ 8,371,215 $ 4,732,383 137% 77%

Odd-Lot 48,084 46,897 $ 278,289 $ 181,156 3% 54%

Put - Through 8,521 9,339 $ 43,970 $ 32,702 -9% 34%

Junior 1,800 - $ 19,350 $ - NA NA

Block Trade - - $ - $ - NA NA

Total 3,192,963 1,376,352 $ 8,712,824 $ 4,946,242 132% 76%

Regular Market

The Regular Market continued to record increases in both the volume and values traded at the end of

the third quarter. As illustrated in Table 3 below, the total share volume was 15,451,217, representing

an increase of 102.01% over the 7,648,636 shares recorded for the same period in 2010. There was also

a noticeable increase of 822.83% in the value of shares traded at the end of the quarter as compared to

the same period in 2010. There was a minimal 3.21% increase in the number of trades occurring on the

Regular Marketing days as 772 trades took place thus far in 2011 compared to 748 for 2010. Figure 1

illustrates a monthly comparison of the volume of trades for 2010 and 2011.

While there was a regression in the advance to decline ratio, improvements were seen in both the local

and composite indices while the Cross-Listed Index continued to record a year-on-year decrease. The

Local Index recorded an increase of 8.63% and the Composite index recorded an increase of 2.48%.

Similar results were recorded for the Market Capitalization, where the Local and Composite Market

Capitalization recorded increases of 6.06% and 2.82% respectively while the Cross-Listed Market

Capitalization recorded a decline of 10.12%.

1Additional Shares Listed - Sagicor Financial Corporation – We wish to announce that 12,575,676 common shares

in Sagicor Financial Corporation were listed today on the Exchange representing shares issued under the Rights Issue. (BSE Trading Report - 2011-07-19) 2 BSE 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)

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Figure 1

Table 3 - Year on Year Regular Market Statistics

30-Sep-11 30-Sep-10 % Change

Total Share Volume 15,451,217 7,648,636 102.01%

Total Share Value 234,049,812 25,362,132 822.83%

Average Daily Share Volume 82,627 41,344 99.85%

Average Daily Share Value $ 1,251,603 $ 137,093 812.96%

Number of Trades 772 748 3.21%

Number of Trade Days 187 185 1.08%

Average Share Price $ 5.84 $ 5.25 11.27%

Advance/Decline Ratio 7/12 8/10 N/A

Local Index 3,304.58 3,042.04 8.63%

Cross – Listed Index 1,168.29 1,251.07 -6.62%

Composite Market Index 733.32 715.55 2.48%

Local Market Capitalization 9,333,117,525 8,799,778,871 6.06%

Cross-Listed Market Capitalization 1,933,337,804 2,151,100,780 -10.12%

Composite Market Capitalization 11,274,405,328 10,965,606,342 2.82%

Number of Listed Securities 26 25 4.00%

Table 4 and Table 5 below show the top traded companies by volume and value for the year-to-date.

Light and Power Holdings Limited and ANSA McAL (Barbados) Limited continue to be two top traded

0

20

40

60

80

100

120

140

160

Jan Feb Mar Apr May Jun Jul Aug Sep

2011 59 119 100 40 79 78 74 71 152

2010 49 60 134 124 96 66 86 52 81

No

. of

Trad

es

Trade Frequency Comparison

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securities in terms of both volume and value for the period January 1, 2011 to September 30, 2011. Light

and Power Holdings Limited trading activity accounted for 46% of the total volume traded and 78% of

the total value traded. The newly listed Sagicor Financial Corporation 6.5% Pref recorded one trade

which was substantial enough for it to be the third highest traded security in terms of both volume and

value at the end of the third quarter.

