TTHHEE JJAAMMAAIICCAA SSTTOOCCKK MARKET REVIEW

A Publication of the Jamaica Stock Exchange March 2012 The Power of the Jamaica Stock Exchange JJuunniioorr MMaarrkkeett they appear to overlook the benefits that could be achieved by utilizing the Jamaica Stock Exchange (JSE) and the Jamaica Stock Exchange Junior Market (the Junior Market) as mechanisms which are already in place and currently contributing to economic growth.

Among its proposals, the PSWG is advocating that new listings on the Junior Market should not be entitled to the 50% income tax relief during years six to ten after listing, but would continue to benefit from the full relief from corporate income tax for the first Caribbean Producers Jamaica Limited listed on the JSE Junior Market on five years after listing. The Junior Wednesday, July 20, 2011. Front Row (L-R): Marlene Street Forrest, Tom Tyler and Market was established in 2009 Mark Heart. Back Row (L-R): Gary Peart, Wentworth Graham and Hugh Logan. with a view to encouraging smaller amaica's entrepreneurial spirit therefore refreshing that the companies to list. It has been a is not dead. In fact, Jamaica's Government of Jamaica has remarkable success because it Jprivate sector has survived and published its Green Paper on Tax Continued on page 3 helped Jamaica to face and Reform and has given the public respond to economic challenges at time to respond. Table of Contents different times during the course The Power of the of the last two decades. These The Private Sector Working Group (PSWG) on Tax Reform, in Jamaica Stock Exchange obstacles have been confronted Junior Market ...... 1 consultation with key public sector and overcome despite the late DIGICEL - Jamaica as a Viable development of a coordinated representatives, submitted a Place for Business ...... 6 national policy aimed at achieving response to the Government's Best Practices long-term growth. Undoubtedly, Green Paper which presents some Awards ...... 11 private enterprise will play an unconventional suggestions. JSE & MICO Sign Landmark increasingly important role in These recommendations may be e-Campus MOU ...... 20 Stock Market helping Jamaica to unlock its true effective in helping Jamaica to Review for 2011 ...... 22 potential going forward. It is achieve sustainable growth but Index to Advertisers PAGE PAGE PAGE

First Global Financial Services 2 E-Learning 12 RJR Group 21 Lascelles de Mercado 5 Ideal Portfolio 14 Ernst & Young 27 Barita 5 Supreme Ventures 18 Stewart Auto Sales 28 Jamaica Broilers 10 JSE Junior Market 19 2 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 The Power of the Jamaica Stock Exchange Junior Market Continued from page 1 allows companies to access equity capital, ease cash flow constraints and become more visible to clients and investors. Removing the tax break for years six to ten could reverse the progress made in attracting companies to the Junior Market. General Accident Insurance Company Ltd listed on the JSE Junior Market on September 30, 2011. From L-R: Mrs. Marlene Street Forrest- General Manger, JSE (Applauding), Mr. Gary Peart; CEO, Mayberry Investments Ltd.; Mr. Nicholas To emphasize the Junior Market's Scott – Director – General Accident; Mr. Paul Scott – Chairman, General Accident success, twelve companies have Insurance Company (Ja.) Ltd; and a very proud Mrs. Sharon Donaldson – listed in just under three years. This Managing Director, General Accident. compares to the listings of ordinary excess of J$150 million, Jamaican is the recommendation to shares of 37 companies on the Teas which has invested in excess of introduce a withholding tax of 10% Main Market of the JSE, a number J$50 million in factory operations on dividends to both Jamaican tax that has not changed significantly and supermarkets, and Honey Bun resident and non-resident over the last four decades. which has invested in new shareholders. Jamaican investors Although it could be argued that equipment that will increase in companies listed on the JSE have the proposed reduction in the efficiency capacity and access to benefitted from the complete corporate income tax rate to 15% export markets. The success of removal of taxes on dividends since would be less than the rate granted these companies will entice more April 2002 and as a result, more to companies in the second phase companies to list and this should investors have entered the market. of tax relief under the current result in additional investments, corporate income tax rate, the employment, revenue and growth Jamaican investors have the option evidence above implies that the for Jamaica in the long-term. of investing locally or overseas. The incentives have motivated removal of the taxes on dividends entrepreneurs to list their It is important for officials to for non-listed companies took companies on the Junior Market, develop and adhere to clear long- effect in June 2009 and it could be an activity which should be term visions when formulating posited that this would have encouraged. policies in order to create an improved Jamaica's attractiveness environment of stability that as an investment destination. The For instance, when companies list encourages investment and allows document produced by the PSWG on the Junior Market they are able investors and entrepreneurs to r e v e a l s t h a t t h e r e a r e to raise funds without having to plan effectively. Changing the approximately 62,477 registered provide collateral or incur policy relating to the Junior Market companies in Jamaica of which just expensive interest payments. Each less than three years since its over 6,000 filed Corporate Income of the companies that has listed on inception would signal an Tax Returns. The problem of the Junior Market has utilised the environment of uncertainty for compliance is virtually non- capital raised to fund expansion. investors and entrepreneurs, some existent when dealing with listed E x a m p l e s i n c l u d e L a s c o of whom already have plans to list companies which are required to M a n u fa c t u r i n g w h i c h h a s on the Junior Market. file their financial statements commenced expansion projected quarterly with the JSE. The timely to be in excess of J$2 billion, Another area of the PSWG submission of quarterly financials Dolphin Cove which invested in proposal that warrants discussion Continued on page 4

