2nd quarter equity review
For the first half of 2012, the market has provided investors with a mere 0.94 per cent increase year to date compared with a 13.7 per cent increase for the same period last year. At the start of the year Bourse's outlook was that the market would remain flat to negative.
We continue to operate in an economy characterised by low interest rates and an investors' quest for attractive investments in a market dearth of options. The pursuit of high dividend yielding stocks remain one of the prime drivers behind the muted but nevertheless evident increase in prices in the Trinidad and Tobago Composite Index (TTCI) and more obvious increase in the All T&T Index. The TTCI reported a small increase of 0.94 per cent while the All T&T Index increased by 4.95 per cent.
T&T EQUITY REVIEW
With 30 listed stocks on the TTCI, 13 advanced, 12 declined and 6 remained unchanged. In terms of the magnitude of these trades we saw that volumes traded decreased 40.8 per cent to 27m shares and values declined by 27.9 per cent to $335.1m from a year ago. The values traded have been declining consistently since half year 2008.
The largest volume leader was Capital and Credit Financial Group Limited (CCFG) accounting for 16.3 per cent of traded volume with 4.3m shares. CCFG was followed by One Caribbean Media (OCM) 9.8 per cent, Guardian Holdings Limited (GHL), 9.3 per cent, Trinidad Cement Limited with 7.6 per cent and Prestige Holdings Limited (PHL) 6.1 per cent.
As it relates to the value of transactions, Republic Bank Limited (RBL) led the board with $82.5m in value traded, followed by Neal and Massy Limited (NML) with $36.5m, GHL $36m, OCM $31.7m and Scotiabank Trinidad and Tobago Limited (SBTT) with $30.8m traded.
SBTT led the top advancers for the HY 2012, the stock advanced 21.2 per cent YTD closing the half year at $61.01. SBTT was followed by OCM with 19.6 per cent, Unilever Caribbean Limited (UCL) gaining 17.58 per cent, GHL at 17.2 per cent and PHL 15 per cent. Nine of the top ten advancing stocks for the quarter were Trinidad and Tobago Companies with the other one being Jamaican Company GraceKennedy Limited (GKC) at sixth place with 14.9 per cent.
Of the top ten stocks declining, Trinidad Companies made up five, Jamaica three and Barbados two. The biggest loser was National Commercial Bank of Jamaica (NCBJ) with a decline of 25.9 per cent, followed by soon to be delisted Supreme Ventures Limited (SVL) with 22.22 per cent, TCL with 16.2 per cent, LJ Williams B (LJWB) 14.9 per cent and National Enterprises Limited with 14.3 per cent.
On May 28, 2012 Barbados Shipping and Trading Company Limited was delisted from the Trinidad and Tobago Stock exchange. The stock represented 1.96 per cent of the Market Capitalisation of the Trinidad and Tobago Composite Index (TTCI). This brought the number of listed shares on the TTCI down to 30.
On June 20, 2012, SVL was officially suspended from trading pursuant to the application made by the Exchange to delist SVL and will be delisted today. This Jamaican Company represented 0.39 per cent of the TTCI's Market Capitalisation.
Another very significant event that has recently occurred was the acquisition of CCFG by Jamaican Money Market Brokers Limited (JMMB). JMMB noted on Tuesday June 26, 2012 that it had gotten 93.14 per cent acceptance of its J$4.55 cash and share offer for CCFG. It needed at least 90 per cent to compulsorily acquire the rest of the shares and thus received enough subscriptions to force the remaining shareholders to sell. JMMB intends to list the shares that were issued to CCFG shareholders as part of its offer.
The expected delisting of SVL and CCFG will result in the number of listed stocks being 28.
No additional information has been provided since the passing of legislation earlier this year with regard to the incentive of a reduced corporate tax rate to Companies qualifying to list on the Junior Stock Exchange to be established by the Trinidad and Tobago Stock Exchange (TTSE).
REGIONAL EQUITY REVIEW
Jamaica Equity Review
For the half year 2012, the main index in Jamaica, the JSE Main, fell 8.3 per cent while the All Jamaican Composite comprised solely of Jamaican Stocks fell 12.26 per cent. In USD terms both indices fell 10.31 per cent and 14.18 per cent respectively.
Barbados Equity Market
The Barbados equity market was fairly flat. The BSE Composite Index was up 0.05 per cent while the BSE Local Index was down 2.05 per cent. There were no significant trades that influenced market movements.
CLICO Bond Update
In keeping with our update on transactions related to the Government of Trinidad and Tobago zero coupon bonds issued to CLICO policyholders, we are pleased to provide the following synopsis.