Table 4 - Top Five Traded Companies by Volume: Year to date

2011 2010 2011 2010

Company Volume Volume Value Value

LIGHT AND POWER HOLDINGS LIMITED 7,190,812 39,318 $184,803,868 $ 457,733

ANSA MCAL (BARBADOS) LIMITED 2,619,845 17,500 $ 30,783,179 $ 262,000

SAGICOR FINANCIAL CORPORATION 6.5% PREF 2,000,000 - $ 4,000,000 $ -

SAGICOR FINANCIAL CORPORATION 955,029 934,435 $ 2,521,417 $ 2,825,857

FIRSTCARIBBEAN INTERNATIONAL BANK LIMITED 590,039 915,932 $ 1,828,208 $ 2,551,874

Table 5 - Top Five Traded Companies by Value: Year-to-Date

2011 2010 2011 2010

Company Value Value Volume Volume

LIGHT AND POWER HOLDINGS LIMITED 184,803,868 $ 457,733 7,190,812 39,318

ANSA MCAL (BARBADOS) LIMITED $ 30,783,179 $ 262,000 2,619,845 17,500

SAGICOR FINANCIAL CORPORATION 6.5% PREF $ 4,000,000 $ - 2,000,000 -

CABLE AND WIRELESS BARBADOS LIMITED $ 2,689,963 $ 1,741,294 498,756 303,894

NEAL AND MASSEY HOLDINGS LIMITED $ 2,558,619 $ 2,126,160 185,721 151,301

As Table 6 and Table 7 illustrate, Sagicor Financial Corporation's common shares and the recently listed

Sagicor Financial Corporation 6.5% Pref were the top two traded securities for the third quarter in terms

of both volume and value. FirstCaribbean International Bank Limited was the third in terms of volume

while Neal and Massy Holdings Limited was the third in terms of value.

Table 6 - Top Five Traded Companies by Volume: 3rd Quarter

2011 2010 2011 2010

Company Volume Volume Value Value

SAGICOR FINANCIAL CORPORATION 6.5% PREF 2,000,000 - 4,000,000 $ -

SAGICOR FINANCIAL CORPORATION 620,473 313,389 $1,512,908 $ 944,473

FIRSTCARIBBEAN INTERNATIONAL BANK LIMITED 106,333 276,228 $ 332,808 $ 796,604

CABLE AND WIRELESS BARBADOS LIMITED 71,035 194,860 $ 381,440 $1,107,026

NEAL AND MASSEY HOLDINGS LIMITED 63,935 9,205 $ 889,387 $ 135,774

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Table 7 - Top Five Traded Companies by Value: 3rd Quarter

2011 2010 2011 2010

Company Value Value Volume Volume

SAGICOR FINANCIAL CORPORATION 6.5% PREF $ 4,000,000 $ - 2,000,000 -

SAGICOR FINANCIAL CORPORATION $ 1,512,908 $ 944,473 620,473 313,389

NEAL AND MASSEY HOLDINGS LIMITED $ 889,387 $ 135,774 63,935 9,205

LIGHT AND POWER HOLDINGS LIMITED $ 403,387 $ 257,300 15,696 22,000

CABLE AND WIRELESS BARBADOS LIMITED $ 381,440 $ 1,107,026 71,035 194,860

Odd- Lot Market

The Odd-Lot market continued to record decreases in trading volume and value for the first nine months

of 2011. The total volume of shares traded of 134,529 was -15% less than the 159,201 shares traded for

the same period in 2010. The total value of shares traded on the Odd-Lot Market fell by 9%. The 2011

value traded was $694,957 as compared to $765,850 traded at the close of the third quarter of 2010.

Table 8 and Table 9 illustrate the top five traded companies for the first nine months of 2011. Sagicor

Financial Corporation was the most actively traded security in terms of volume for the year to date,

trading 45,124 shares valued at $122,252. The were followed by Goddard Enterprises Limited and Cable

and Wireless (Barbados) Limited which traded 17,734 and 14,800 shares respectively.