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 3 The Power of the tax. This scheme would encourage consider that some of these gains investors to create complex local would have been spent in the local Jamaica Stock and offshore structures in order to economy. reduce their income tax liabilities Exchange Junior and would support those who have The structure of the Junior Market, the wherewithal to obtain expert which provides listed companies Market legal advice and form and maintain with 0% tax on income for the first Continued from page 3 multiple companies. This does not five years and 50% of regular and annual audited financials to seem to be in line with the PSWG's income tax for years six to ten t h e p u b l i c r e d u c e s t h e goal of reducing the scope for tax along with tax-free dividends administrative burden for the evasion. should be maintained because it authorities and it allows the encourages entrepreneurship government to collect its revenues While it may be argued that the which is the engine of growth. The on time. JSE companies should not imposition of the dividend goal should be to bring more of the be penalised because they are withholding tax will encourage country's 62,477 companies and among the few that comply with companies to reinvest profits, it other businesses in to the formal the laws. may actually result in companies economy through the JSE and the accumulating cash and building up Junior Market. Reintroducing double-taxation on retained earnings in order to avoid dividends will also serve to put paying the tax. Dividends drive It has to be stressed that the Junior retired senior citizens at a economic activity and will be used Market provides transparency and disadvantage. Retirees who made to provide further economic accountability which make it easier wise decisions and invested for the growth and revenue for the for the authorities to monitor long-term will suffer from the government. If individuals choose compliance and collect revenue in imposition of the 10% dividend not to spend their dividends and a timely and accurate manner. withholding tax as they will invest the proceeds in interest- F u r t h e r m o r e , t h e J S E ' s suddenly be faced with 10% less bearing accounts, then the mechanisms also enable the income from dividends and find it government would still receive general public to participate in the increasingly difficult to support taxes on these funds. growth of these companies, themselves. hopefully resulting in wealth Furthermore, in order to fulfil the creation for investors as well as What is particularly disturbing target of growth, the Jamaica Stock companies. The wealth created about the proposal to introduce a Exchange, and the Junior Market in will be ploughed back into the 10% dividend withholding tax is particular, should be allowed to economy through consumption that Jamaican shareholders of remain as an alternative to taxes, property taxes and payroll companies will be placed at a relatively expensive debt financing taxes. disadvantage to other CARICOM w h i c h h a s p r o v e n t o b e nationals who invest in Jamaica. burdensome in the Jamaican Jamaica deserves prosperity. A Many other countries in the context due to uncertainty long-term strategic, organised, Caribbean enjoy a 0% tax on surrounding interest rate stability. harmonised approach to tax policy dividend and the existence of the Companies that raise equity implementation could provide CARICOM Double Taxation Treaty financing and invest it wisely will Jamaica with the opportunity to may mean that other CARICOM grow and employ more individuals unlock its true potential. The residents enjoy protection from who will spend more money in the potential has been waiting to be taxes that Jamaicans would not be economy. Growth at the micro- unharnessed for a prolonged entitled to. level will translate into growth at period and the PSWG has the macro-level. Equally important presented a solid foundation of Moreover, the proposal requests is the fact that the Junior Market strategic objectives which should that dividends paid by one has attracted over 7,000 new be developed further to ensure Jamaican resident company to investors since its inception. The that real growth is encouraged. another Jamaican tax resident Junior Market grew by 97% in submitted by: company be exempt from income 2011, and it is not unreasonable to Mr. Justin Nam; Managing Director of Exponential Holdings”

4 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 5 Editor's Note: many persons speak of the difficulty in doing business in Jamaica, yet time and time again overseas-based companies have come to Jamaica, established a strong presence and done exceptionally well. Digicel is one such company and the CEO of Digicel Jamaica Mark Linehan, spoke about why Jamaica is a choice location for doing business at the JSE 7th Regional Investments and Capital Markets conference 2012. We are delighted to share his presentation with our readers. Jamaica as a Viable Place for Business ccess to funds through and connectivity to the rest of the efficient and transparent world. And the telecoms markets is the lifeblood of landscape is set to explode once sAtimulating entrepreneurship and again with the launch of Digicel's investment in any economy. The 4G Mobile only weeks away. Based JSE provides Jamaican companies on HSPA+ technology, 4G Mobile with a crucial forum to raise capital from Digicel is the next step in high and provides the local investment speed mobile internet with speeds community with attractive of up to 7 times faster than the investment opportunities that standard legacy 3G technologies. support local businesses, rather than funds being invested Jamaica enjoys a stable business overseas. climate, with an outward-oriented Mr. Mark Lineham, CEO-Digicel and progressive regulatory The JSE’s Conference brings Jamaica takes questions from the environment across all sectors. together all those interested in not audience during the Digicel only the further expansion of the sponsored session at the JSE’s 7th Jamaica also boasts solid Regional Conference January 24-26, democratic political institutions, exchange but also those interested 2012. in business opportunities in with democratically elected Jamaica. Government officials every 5 years. Why? Congratulations to the People's Speaking on the theme of Jamaica National Party on their recent win With its proximity to the United “as a viable place to do business”, in the general election. Early signs States, Jamaica is ideally located representing Digicel, one of the from the new administration are for trading with the rest of the largest investors in Jamaica in positive, which leads me nicely world. recent years, I can say without onto Jamaica's economy. doubt that Jamaica is not just Jamaica possesses an English- The economy has stabilized over viable, but is an extremely s p e a k i n g , d e d i c a t e d a n d attractive place for both domestic the last 18 months and the outlook productive workforce with highly is good. We saw GDP grow, albeit companies to thrive and for skilled and well-educated international companies to invest. small, in 2011 and Jamaica is also individuals. forecast to show growth in 2012. I have been asked to speak on the There exists a modern and Key areas of the economy like theme of Jamaica “as a viable place sophisticated infrastructure, with 3 tourism and bauxite production to do business”. Representing international airports, a major both showed growth in 2011, and if Digicel, one of the largest investors shipping port and an extensive the US economy avoids slipping in Jamaica in recent years, I can say highway and road network. back into a double-dip recession, without doubt that Jamaica is not then this bodes well for Jamaica just viable, but is an extremely There exists an excellent telecoms and the wider Caribbean economy. attractive place for both domestic infrastructure, with service companies to thrive and for providers offering 3G, 4G The success of the Jamaica Debt international companies to invest. Broadband, international roaming, exchange in 2010 has helped Continued on page 7

6 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 Jamaica as a Viable Place for Business overarching sectors to drive Continued from page 6 economic growth, this is also good news for Jamaica as there is a clear correlation between progress on d e v e l o p i n g t e c h n o l o g y i nf ra st r u c t u re a n d st ro n g economic growth.

