Saturday, February 24, 2018

Local market outshines peers

During the year 2012 the local equity market's performance continued to outpace its peers with the Trinidad & Tobago Composite Index (TTCI) and All Trinidad & Tobago Index gaining momentum, increasing 5.07 per cent and 15.38 per cent respectively (Table 1). The market peaked on October 31 as the TTCI reached 1,084.48 with a return of 7.23 per cent. This price appreciation coupled with the attractive dividend yields in the prevailing low interest rate environment has indeed been beneficial to investors.

T&T Equity Review

Trading Activity

For the year 2012, the volume of shares crossing the floor was approximately 49.6m, which is far below the 564.1m shares traded in the comparative period last year. The volumes for the year 2011 would have included a block of 449.7m JMMB shares traded in August. Total value also declined 27 per cent to $750.2m (Exhibit 1).

Volume Leaders

Taking the top spot of the top five volume leaders was National Commercial Bank of Jamaica (NCBJ) accounting for 12 per cent of traded volume with 6.1m shares. One Caribbean Media (OCM) followed, registering a volume of 4.7m or 10 per cent of the total volume traded. OCM was trailed by Guardian Holdings Limited (GHL) with a volume of 4.6m or 9 per cent. Capital and Credit Financial Group Limited (CCFG) came in after GHL registering a volume of 4.3m or 8 per cent. The last spot of the top five volume leaders was Trinidad Cement Limited (TCL) with a volume of 3.9m.

Value Leaders

As it relates to the value of transactions, Republic Bank Limited (RBL) led the board with $180.8m in value traded, followed by Scotiabank Trinidad and Tobago Limited (SBTT) with $95.3m. GHL took the third place with $75.1m and Neal and Massy and Ansa McAl trailed with $72m and $70.9m respectively.

Stocks Advancing

Advances outpaced declines for the period. Of the 28 ordinary shares listed on the first tier there were 14 advances, 13 declines and 1 unchanged.

Unilever Caribbean Limited (UCL) led the top advancers for the period, with a 44.9 per cent return Year to Date (YTD). UCL was followed by West Indian Tobacco Limited (WCO) gaining 38.5 per cent, OCM at 37.7 per cent, Prestige Holdings Limited (PHL) 33.1 per cent, and SBTT at 29.8 per cent. Favorite Foods Limited (FFL) took tenth place with a price of $8.35 (Table 2). All ten of the stocks advancing were Trinidad and Tobago companies with four stemming from the Manufacturing sector.

Stocks Declining

Of the top ten stocks declining, 6 were Trinidad companies, 3 were Jamaican and 1 from Barbados. The biggest loser was Jamaica Money Market Brokers (JMMB) which fell by 39.29 per cent whilst NCBJ trailed at 33.33 per cent. Tenth place went to Guardian Media Limited which fell by 11.86 per cent (Table 3).

Major Developments

On July 2, 2012 Supreme Ventures Limited was delisted from the Trinidad and Tobago Stock Exchange. The stock represented 0.39 per cent of the Market Capitalization of the Trinidad and Tobago Composite Index (TTCI).

In September 2012, the TTSE was demutualised. This demutualisation refers to the change in legal status of an exchange from a mutual association with one vote per member into a for-profit limited liability company with one vote per share. The TTSE expects that in the medium term it would be in a position to offer shares to the public and to be listed on the exchange.

On December 24, 2012 Capital and Credit Group Financial Limited was delisted from the Trinidad and Tobago Stock Exchange. The stock represented 0.32 per cent of the Market Capitalization of the Trinidad and Tobago Composite Index (TTCI).

Regional Markets

Jamaican Equity Market

In the Jamaican market, the country's benchmark, the JSE Market Index which comprises all ordinary companies on the Jamaica Stock Exchange ended the period down 3.9 per cent. The Jamaica Composite Index, which comprises only Jamaican companies, was down 11.6 per cent. In USD equivalents both indices fell 10.54 per cent and 17.74 per cent respectively.

The best performer in the Jamaican market was GHL which advanced 67.9 per cent. Lascelles de Mercado and Company Limited followed GHL increasing 33.3 per cent whilst Palace Amusement Company Limited faltered behind with a 20 per cent increase YTD. On the other hand, the worst performer remains Caribbean Cement Company Limited (CCC) declining 65.4 per cent at a price of J$1. CCC was followed by Pulse Investments down 59.18 per cent and Hardware and Lumber down 42.37 per cent.

Barbados Equity Market

The Barbados equity market was fairly flat as the BSE Composite Index was up 1.10 per cent while the BSE Local Index was down 5.6 per cent. YTD One Caribbean Media prices surged 61.02 per cent, Jamaican Money Market Brokers Limited went up 50 per cent and the First Caribbean International Bank came in third place increasing 5.2 per cent. Almonds Resorts Inc suffered the largest decline dropping 60 per cent, Barbados Dairy Industries Limited at 43.29 per cent whilst Barbados Farms Limited fell 33.33 per cent.