Although Neal and Massy Holdings Limited’s share price of $13.90 was some eighty-five cents less than

it was at the close of the third quarter of 2010 ($14.75), this security still recorded the highest value of

shares traded - $141,901 or 20% of the total value traded - at the close of the third quarter. Sagicor

Financial Corporation and Goddard Enterprises Limited rounded out the top three companies traded by

value.

Table 8 - Top Five Traded Companies by Volume: Year-to-Date

2011 2010 2011 2010

Company Volume Volume Value Value

SAGICOR FINANCIAL CORPORATION 45,124 56,437 $ 122,252 $171,110

GODDARD ENTERPRISES LIMITED 17,734 11,855 $ 106,186 $ 73,714

CABLE & WIRELESS (BARBADOS) LIMITED 14,800 16,623 $ 79,762 $ 95,883

NEAL & MASSY HOLDINGS LIMITED 10,458 8,701 $ 141,901 $127,114

INSURANCE CORPORATION OF BARBADOS LIMITED 9,591 9,472 $ 28,863 $ 28,760

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Table 9 - Top Five Traded Companies by Value: Year-to-Date

2011 2010 2011 2010

Company Value Value Volume Volume

NEAL & MASSY HOLDINGS LIMITED $ 141,901 $127,114 10,458 8,701

SAGICOR FINANCIAL CORPORATION $ 122,252 $171,110 45,124 56,437

GODDARD ENTERPRISES LIMITED $ 106,186 $ 73,714 17,734 11,855

LIGHT AND POWER HOLDINGS LIMITED $ 101,644 $107,994 3,967 9,331

CABLE & WIRELESS (BARBADOS) LIMITED $ 79,762 $ 95,883 14,800 16,623

For the third quarter of 2011 Sagicor Financial Corporation repeated its second quarter 2011 performance and remained the volume leader for the period July to September 2011. They accounted for 45% of the volume traded but only 18% of the value traded. They were followed by Goddard Enterprises Limited and Cable and Wireless (Barbados) Limited. Light and Power Holdings Limited's increased share price of $25.70, up from the pre-takeover price of $12.00, allowed them to become the value leader trading $94,525 in shares despite only trading 3,678 shares or 8% of the volume traded for the quarter. Table 10 and Table 11 show the top five traded companies in terms of volume and value for the Odd-Lot Market over the third quarter.

Table 10 - Top Five Traded Companies by Volume: 3rd Quarter

2011 2010 2011 2010

Company Volume Volume Value Value

SAGICOR FINANCIAL CORPORATION 21,626 18,330 $ 51,269 $ 52,935

GODDARD ENTERPRISES LIMITED 6,786 - $ 40,386 $ -

CABLE & WIRELESS (BARBADOS) LIMITED 3,686 7,573 $ 19,785 $ 43,348

LIGHT AND POWER HOLDINGS LIMITED 3,678 2,594 $ 94,525 $ 30,189

CAVE SHEPHERD & COMPANY LIMITED 2,906 100 $ 13,368 $ 500

Table 11 - Top Five Traded Companies by Value: 3rd Quarter

2011 2010 2011 2010

Company Value Value Volume Volume

LIGHT AND POWER HOLDINGS LIMITED $ 94,525 $ 30,189 3,678 2,594

SAGICOR FINANCIAL CORPORATION $ 51,269 $ 52,935 21,626 18,330

GODDARD ENTERPRISES LIMITED $ 40,386 $ - 6,786 -

NEAL & MASSY HOLDINGS LIMITED $ 35,751 $ 3,227 2,572 217

CABLE & WIRELESS (BARBADOS) LIMITED $ 19,785 $ 43,348 3,686 7,573

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Index and Market Capitalization Movement

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

three, nine and twelve month periods. For the third quarter, as illustrated in Table 12, all three indices

declined from their positions at June 30th; the Cross-Listed Index recording the largest decline of 1.11%.