In fact, a recent study by consulting firm McKinsey estimates that just one action bringing mobile broadband levels in emerging markets up to those of more mature markets could add between 300 and 420 billion US Dollars to the world's GDP and 10 to 14 million direct and indirect jobs in areas such as equipment manufacturing and outsourcing service. And with the upcoming launch of 4G mobile with 80% Honey Bun (1982) Limited listed on JSE Junior Market on Friday, June 3, 2011. population coverage at launch, Front Row (L-R): Gary Peart, Marlene Street Forrest and Michelle Chong. Back mobile broadband is set to Row (L-R): Daniel Chong and Dustin Chong, at the back Herbert Chong. increase, which will in itself drive further economic growth in relieve some of the pressure of the Jamaica. country's debt burden, and gives There is no policy of high the government breathing space to interest rates and there We can also be reassured by the make the reforms necessary to will be no policy of high Government's confirmation that improve competitiveness and tax reform is of paramount bring the country's finance's under interest rates. importance to fiscal sustainability, control. economic growth and improved stated at yesterday's PSOJ social services. The proposed tax The JDX also brought a welcome breakfast (and again this morning), reforms include the broadening of end to the sliding Jamaican Dollar. "There is no policy of high interest the tax net and the revamping of The new administration's clear rates and there will be no policy of the incentives regime as a tool to commitment to sound economic high interest rates." This bodes stimulate growth. management is to be welcomed well for enhanced economic and should stabilise any potential activity. I touched on Jamaica's proximity to for a weakening in Jamaica's the US, its educated workforce, the foreign exchange position. The government is very committed infrastructure and the regulatory to s u p p o r t i n g i nve st m e nt environment earlier, but I'd like to It was also good to hear that the opportunities in manufacturing, touch on some key socio economic new Government is not only logistics, ICT, shipping, tourism, factors that will help attract further planning to continue economic entertainment, sports, energy and investment in Jamaica. stability but is also focused on agriculture, and I know JAMPRO is driving growth in the economy. In very focused on driving and We have seen major strides in the recent statements, Finance and supporting these types of area of crime with statistics for Planning Minister, the Honourable investments in Jamaica this year. 2011 showing a significant Dr Peter Phillips, assured reduction in most major crimes businesses that the Government And with energy and Information and close to 50% in some areas. will not be pursuing a policy of high and Communication Technology (ICT) being singled out as interest rates. As the Minister Continued on page 8

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 7 Jamaica as a community. You'll note that Digicel invest to ensure economic growth has provided Business Centres for for Jamaica. For example, Digicel is Viable Place both lounges. investing a further US$30million in our 4G mobile network rollout on Jamaica also has one of the newest top of our US$1billion investment for Business and most efficient road and Continued from page 7 in Jamaica to date. In addition, our highway networks in the Caribbean US$60 million investment in our Jamaica also boasts 2 of the largest region, which facilitates safe, new group headquarters in universities in the Caribbean, speedy and cost-effective ground downtown Kingston is testament University of the West Indies and transportation. to the climate that currently exists the University of Technology. In for investment in Jamaica. addition, Jamaica is also home to While I have only touched on a few, Universities from the United in essence, the socio economic This leads me nicely into speaking States, University of New Orleans indicators and the current of Digicel's investment experience and Florida State University all of infrastructure, including the in Jamaica, which is probably one which have significantly boosted vibrant telecoms sector, all bode of the best case studies of the last the profile of the Jamaican well for future growth and eleven years. As you know, Digicel workforce. Digicel is a great investment in Jamaica. launched in April 2001. In almost example of the talent that exists in 11 years, we have consistently Jamaica with over 1,000 Jamaican invested in our business here and employees (many of whom are Digicel is investing a today are proud to serve over two graduates of these universities) further US$30million in million customers. During that serving our 2 million customers our 4G mobile network period, mobile phone penetration 24/7. has gone from as low as 10% in a rollout on top of our population of 2.8million to 114% The well-managed and secure US$1billion investment in today. shipping port in Kingston has the Jamaica to date. world's 7th largest natural harbour Born and bred in Jamaica in 2001, and the 2nd largest in the Western Digicel has expanded rapidly and is Hemisphere. The world class port With the climate primed for foreign now present in 31 markets across facilities include 130 hectares; direct investment, it is critical that the Caribbean, Central America capacity for 2.8 million TEUs current investors continue to and the Pacific. And everywhere (twenty-foot equivalent units); 19 Gantry cranes; 50 straddle carriers and 500,000 square feet in warehouse space. And with the Port Authority of Jamaica preparing for an expected increase in business from the Panama Canal, the future is very bright for the Port in Kingston.

We have two international airports at each end of the island, both of which are continually improved to remain abreast of the industry trends and international security s t a n d a r d s a n d p ro t o c o l s , specifically with the addition of two new VIP lounges in both AMG Packaging & Paper Co. Ltd listed on the JSE Junior Market on Tuesday, July Kingston and Montego Bay 12, 2011. (L-R): Mark Croskery, Andrea Kinach and Michael Chin. servicing the needs of the business Continued on page 9

8 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 Jamaica as a investment of over US$13 million overseas investors, ensuring to date, in 206 projects in the areas Jamaica is competitively placed Viable Place of education, sports, community relative to other islands in the and environment is testament to Caribbean as companies decide for Business this. where to locate their new venture. Continued from page 8 Looking ahead, you may ask, where It's important to say that the we go, our Jamaican colleagues are is Jamaica headed? Jamaican Government is always a key part of our success - taking very encouraging and supportive the Digicel DNA to countries and Jamaica is poised for growth in of foreign direct investment. We customers across the globe. sectors such as manufacturing, have always had and continue to technology/ICT, agriculture and have a great relationship with the During this period, jobs have been tourism through areas such as: Government of Jamaica. created both directly and indirectly for thousands of Jamaicans some Alternative and renewable energy In closing, Jamaica has a rich of whom have become change with the new policies aiming to culture and heritage and people leaders across the Caribbean in reduce dependence on fossil fuel identify with Jamaica the world other Digicel operations thanks to through incentives such as the over. Brand Jamaica has never Jamaica's highly skilled and establishment of Energy Plants for been stronger. Jamaica is Digicel's professional workforce. Liquefied Natural Gas, Waste, Wind home and we are proud to call it so. and Solar. For potential investors it is worth As an investor, we continue to noting - before Jamaica, there was support the Government of T h e D o w n t o w n K i n g s t o n no Digicel. The Jamaican people Jamaica and Jamaican businesses. Redevelopment which has been have embraced Digicel and In fact, Digicel is one of the largest designated a Resort City to include supported us tremendously in tax payers on the island while over a Cruise Ship Pier; a casino; Hotels; everything we do and for that we 70% of procurement orders we Retail and Commercial properties, are very grateful. make in Jamaica are with local and mixed income housing. suppliers. The changes we have seen in The Caymanas economic free zone Jamaica are positive and with GDP Digicel has continued to raise the which boasts 1,500 acres of prime set to continue increasing, the standards when it comes to real estate is well placed to support outlook for Jamaica is bright which telecommunications. We have ICT. is in contrast to many countries invested heavily in our people and across the globe. in our network to ensure we And 4. The International Financial deliver the best value, best service Services Centre. A recent study by My advice to investors who are and best network to all our Baker & McKenzie indicates that looking at Jamaica as an customers. Our technological Jamaica is well suited to be a niche investment option is to go for it advancements in ICT (particularly player in International Financial because the experience is a our Cloud services) and in 4G S e r v i c e s i n t h e a r e a s o f fantastic one, the people are great b r o a d b a n d h a v e a l l o w e d International Holding Companies; and the opportunities are companies to drive efficiencies International Trust Services considerable. Jamaica has huge into their businesses while cutting ( i n c l u d i n g P r i v a t e Tr u s t potential and is a great place to do costs. The upcoming launch of 4G C o m p a n i e s ) ; C o r p o r a t e business. mobile will drive even further Management Services and efficiencies into businesses across Professional Management Support For us, it has been and continues Jamaica. Services to other jurisdictions. to be a fantastic experience.

