Today we at Bourse take a closer look at the performance of the local equity market for 2013 as its performance outstripped that of its regional counterparts. Internationally, the Trinidad and Tobago Composite Index ranked 52 amongst 95 of the world’s major equity indexes and surpassed the performance of country indices in China, South Korea, Singapore and Taiwan.
The Trinidad and Tobago Composite Index (TTCI) and All Trinidad and Tobago Index experienced significant gains over the year increasing by 10.7 per cent and 17.1 per cent respectively (in US$ equivalent terms). The performance of the local market in particular, relative to the TTCI, emphasised the difficulties faced by several of our Caribbean cross-listed counterparts. The market peaked on December 24 as the TTCI reached 1,185.83 ending the year slightly lower at a level of 1,185.05 which marked a return of 11.3 per cent for 2013. 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
In 2013, the total volume of shares to cross the exchange was approximately 122.4M at a total value of TT$1.6B. Trinidad Cement Limited was the overall volume leader with 28.3M being traded which represented 23 per cent of total market volume but only 2.76 per cent of overall market value. As seen in Exhibit 1, the CIF was a large contributor to overall market activity and accounted for 20 per cent of the total volume of trades to cross the Trinidad and Tobago Stock Exchange and 32.2 per cent of the total value traded at $524.2M.
For the period, a volume of 97.98M ordinary shares crossed the floor. This represents a 93.3 per cent increase in traded volume when compared to the 50.68M shares that traded for the year 2012 (Exhibit 2). The value of ordinary shares traded increased 48 per cent from $746.6M to $1.1B, largely due to 3.38 million Neal and Massy Limited (NML) shares and 2.56 million ANSA McAl (AMCL) shares that crossed floor.
Volume Leaders (Ordinary Shares)
Taking the top spot in volume leaders was TCL, accounting for 28.89 per cent of first tier traded volume with 28.31M shares crossing the board but only 2.76 per cent of overall market value. Jamaica Money Market Brokers (JMMB) followed, registering a volume of 15.93M or 16.26 per cent of the total volume traded. Sagicor Financial Corporation (SFC) and National Commercial Bank Jamaica Limited (NCBJ) followed with approximately 11.18M shares and 5.48M being traded respectively or 11.41 per cent and 5.6 per cent of total volume. Grace Kennedy Limited (GKC) closed off the top five with a volume of 3.76M or 3.83 per cent.
Value Leaders (Trinidad and Tobago Stock Exchange)
Turning to transaction activity by value, CIF led the board with $524M in value traded, followed by Neal and Massy Holdings Limited (NML) with $194.6M. ANSA McAl limited followed with a total value of $169.6M. In approximately 15 weeks of trading, newcomer First Citizens Bank Limited (FIRST) trailed closely behind with $133.1M, surpassing its industry competitor Republic Bank Limited (RBL) which recorded a traded value of $115.3M (Exhibit 3). The top 5 securities by traded value constituted 70 per cent of total value traded.
For the period, ten stocks declined. Of the ten declining stocks, 5 were locally listed with the balance being cross-listed. Cross-listed stocks Scotia Investment Jamaica Limited (SIJL) experienced the most pronounced decline, slipping 34.8 per cent. LJ Williams (LJWB) followed, retreating 27 per cent GHL fell 24.3 per cent whilst Jamaican National Commercial Bank Jamaica Limited (NCBJ) retreated 20.1 per cent. Barbadian CIBC FirstCaribbean International Bank (FCI) shed 13.3 per cent.
Advances outpaced declines for the period. Of the 29 ordinary shares listed on the first tier there were 17 advances, 10 declines and 2 unchanged.
Leading the advances for 2013 was FIRST, which gained 83 per cent since its listing date on September 16, 2013. National Flour Mills Limited (NFM) and TCL followed, advancing 58.3 per cent and 47.7 per cent respectively. West Indian Tobacco Company Ltd (WCO) appreciated 41.2 per cent while Angostura Holdings Limited (AHL) gained 38.7 per cent.
Major Developments for 2013
On July 15, 2013 First Citizens Bank launched the largest Initial Public Offering (IPO) of shares in the history of the Trinidad and Tobago Stock Exchange. At a price of $22.00 per share, 48.5M shares were offered to the public with a market value of approximately $1.1B. The IPO was 3.12 times oversubscribed and was listed on September 16, 2013, trading under the ticker FIRST and experienced the largest rally on the TTCI for the year.
On July 22, 2013, trading in BCB Holdings Limited (BCBTT) was suspended and is yet to be delisted. On October 28, 2013 Fortress Caribbean Property Fund was delisted from the Trinidad and Tobago Stock Exchange and on December 31, Guardian Holdings Limited was delisted from the Jamaican Stock Exchange. Also during December, National Enterprises Limited (NEL) informed the Stock Exchange that the company closed an agreement with BP to purchase its 10 per cent shareholding in Powergen.
In the year ahead…
Dividend-yielding stocks were among the most demanded for 2013, given the low interest rate environment facing investors. Based on a weighted average, the Trinidad and Tobago Composite Index offered a weighted average dividend yield of 3 per cent.
In our next article, we will be looking at the stock picks for the year ahead taking into account the government’s intention to list a partial shareholding of the Phoenix Park Gas Processors Limited (PPGPL). PPGPL will be the first major energy sector listing on the Trinidad and Tobago Stock Exchange and likely to be one of the most eagerly anticipated initial public offerings (IPOs) on our local market.
For more information on these and other investment themes, please contact Bourse Securities Limited, at 628-9100, email us at
Research@boursefinancial.com or visit us at any one of our three offices located in Port-of-Spain, Chaguanas and San Fernando. Investors can also visit our website at www.bourseinvestment.com or Bourse Securities Limited Facebook page.