When the comparison is extended to six months (Table 13), however, all the indices recorded increases

in excess of 8%. Over the twelve month period shown in Table 14, only the Cross-Listed Index

experienced a decline of -6.62%.

The market capitalization comparisons, illustrated in Table 15 - 17, had similar mixed results; the Cross-

Listed Market Capitalization recorded declines in both the 3 month (1.02%) and 12 month (10.12%)

comparisons. The former were the result of Neal and Massy Holdings Limited's share price trading down

from $14.10 to $13.90 at the close of the quarter. The latter was the result of decreases in the share

prices of all Cross-Listed securities during the last quarter of 2010. The best results were seen over the

nine month comparison period. The Local, Cross-Listed and Composite Market Capitalizations recorded

increases of 6.89%, 7.58% and 6.93% respectively for the year to date.

Table 12 - Index Comparison 3rd

Quarter

Index 30-Sep-11 30-Jun-11 % Change

Local 3,304.58 3,333.34 -0.86%

Cross Listed 1,168.29 1,181.39 -1.11%

Composite 733.32 740.38 -0.95%

Table 13 - Index Comparison Nine Months

Index 30-Sep-11 31-Dec-10 % Change

Local 3,304.58 3,035.53 8.86%

Cross Listed 1,168.29 1,079.79 8.20%

Composite 733.32 675.15 8.62%

Table 14 - Index Comparison Year-on-Year

Index 30-Sep-11 30-Sep-10 % Change

Local 3,304.58 3,042.04 8.63%

Cross Listed 1,168.29 1,251.07 -6.62%

Composite 733.32 715.55 2.48%

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Table 15 - Market Capitalization Comparison 3rd

Quarter

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

Local 9,333,117,524.57 9,134,276,417.73 2.18%

Cross Listed 1,933,337,803.55 1,953,269,158.75 -1.02%

Composite 11,274,405,328.12 11,095,495,576 1.61%

Table 16 - Market Capitalization Comparison Nine Months

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

Local 9,333,117,525 8,731,191,373 6.89%

Cross Listed 1,933,337,804 1,797,129,101 7.58%

Composite 11,274,405,328 10,543,413,165 6.93%

Table 17 -Market Capitalization Comparison Year-on-Year

Market Capitalization 30-Sep-11 30-Sep-10 % Change

Local 9,333,117,524.57 8,799,778,871.02 6.06%

Cross Listed 1,933,337,803.55 2,151,100,780.40 -10.12%

Composite 11,274,405,328.12 10,965,606,342 2.82%

Figure 2 - Index Movement 9 months

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Pe

rce

nta

ge C

han

ge

Index Movement 2011

Local Index

Cross-Listed index

Composite index

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Page 9 of 13

Company Activity Comparative Report

For the first nine months of the year, ending September 30th 2011, seven (7) securities advanced, twelve

(12) declined, three (3) remained unchanged with one new listing trading, four (4) did not trade and one

(1) delisted security3. This is compared to eight (8) securities advanced, ten (10) declined, three (3)

remained unchanged and four (4) did not trade with one suspension; there was one delisted security4.

Light and Power Holdings Limited continued to be the top advancer for the first nine months climbing

114.17% after the takeover transaction which saw its share price rise from $12.00 to $25.70. BICO

Limited and Neal and Massy Holdings Limited rounded out the top three companies to increase in price

during the first nine months of 2011 increasing 26.53% and 11.2% respectively. The four other

companies to increase in price were Royal Fidelity TIGRS A Fund, FirstCaribbean International Bank, Cave

Shepherd and Company Limited and Goddard Enterprises Limited.

Three companies experienced declines in excess of 10% for the first nine months of 2011. Barbados

Farms Limited suffered the largest decline as their share price fell by 39.76% at the close of the period.

ANSA McAL (Barbados) Limited and Almond Resorts Incorporated were the other companies to

experience double digit declines.