In addition, as we invest in our In addition the government has Jamaica is ready for business. business we also invest in the introduced a range of targeted tax Come join us. communities in which we work and reliefs and incentives that will play t h e D i g i c e l F o u n d a t i o n ' s an important role in attracting

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 9 10 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 t And Tr ien an ic sp ff a r E e Best Practices Awards: , r n i t a S F t o A c A Must Attend Event k

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ith a capacity crowd in attendance at the Jamaica WStock Exchange's 7th Best Practices Awards, which was held at the Jamaica Pegasus Hotel on Wednesday, December 7, 2011, the night belonged to PanCaribbean Financial Services which copped The General Manager of the Jamaica Stock Exchange, Mrs. Marlene Street five of the eleven awards which Forrest and Mr. Franklin Forrest greeted His Excellency, Governor General , the Most Honourable Patrick Allen upon his arrival. JSE Chairman, Mr. Donovan would be conferred that evening. Perkins (hidden) and his wife were also present to welcome His Excellency.

The event was fully supported by the customer focused approach of The Guest Speaker for the 7th Best C o r p o r a t e J a m a i c a . T h i s those who are considered for the Practices Awards was Mr. Joseph prestigious gathering included the Best Practices Investor Relations M. Matalon, President of the Governor General of Jamaica, His and Disclosure Award. Let us Private Sector Organization (PSOJ). Excellency, the Most Honourable applaud the work and worth of the He gave the audience a sneak peek Patrick Allen- the patron of the employees who stand behind the into research done by a Canadian event, The Most Honourable best practices, implemented by International Development Edward Seaga and Mrs. Seaga and tonight's winners.” Agency-sponsored study in 2007 by the Honourable Marigold Harding, WROC, which revealed that while Custos Roteleoum of St. Andrew. It was then the turn of the Jamaican women have made The night got underway with Mrs. Chairman of the Stock Exchange, significant strides in educational Street Forrest, General Manager of Mr. Donovan Perkins was next to and professional development, the Jamaica Stock Exchange address the audience. Mr. Perkins their participation on Boards had welcoming the guests. Mrs. Street was quite excited about the only moved by 2 %. It was notably Forrest lauded the efforts of the performance of the Junior Market. worse on private sector boards various companies' employees, He informed the audience that over the 10 year period, 1998- who she saw as the main drivers of since the inception of the Junior 2007, than the data for public these companies. According to her Market in April of 2009, the Junior sector boards where women's “employees who do more than Market companies have raised participation moved by 4% over the turn up to work, but who are on over $1.9 billion and Market same period. According to Mr. time, hard-working, productive Capitalization on the Junior Market Matalon “these, as far as I am and accurate in executing their is a whopping $23.8 billion. He concerned, are shocking statistics”. duties ought to be praised. The went on to share with the audience creativity of these individuals goes that the market has been quite He went on to state that, into the Websites and the Annual active, with average daily volume “proponents of the argument for Reports. Let's laud the strategies for 2011 being 1.3 million units and gender diversity on boards and employed by the team behind the the average daily value and at indeed on quotas as a means of

Best Performing Company; and some $5.1 million per day. Continued on page 13

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 11 12 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 t And Tr ien an ic sp ff a Investor Relations category, with the top award in Corporate E r , e r n i t 1st Runner up being JMMB Disclosure and Investor Relations; a S F t o A Securities Ltd and with 2nd Runner Grace Kennedy was the 1st Runner c

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The rest of the evening was left to the Chairman of the Best Practices Committee, Professor Neville Ying to announce the winners and bring the evening to climax. It was PanCaribbean's night to shine as they took away two awards in the newly created category of the Member Dealers Awards. They were winners in the Revenue Generation & Market Activity, while 1st Runner up was NCB Capital Markets and 2nd Runner up His Excellency the Most Hon. Sir Patrick Allen and Mrs. Marlene Street Forrest, General Manager, JSE in dialogue with members of the business community was Mayberry Investments. They attending the JSE's Seventh Best Practices Award Ceremony held on December 7, were also the winner in the 2011. Continued on page 15

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 13 14 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 Former Prime t And Tr ien an Minister, The Most ic sp ff a E r Hon Edward Seaga , e r n i t a and his wife Carla S F t o Seaga chat with Mr. A c

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ALL SMILES - His Excellency the Most Hon Sir Patrick Allen From left to Right: Introduction - The Most Hon. Edward greets Mr. and Mrs. Alvaro Casserly at the JSE's 7th Best Seaga, Mrs. Carla Seaga, Mr. Donovan Perkins and his wife Practices Award Ceremony. Mrs. Perkins. In the background is Mr. Christopher Bovell, JSE's Best Practices Committee Member.

Member Dealer Awards

A representative of Mayberry accepts the first prize in the Mrs. Tanya Miller of PanCaribbean accepts the winning Member Dealers Awards category of Expansion of Investor & prize for Investor Relations, in the newly created Member Listed Companies Base from the Honourable Marigold Dealers Awards category, from Miss Alicia Hussey, JSE's Best Harding, Custos Rotelorum St. Andrew. Practices Committee Member. Continued on page 16

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 15 Member Dealer Awards Continued from page 15

Mr. Robert Drummond, President of First Global Financial Mr. Merrick Plummer (Left), of PanCaribbean, accepts the Services receives the first place award in the category JSE winning prize in the New Member Dealer Awards category, Member Dealers Award for Best Website on behalf of his Revenue Generation and Market Activity from Garth company from Mrs. Marlene Street Forrest, General Manager Kiddoe, chairman of the Jamaica General Securities JSE. Depository.

Ms. Dennise Williams (left) , Mayberry Investments Ltd, Peter Knibbs, Vice President & Chief Financial Officer and Marketing Manager accepts the JSE's Member Dealers Gene Douglas, Vice President Corporate Trust & Group Overall Winner Award from Mrs. Marlene Street Forrest, Corporate Secretary of PanCaribbean accepts winner’s General Manager, JSE. trophy for Annual Report from former Prime Minister of Jamaica, Edward Seaga.

Ms. Hope Wint, AVP Risk & Compliance of PanCaribbean Financial Services accepts the winning prize in the category Mr. Richard Pandoie, Managing Director of Carreras of Corporate Disclosure & Investor Relations from Mr. Robin receives the winner's award for Best Performing Company Levy, General Manager, JCSD & Deputy General Manager, from Mrs. Marlene Street Forrest, General Manager JSE. JSE. Continued on page 17

16 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 Member Dealer Awards Continued from page 16

Mr. Michael Parker (left), of Guardian Holdings Limited Ms. Yvonne Clark (left), Group Chief Financial Officer, accepts the winning prize for Website (Listed Company) National Commercial Bank Jamaica, accepts the PSOJ's from Mr. Alvaro Casserly, Member of Best Practices Corporate Governance Award from President Joseph M. Committee. Matalon.

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Revenue Generation & Market Activity JSE will recognize Member Dealers that: (i) During the year traded the most value on the Exchange and Team PanCaribbean is presented with the Governor General's Award for (ii) Participated in JSE Programmes Excellence from His Excellency the Most Hon. Sir Patrick Allen, Governor General of Jamaica. 2nd Runner up - Mayberry 1st Runner up - Barita 2nd Runner up - Stocks & 1st Runner up - NCB Capital Investments Ltd Securities Ltd Markets Winner - Mayberry Investments 1st Runner up - JMMB Securities Winner - Pan Caribbean Ltd Ltd Winner - PanCaribbean Expansion of Investors & Listed Investor Relations Companies Base This award recognizes the Website This award recognizes the Member Dealer that; “This award is given to encourage Member Dealer that has; “consistently exceeds customer member dealers to raise the “increased the number of clients expectation, by providing quality and efficiency of the in the JCSD and have listed most excellent customer service dissemination of information to companies within a given year”. provided by stockbrokerages to the investing public via the investors.” website” 2nd Runner up - JMMB Securities Ltd Continued on page 19

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 17 18 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 t And Tr ien an ic sp by listed companies in PSOJ Corporate Governance ff a E r , e r n enhancing shareholder "This award seeks to i t a S F t o value in the areas of recognize companies that A c

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” return on shareholdings.” governance.” “ Best Practices Awards 2010 2nd Runner up - Salada Foods 2nd Runner up - Sagicor Continued from page 17 1st Runner up - First Jamaica 1st Runner up - Scotia Winner - Carreras Investments Ja 2nd Runner up - Capital & Credit Winner - NCB Securities Ltd Website 1st Runner up - Stocks & “This award seeks to And the overall winner will Securities Ltd encourage listed receive the: Winner - First Global companies to raise the Governor General's Award for quality and efficiency of Excellence The Jamaica Stock Exchange's the dissemination of Member Dealers Overall Winner information to the The overall winner for the 2010 is awarded to: investing public via the Best Practices Award was Mayberry Investments Ltd website.” PanCaribbean. 2nd Runner up - Scotia Group Ja Best Practices Awards 2010 1st Runner up - Capital & Credit Financial Group Annual Report Winner - Guardian Holdings Ltd "This award is to encourage public listed companies to produce clearer more reader- friendly annual reports and to provide greater insight into the JSE JUNIOR MARKET companies' financial affairs, governance practices and business activities."

2nd Runner up - Sagicor 1st Runner up JMMB Winner - PanCaribbean

Corporate Disclosure & Investor Relations

2nd Runner up - NCBJ 1st Runner up - Grace Kennedy Winner - PanCaribbean Now Open For Business Best Performing Company Listing: Start Up, Small & Medium Sized Companies “This award seeks to 40 Harbour Street, Kingston. Tel: 967-3271-4 Fax: 924-9090 identify and recognize Email: [email protected] Website: www.jamstockex.com outstanding performance

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 19 JSE and MICO Sign Landmark e-Campus MOU he Jamaica Stock Exchange ( J S E ) a n d T h e M i c o T University College signed h i s t o r i c M e m o r a n d u m o f Understanding (MOU) on Friday, D e c e m b e r 0 9 , 2 0 1 1 . T h e a g r e e m e n t w i l l e n h a n c e professional training for persons in the financial services sector through the Jamaica Stock E x c h a n g e ' s e - L e a r n i n g programme.

Speaking at the press conference held at the JSE during which the signing took place, Mrs. Marlene Memorandum of Understanding: Friday, December 9, 2011 was a significant day Street Forrest, General Manager of for the JSE e-Learning Campus and the Mico University College with the signing JSE explained that, “This MOU is of a Memorandum of Understanding (MOU). The MOU was signed by (l-r): Professor Claude Packer, President of the Mico University College; Mrs. Yvonne different because it will not only Nicholson, Administrator, JSE e-Learning Campus; and Mrs. Marlene Street allow for shared cooperation Forrest, General Manager of the Jamaica Stock Exchange (JSE). Looking on is between Mico and the e-Campus Robin Levy, Deputy General Manager, JSE and General Manager, JCSD who moderated this momentous occasion. but will also strengthen the courses offered by the e-Campus. With the Professor Claude Packer, President P ro g ra m m e A c c red itat io n ; JSE being the oldest and largest of the Mico University College, also Programme Delivery and Access; exchange in the English-speaking shared at the press conference a n d H u m a n R e s o u r c e Caribbean, and Mico being the that, “This will be a reciprocal Development, including the oldest teacher training institution learning experience. The Mico will Professional Development of in the Western Hemisphere, the play quite a developmental role for Faculty, Skills Transfer and the experiences to be shared are the curriculum of the e-Learning Sharing of Other Resources. numerous.” programme. Quality assurance and pedagogical issues will also be The JSE e-Campus, established in Both organizations confirmed the factored in. On the other hand 2010, will proudly see its first importance of the collaboration in there will be a technology transfer cohort graduating this year. The e- order to make use of common for us and leadership issues that Campus utilizes computer resources and technology in both can learn from.” technology and internet-based delivering a remote, technology communications to deliver driven educational solution that The MOU provides that Mico learning material online using on- meets the needs of the industry for University College will collaborate line lectures, tutorials and chat continuing education. The JSE and with the JSE in development of the rooms that are user-friendly and Mico have also both agreed that current e-Campus course of study conducive to remote access, there is a definite need for a for the postgraduate Diploma in flexible learning and group study. coordinated, collaborative and Financial Services Management, to Three certificate-level modules rationalized approach to dealing include the following areas: cover the gamut of critical areas of with these training issues affecting Curriculum Strengthening; learning in the securities and the financial services sector. Programme and Course Design; financial arena.