Table 18 - Year-to-date Trading Activity by Company (Regular and Junior market only)

YTD 2011

YTD 2011

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Sep 30 2011

June 31 2010

Ansa Mcal (Barbados) Limited 2,619,845 $30,783,179 11.75 14.80 -20.61%

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

BICO Industries Ltd. 17,090 $ 27,975 1.86 1.47 26.53%

Barbados Dairy Industries Ltd. 0 $ - 5.29 5.29 0.00%

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

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

Banks Holdings Ltd. 172,342 $ 673,453 3.81 4.00 -4.75%

Barbados Shipping & Trading Co. Ltd. 0 $ - 7.58 7.58 0.00%

Fortress Caribbean Property Fund 205,712 $ 233,486 1.05 1.14 -7.89%

Cave Shepherd and Co. Ltd. 159,628 $ 728,107 4.60 4.48 2.68%

Cable and Wireless Barbados Ltd 498,756 $ 2,689,963 5.35 5.40 -0.93%

FirstCaribbean International Bank 590,039 $ 1,828,208 3.13 3.00 4.33%

Goddard Enterprises Ltd. 262,748 $ 1,578,607 6.00 5.90 1.69%

Insurance Corporation Of Barbados Ltd. 179,921 $ 542,614 3.00 3.05 -1.64%

Jamaica Money Market Brokers Limited 63,695 $ 6,370 0.10 0.10 0.00%

Light and Power Holdings Ltd. 7,190,812 $184,803,868 25.70 12.00 114.17%

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

3 Sagicor Financial Corporation 6.5% Pref was listed on the board of the BSE on July 19

th, 2011.

4 Sunbeach Communications Incorporated was delisted from the board of the BSE on January 11

th, 2011.

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YTD 2011

YTD 2011

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Sep 30 2011

June 31 2010

Neal And Massey Holdings Ltd. 185,721 $ 2,558,619 13.90 12.50 11.20%

One Caribbean Media Limited 258,411 $ 798,781 3.05 3.10 -1.61%

Sagicor Financial Corporation 6.5% Pref 2,000,000 $ 4,000,000 2.00 - N/A

Sagicor Financial Corporation 955,029 $ 2,521,417 2.70 2.90 -6.90%

Trinidad Cement Ltd. 3,500 $ 3,300 0.80 0.80 0.00%

West India Biscuit Co. Ltd. 12,176 $ 122,273 10.00 10.01 -0.10%

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

Royal Fidelity TIGRS A Fund 5,000 $ 53,750 10.75 10.00 7.50%

Royal Fidelity TIGRS A1 Fund 0 $ - 10.00 10.00 0.00%

For the third quarter, three (3) securities advanced, seven (7) declined, six (6) remained unchanged with

one new listing trading and ten (10) did not trade. This is compared to seven (7) securities advanced,

eleven (11) declined, one (1) remained unchanged and seven (7) did not trade with one suspension in

the corresponding period in 2010.