20 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 21 Jamaica Stock Exchange Group Acquires New Trading and Settlement Platforms

he Jamaica Stock Exchange Hence, the thrust to provide England, which support the Global Group (JSE) in its bid to platforms that will increase trading Vision trading system and the Timprove service delivery and capacity with the ability to Depend settlement system remain current with international implement new products in a short respectively. The new trading and standards, on Monday, December time, are scalable, offer improved settlement systems are currently 5, 2011 rolled out its new Global reporting capabilities, as well as used by Barbados and Trinidad Vision trading and Depend improved member connectivity Stock Exchanges. settlement Platforms. The main and reduced maintenance costs. objective is to deliver platforms These systems were also selected The overall implementation was a that will allow the JSE to perform its primarily due to their multi-asset success and the group is now core business functions in addition trading capacity and their ability to focused on exploring new markets to supporting its new business communicate with other financial and products. strategies for the next five years market systems. and beyond. The new systems were acquired Of paramount importance is the through licensing arrangements need to position the JSE to take with Trayport and Percival, advantage of new market trends. companies out of London,

Stock Market Review for 2011 Economic Overview The Jamaican economy faces the same challenges-high debt, The rate on BOJ treasury bills continued to trend downwards slow growth, high unemployment and the potential threat of throughout 2011. In January, the average yield on the 28-Day, another global slowdown. The outlook for the country will be 90-Day and 180-Day treasury bills were 7.46%, 7.37% and dependent on the negotiations to be held by the new 7.46% respectively. During the month of December the administration with the International Monetary Fund (IMF) average yields were 6.48%, 6.21% and 6.46% on 28-Day, 90- and the ability of the current administration to manouevre Day and 180-Day treasury bills respectively. within the current financial challenges internal to Jamaica and in the face of the global economic slowdown. Since May 2011 Meanwhile, data from the Statistical Institute of Jamaica there have been no official negotiations with the IMF which showed that the Jamaican economy grew by 1.5 %. The Goods suggests that the country has missed some of the targets set Producing Sector grew by 5% and the Service Sector grew by out under the Standby Agreement with the IMF. An 0.4%. This growth was due in part by favorable weather agreement with the IMF will be beneficial for the country as it condition and an increase in consumer demand. relates to improving access to loans from other multilateral institutions. Indices Nevertheless, the country reported positive news in key areas Table 1 during the year 2011.

The Jamaican dollar remained stable throughout the year. After starting the year at J$85.86:US$1.00, the JMD closed the year’s trading at J$86.60:US$1.00, reflecting a depreciation in value of J$0.73. Although, driven in part by weak demand, the rate of inflation for 2011 was 6.0% which is significantly below the 11.70% that was recorded in 2010. The lower Inflation rate was also influenced by favourable weather conditions throughout the year.

Continued on page 23

22 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 Stock Market Review for 2011 The Main JSE Index recorded its largest one day decline of 1.98% (1,713.02 points) on April 6, 2011 to close at 84,791.48 Continued from page 22 points. Similar to the increases reflected in 2010, all the indices in the regular market recorded an advance except the JSE Cross The All Jamaican Composite Index Listed Index (See Table 1) in 2011. The JSE Market Index gained The All Jamaican Composite Index recorded its highest value of 10,076.38 points or 11.82% to close at 95,297.20 points. The 107,673.01 points on November 9, 2011. All Jamaican Composite and the JSE Select indices advanced by The All Jamaican Composite Index recorded its lowest value of 21,385.49 points (26.47%) and 681.82 points (31.10%) to close 79,983.70 points on January 14, 2011. at 102,178.79 points and 2,874.01 points respectively. The All Jamaican Composite Index experienced its largest one month appreciation of 9.32% (7,623.37 points) in April to close Overall, the year 2011 reflected a better performance than at 89,436.73 points. 2010 as indicated by the movement in the main market index The All Jamaican Composite Index experienced its largest one (See Graph 1). This reflects continued recovery in the market month decline of 2.91% (2,883.42 points) in September to from the impact of the global recession within the last three close at 96,124.13 points. years. At the end of the year the market saw a strong positive The All Jamaican Composite Index recorded its highest one- advance to decline ratio of thirty to seven. The market also saw day appreciation of 2.90% (2,995.25 points) to close at noticeable gains from some of the heavily weighted stocks. 106,324.66 points on November 4, 2011. On average, stock prices rose 26.05% during the year 2011. The All Jamaican Composite Index recorded its largest one-day depreciation of 1.89% (1,854.21 points) on September 27, The JSE Cross Listed index declined by 68.46 points or 7.93% to 2011 to close at 96,372.22 points. close at 794.5 points. This was driven by declines in the prices of Guardian Holdings Ltd (down 25.00%) and Trinidad Cement Ltd (down 65.45%). The JSE Select Index The JSE Select Index recorded its highest value of 3,061.11 points on November 8, 2011. Graph 1 The JSE Select Index recorded its lowest value of 2,187.37 points on January 4, 2011. The JSE Select Index experienced its largest one month appreciation of 11.28% (252.55 points) in April 2011 to close at 2,491.03 points. The JSE Select Index experienced its largest one month decline of 2.12% (58.66 points) in September to close at 2,712.98 points. The JSE Select Index recorded its largest one-day appreciation of 3.43% (100.44 points) on November 4, 2011 to close at 3,030.00 points. The JSE Select Index recorded its largest one-day depreciation of 2.27% (51.28 points) on February 2, 2011 to close at 2,208.74 points.