Table 19 - 3rd

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

3rd Quarter

2011

3rd Quarter

2011

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Sep 30 2011

June 30 2011

Ansa Mcal (Barbados) Limited 0 $ - 11.75 11.75 0.00%

Almond Resorts Inc. 9,100 $ 9,738 1.25 1.00 25.00%

Bico Industries Ltd. 6,500 $ 12,090 1.86 1.50 24.00%

Barbados Dairy Industries Ltd. 0 $ - 5.29 5.29 0.00%

Barbados Farms Ltd. 48,862 $ 86,788 1.50 2.20 -31.82%

Barbados National Bank Inc. 0 $ - 5.50 5.50 0.00%

Banks Holdings Ltd. 41,955 $ 160,488 3.81 3.85 -1.04%

Barbados Shipping & Trading Co. Ltd. 0 $ - 7.58 7.58 0.00%

Fortress Caribbean Property Fund 27,393 $ 29,578 1.05 1.13 -7.08%

Cave Shepherd and Co. Ltd. 22,345 $ 102,787 4.60 4.60 0.00%

Cable and Wireless Barbados Ltd 71,035 $ 381,440 5.35 5.40 -0.93%

FirstCaribbean International Bank 106,333 $ 332,808 3.13 3.13 0.00%

Goddard Enterprises Ltd. 47,567 $ 284,594 6.00 6.00 0.00%

Insurance Corporation Of Barbados Ltd. 52,364 $ 157,222 3.00 2.95 1.69%

Jamaica Money Market Brokers Limited 0 $ - 0.10 0.10 0.00%

Light and Power Holdings Ltd. 15,696 $ 403,387 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. 63,935 $ 889,387 13.90 14.10 -1.42%

One Caribbean Media Limited 0 $ - 3.05 3.05 0.00%

Sagicor Financial Corporation 6.5% Pref 2,000,000 $ 4,000,000 2.00 - N/A

Sagicor Financial Corporation 620,473 $ 1,512,908 2.70 2.91 -7.22%

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3rd Quarter

2011

3rd Quarter

2011

CLOSING PRICE

CLOSING PRICE

% Change

SECURITY Volume Value Sep 30 2011

June 30 2011

Trinidad Cement Ltd. 0 $ - 0.80 0.80 0.00%

West India Biscuit Co. Ltd. 0 $ - 10.00 10.00 0.00%

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

Royal Fidelity TIGRS A Fund 1,800 $ 19,350 10.75 10.75 0.00%

Royal Fidelity TIGRS A1 Fund 0 $ - 10.00 10.00 0.00%

3,134,558 $ 8,371,215 - -

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Conclusion

Table 20 - Regional Index Comparative Analysis

Performance Three

Month Nine

Month Twelve Month

Barbados Stock Exchange Composite Index -0.95% 8.62% 2.48%

Jamaica Stock Exchange Market Index 3.55% 8.34% 9.71%

Trinidad and Tobago Composite Index 4.13% 18.99% 20.40%

The third quarter of 2011 has been encouraging for the Barbados Stock Exchange. One new security was

listed on the board of the Exchange and traded a volume (3,192,963) and value ($8,712,824.43) were up

138% and 26% respectively over the second quarter volume (1,340,272) and value ($6,936,617.89). The

BSE three month Composite Index declined by 0.95%, while the nine and twelve month Indices recorded

increases of 8.62% and 2.48% respectively. It should be noted, however, that at the close of the third

quarter of 2010 the BSE Composite Index experienced declines of 4.53% for the three month, 8.98% for

the nine month and 13.97% for the 12 month. These results, while not indicative of any sustainable long

term growth in the local capital market, are evidence that there has been some improvement in market

conditions and perhaps some increase in the level of shareholder confidence in the local market. Our

regional counterparts are also seeing improvements as both the Jamaica Stock Exchange (JSE) and the

Trinidad and Tobago Stock Exchange (TTSE) have recorded index growth over the three, nine and twelve

month periods. The most notable increases were experienced by the TTSE's Composite Index which

recorded an 18.99% increase over the nine month period and a 20.40% increase over the twelve month.

At the BSE we are hoping that this level of performance continues through the fourth quarter of 2011

and into 2012.

In his recent Financial Statement and Budgetary Proposal 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

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

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Page 13 of 13

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".

The initiatives outlined in Minister Sinckler's proposal are very much welcomed by the BSE as we strive

to 'build a better market'. They will assist the BSE in providing investors with more investing

opportunities while allowing them to diversify their investment portfolios as well as provide greater

efficiency in the market. As Barbados' economy, like many others across the globe, continues to come to

terms with the effects of the global recession we at the BSE are pleased to see the Government of

Barbados putting its support behind the capital markets of this country. It is important that all

stakeholders collectively recognize that the development of the capital market in Barbados is not the

responsibility of any one person, interest group or organization; it is the responsibility of us all.

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