The JSE Cross Listed Index The JSE Cross Listed Index recorded its highest value of 879.59 points on March 18, 2011. The JSE Cross Listed Index recorded its lowest value of 794.55 points on December 30, 2011. Indices statistics for 2011 The JSE Cross Listed Index recorded its largest one-month appreciation of 1.92% (16.58 points) on March 31, 2011. The JSE Index The JSE Cross Listed Index recorded its largest one-month The Main JSE Index recorded its highest value of 98,685.32 depreciation of 5.25% (46.16 points) on April 29, 2011. points on November 9, 2011. The JSE Cross Listed Index recorded its largest one-day The Main JSE Index recorded its lowest value of 84,726.04 appreciation of 1.69% (14.65 points) on March 14, 2011. points on January 14, 2011. The JSE Cross Listed Index recorded its largest one-day The Main JSE Index recorded its largest one month depreciation of 5.73% (50.42 points) on April 6, 2011. appreciation of 3.86% (3,538.89 points) in October 2011 to close at 95,270.73 points. The JSE Junior Market Index The Main JSE Index recorded its largest one month decline of The JSE Junior Market Index recorded its highest value of 1.92% (1,800.00 points) in September 2011 to close at 811.05 points on November 9, 2011. 91,731.84 points. The JSE Junior Market Index recorded its lowest value of The Main JSE Index recorded its largest one day appreciation of 357.09 points on March 7, 2011. 1.88% (1,802.20 points) on November 4, 2011 to close at The JSE Junior Market Index recorded its largest one-month 97,874.04 points. Continued on page 24

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 23 Stock Market Review for 2011 to $619.44 billion at the end of 2011. This compares Continued from page 23 favorably to $564.72 billion at the end of 2010. At the same time, market volume (excluding blocks) in 2011 stood at 1,550,142,176 units compared to appreciation of 21.80% (84.74 points) on May 31, 2011. 2,641,537,836 in 2010. This represents a decline of The JSE Junior Market Index recorded its largest one-month 1,091,395,660 units or 41.32%. On the other hand, depreciation of 11.24% (47.40 points) on February 28, 2011. market value increased to $18.10 billion from the $17.35 The JSE Junior Market Index recorded its largest one-day billion recorded in 2010. This reflects an increase of appreciation of 6.86% (27.15 points) on May 18, 2011. 4.35% or $753.88 million. The number of transactions in The JSE Junior Market Index recorded its largest one-day the year 2011 increased by 4,952 to 23,293. depreciation of 3.45% (16.96 points) on July 4, 2011. There were 26 block trades in the regular market in 2011 compared to 18 during the previous year. The JSE USD Market Index Market volume in the block market in 2011 amounted to The JSE USD Index started on July 5, 2011 at 100 Points. The 269,159,416 units, sharply below the 929,661,478 units USD index tracks the performance of companies whose shares recorded in 2010. trade in United States Dollars. On July 14, 2011 Proven The total value of block trades in 2011 stood at $2.89 billion relative to $3.48 billion in 2010. Investments Limited was listed at US$0.112. The month that experienced the highest number of The JSE USD Index recorded its highest value of 103.57 points transactions was November with 2,827 transactions. on July 28, 2011. Meanwhile, the month that experienced the least The JSE USD Index recorded its lowest value of 78.57 points on transactions was February with 1,438 transactions. November 25, 2011. Similarly, February was the month that saw the smallest The JSE USD Index recorded its largest one-month volume traded, accounting for 61,825,716 units. The appreciation of 3.57% (3.57 points) in July 2011. month that recorded the highest market volume was The JSE USD Index recorded its largest one-month September with 187,831,048 units. depreciation of 9.42% (9.29 points) in September 2011. January was the month that recorded the smallest market The JSE Junior Market Index recorded its largest one-day value of $408.93 million. On the other hand, December appreciation of 12.00% (10.71 points) on July 25, 2011. recorded a market value of $3.94 billion, the highest for the year 2011. The JSE Junior Market Index recorded its largest one-day The main advancers for the year were Jamaica Money depreciation of 11.97% (12.14 points) on July 22, 2011. Market Brokers Limited up 210.00% to close at $12.40, Barita Investments Limited up 136.68% to close at $4.71 The JSE Combined Index and Pegasus Hotels of Jamaica Limited up 87.26% to The JSE Combined Index established on April 1, 2011. The JSE close at $22.49. On the other hand, the main decliners were Trinidad Cement Limited down 65.45% to close at Combined index tracks the movement of shares listed on the $18.31, Cable & Wireless Jamaica Limited down 39.39% Main market and the Junior markrt. to close at $0.20 and Salada Foods Jamaica Limited The JSE Combined Index recorded its highest value of down 31.77% to close at $8.87. 100,757.17 points on November 9, 2011. At the end of the year, the market saw trading in 37 The JSE Combined Index recorded its lowest value of 89,169.68 ordinary shares of which 30 advanced and seven points on April 6, 2011. declined. The JSE Combined Index recorded its largest one-month appreciation of 4.36% (4,051.18 points) in October 2011. The main advancers and decliners for 2011 were: The JSE Combined Index recorded its largest one-month Table 2- Advancers depreciation of 1.74% (1,649.55 points) in September 2011. Close Price % Chan ge The JSE Combined Index recorded its largest one-day Company appreciation of 1.89% (1,848.39 points) on November 4, 2011. Jamaica Money Market Brokers 12.40 210.00% The JSE Combined Index recorded its largest one-day Barita Investments Limited 4.71 136.68 % depreciation of 1.95% (1,696.05 points) on April 6, 2011. Pegasus Hotels of Jamaica 22.49 87.26%

Trading Activity - Regular Market Ciboney Group 0.05 66.67% Berger Paints (Jamaic a) 3.20 59.20% There were 252 trading days in 2011 and 2010. In 2011, Kingston Wharves 5.92 48.00% market volume including block trades amounted to 1,819,301,592 down 49.06% relative to 3,571,199,314 units recorded during the previous year. On the other National Commercial Bank Jamaica 28.06 45.24% hand, market value, including blocks, increased Desnoes & Geddes 5.13 42.90% marginally by 0.79% in 2011 to just over $20.99 billion. Supreme Ventures 3.00 38.25% The number of transactions (including blocks) increased Sagicor Life Jamaica 10.00 38.12% by 27.02% to 23,319. Market Capitalization amounted

Continued on page 25

24 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 Stock Market Review for 2011 Market Developments Continued from page 24 The JSE Combined index started on April 1, 2011 at 86,897.43 points. This index tracks the performance of all the companies Table 3 - Decliners that issue ordinary shares listed on both the Main Market and Company Close % Change Junior Market of the Jamaica Stock Exchange. Price Capital & Credit Merchant Bank Limited redeemed its Variable

Trinidad Cement Limited 18.31 (65.45%) Rate Preference Shares and the shares were subsequently Cable & Wireless (Jam aica) 0 .20 (3 9.39%) delisted on April 14, 2011.

Scotia DBG Investments Limited changed its name to Scotia Salada Foods Jama ica 8.87 (3 1.77%) Investments Jamaica Limited and this was made effective at Guardian Holdings Limi ted 1 65.00 ( 25.00%) the JSE on April 15, 2011. Lascelles, deMercado & C o 292.50 ( 4.10%) Caribbean Cement Company 3.00 (2.28%) In July, the JSE launched the US$ Equities Market which facilitates the trading and settlement of US$ denominated shares. The JSE USD Index started at 100 Points and this index Jamaica Broilers Group 5.92 (1.50%) tracks the performance of companies whose shares trade in United States Dollars. The JSE Junior Market New Listings The JSE Junior Market Index started the year 2011 at 379.92 Jamaica Money Market Brokers’ 8.75% Preference and points and closed the year at 748.86 points. This represents an Jamaica Money Market Brokers 8.5% Preference were listed on improvement of 97.11%. This was driven by the listing of four February 4, 2011. The 8.75% preference share raised $1.2 companies during the year and price appreciation of billion at a price of $3.00 while the 8.50% preference share companies previously listed. The Junior Market started the raised $875.00 million at a price of $3.50. year with eight companies and closed the year with a total of twelve companies. Table 4 shows the companies that were Honey Bun (1982) Limited was listed on June 3, 2011. Honey listed during the year, the amount raised from these listings Bun (1982) Limited raised 50.79 million at a price of $3.00 and the close prices as at December 30, 2011 along with their during its IPO. listing prices: Table 4 AMG Packaging & Paper Company Limited was listed on the JSE Junior Market on July 12, Company Amount Listing Price Close Price % Change 2011. AMG raised 57.8 million at a price of $2.88 Raised Dec 30, 2011 Since listing during its IPO. AMG Packaging & Pap er Limited 57.8 Million $2.88 $4.47 55.21% On July 14, 2011, Proven Honey Bun (1982) Limited 50 .79 Million $3.00 $5.50 83.33 % Investments Limited was listed at US0.112; the first Caribbean Producers Jamaica Ltd 42 8 Million $2.00 $2.80 40.00 % company to list on the JSE General Accident Insurance Co Ltd 416 .63 Million $2 .02 $2.50 23.76 % US$ Equities Market.

Caribbean Producers Jamaica Limited (CPJ) was listed on the Trading activity - Junior Market JSE Junior Market on July 20, 2011. CPJ raised $428 million during its IPO at a price of $2.00. In light of the additional listings and increased activity in the year, market capitalization as at December 30, 2011 rose to General Accident Insurance Company Limited (GENAC) was $23.60 billion. This reflects a sharp increase of $15.13 billion or listed on the JSE Junior Market on September 30, 2011. GENAC 178.68% over the previous year. raised 416.63 million during its initial public offering (IPO) at a Market volume for 2011 amounted to 306,220,533 units, up price of $2.02. significantly from 46,061,871 units recorded in 2010. Market value also increased sharply to $1.25 billion from $192.17 million in the previous year. Similarly, the number of Delistings transactions rose from 1,191 in 2010 to 7,883 in 2011. There PanCaribbean Financial Services Limited (PCFS) redeemed all were 252 days of trading in 2011 and 2010. the outstanding Preference Stock Units on December 30, 2011. The stock will be delisted in early 2012. Continued on page 26

THE JAMAICA STOCK MARKET REVIEW MARCH 2012 25 Stock Market Review for 2011 Hotels of Jamaica Limited. The offer was opened on November 25, 2011 at a price of $22.50 and closed on Continued from page 25 December 15, 2011. First Jamaica Investments Limited was delisted on August 5, 2011. A scheme of arrangement was undertaken where First New Trading Settlement Platforms Jamaica Investments Limited was amalgamated into Pan The Jamaica Stock Exchange Group (JSE) in its bid to improve Jamaican Investment Trust Limited. service delivery and remain current with international standards, on December 5, 2011 rolled out its new Global First Caribbean International Bank Jamaica Limited was Vision trading and Depend settlement Platforms. The main delisted on December 30, 2011 for failure to comply with Rule objective is to deliver trading and settlement platforms that 411A, which requires at least 100 persons to own at least 20 will allow the JSE to perform its core business functions in per cent of the Company's share capital. addition to supporting its new business strategies for the next five years and beyond. The Bank of Nova Scotia Jamaica Limited's Variable Rate Preference Share was redeemed and consequently the stock Listed Companies was delisted on December 30, 2011. As at December 30, 2011, the total number of companies listed on the regular market stood at 40 while the total number Takeover of companies listed on the Junior Market stood at 12. There Quivin International Limited issued a Take-Over Bid Circular to were 37 ordinary shares listed and 16 preferences as at acquire the remaining outstanding shares of the Pegasus December 30, 2011 on the regular market.

Stock Market Puzzle

INVESTMENTS SAVINGS T I L P S S E L L E Y Y D T W BEAR S I L I S T I N G S U B V E Z MARKET G R O I N U J M X B W O E M L BULL STOCK N V F E S Q T I F S K N Q T A APPRECIATE I A C A T T M S V K F U G S S DECLINE V P O S W F N I N V E S T O R INVESTOR SELL A P N Q D X Q E R H O L D V M BUY S R F K E N K S M D F Q X I A

HOLD T E I L C C E R H T B E A R R RESEARCH O C D L L Q H D E A S N R L K CONFIDENCE

BONUS C I E U I T S V I H R E X J E

SHARES K A N B N B E S L V S E V H T SPLIT X T C Q E T M T Q V I F S N D DIVIDENDS Q E E A F D P H I N S D B R I LISTINGS JUNIOR Y G M A I N H C R A E S E R N MAIN

26 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 THE JAMAICA STOCK MARKET REVIEW MARCH 2012 27 28 THE JAMAICA STOCK MARKET REVIEW MARCH 2012