2013 Year End Report

8th Avenue Belleville, St. Michael BB11114, T: (246) 436-9871/2 | F: (246) 429-8942 | www.bse.com.bb The following report reviews the overall performance of the companies listed on the Barbados for the period January 1, 2013 to December 31, 2013 inclusive. Additionally, in an effort to provide greater detail on the market performance, fourth quarter information has been included. General discussion was also given to the overall economic situation of the country and its impact on the general performance of the market. The report has been structured as follows:

• Overall Performance • Economic Factors • Trading activity by Market • Indices and • Advancers/Decliners for 2013 • Historical Company Trading statistics • Market Events • The Regulatory Roundup • Concluding Remarks 3

Overall Performance

General performance on the Board of the Barbados Stock Exchange Inc. (BSE) for the year 2013 showed comparable performance to that of the wider macro-economic environment.

Trading for the year started well with the completion of transactions pursuant to the take-over of Republic Bank Barbados Limited (RBBL) by Republic Bank Limited. Average monthly trading was steady from that point until a surge in trading activity during the month of December which saw a spike in activity in both the Regular and Put Through Markets. The Put Through Market had the most improved performance in terms of increased activity as trades occurred on this Market every month with the exception of November. The Junior Market, although only recording one single trade, saw increases in performance in both trading volumes and values; there was one Block Trade transaction during the year 2013. There were also improvements in the level of Bond Market activity during 2013.

A comparison of total trading volume and value 2013/2012, inclusive of extraordinary transactions for 2013 mentioned above, as well as those occurring in 2012 - the completion of AMCL Holdings Limited’s takeover of ANSA McAL (Barbados) Limited and the initial trades (Block trades and Regular Market activity) pursuant to Republic Bank Limited’s take-over of Republic Bank Barbados Limited, shows a decline in total trading volume of 43% and an associated decline in total trading value of 60% as illustrated in Table 1 below. However, excluding the extraordinary transactions for both years, total trading volume would have increased by 24% and total trading value would have increased by 42%.

Table 1: Trading Activity Comparison by Market % % Market December December December December Change Change 2013 Volume 2012 Volume 2013 Value 2012 Value Volume Value

Regular 6,448,758 7,974,092 $ 22,474,461 $ 36,529,235 -19% -38% Odd-Lot** - 142,892 $ - $ 602,889 NA NA Put Through 2,959,128 531,269 $ 17,134,360 $ 2,026,359 457% 746% Junior 7,000 2,000 $ 70,000 $ 20,925 250% 235% Block Trade 12,907,292 30,817,908 $ 38,076,511 $ 154,089,540 -58% -75% Total 22,322,178 39,468,161 $ 77,755,333 $ 193,268,948 -43% -60% **Odd-Lot Market discontinued October 8th, 2012

There were three de-listings and two new listings on the board of the BSE. ANSA McAL Barbados Limited, Fortress Caribbean Property Fund Limited and Republic Bank Barbados Limited were the securities exiting the board during 2013. Subsequent to the delisting of Caribbean Property Fund, Fortress Fund Managers Limited listed two new mutual funds - Fortress Caribbean Property Fund - Development Fund and Fortress Caribbean Property Fund - Value Fund1.

Market indices showed mixed results in 2013 when compared to the closing figures for 2012. At year-end, the Local Index was the only measure to record a decrease of 2.82%. The Cross-listed and Composite indices, however, had

1See Market Events 2013 below. 4

risen by 15.31% and 1.42% respectively, above their 2012 year-end figures. These increases were due primarily to the increase in the traded price of Neal and Massy Holdings Limited which, by the close of 2013, had increased 22.78% over its December 31st, 2012 figure. One Caribbean Media Limited’s price also increased but only by 1.05%. The BSE Market Capitalization measures performed similarly, however, the Cross-Listed Market Cap was the only market measure to recorded an increase of 14.92%. It should be noted that the declining Local Market Cap performance was attributed primarily to the de-listing of both ANSA McAL Barbados Limited and Republic Bank Barbados Limited.

Table 2 below illustrates the Trading Statistics Comparison 2012 - 2013. Quarters I and IV were the most active; activity was attributed to the takeover transactions previously mentioned in Q1 and an increase in Put Through and Block Trade Market activity in Q4.

Table 2: Trading Statistics Comparison 2012 - 2013

Number of Number of Number of Number of Market Value Market Value Shares Shares Transactions Transactions Quarter 2013 2012 2013 2012 2013 2012 I 2,839,680 2,464,186 $ 11,800,514 $ 14,619,815 298 452 II 1,740,158 1,380,819 $ 7,939,745 $ 4,517,815 297 418 III 1,078,955 1,908,100 $ 2,846,227 $ 8,276,300 267 302 IV 16,663,385 33,715,056 $ 55,168,847 $ 165,855,017 332 328 Total 22,322,178 39,468,161 $ 77,755,333 $ 193,268,948 1,194 1,500

There was a 20% decrease in the number of trades occurring in 2013 when compared to 2012. There were 1,194 trades in 2013 as compared to 1,500 for 2012. Figure 1: Total Trade Frequency Comparison, illustrates graphically how the trade frequency has varied between 2013 and 2012.

Figure 1: Total Trade Frequency Comparison

200 Total Trade Frequency Comparison 180 160 140 120 100 80

No. of Trades 60 40 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 118 104 76 158 42 97 76 96 95 116 93 123 2012 90 173 189 98 156 164 102 105 95 100 71 157 5

As illustrated in Table 3 below, there was a decrease in both the volume and value traded for the fourth quarter of 2013 when compared to the corresponding period in 2012. The Regular Market recorded a decrease of 34% in terms of volume and 60% in terms of value. The Put Through market recorded a substantial increase in activity as a result of a transaction which saw 1,995,967 shares in Goddard Enterprises Limited trade across the board at $6.25. Total Put Through activity increased by 641% in terms of volume and 1905% in terms of value. One trade occurred on the Junior Market for the year 2013 and there was a Block Trade transaction which saw 12,907,292 shares in Banks Holdings Limited trading at $2.95.

For the 4th quarter, the Local and Composite Index measures recorded declines of 6.18% and 1.18% respectively due to large decreases in the prices of two securities - Barbados Farms Limited and Cave Shepherd & Company Limited. The Cross-Listed Index measure was the only index measure to record an increase of 13.90% in the fourth quarter of 2013. Market capitalization performance for the fourth quarter also mirrored that of the indices as the local and composite market capitalizations fell by 12.96% and 7.85% respectively while the cross-listed index increased by 14.05%.

Table 3: Fourth Quarter Trading Activity Comparison % % Market Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Change Change 2013 Volume 2012 Volume 2013 Value 2012 Value Volume Value Regular 1,742,315 2,624,175 $ 4,491,422 $ 11,134,223 -34% -60% Odd-Lot** - 2,106 $ - $ 6,423 NA NA Put - Through 2,006,778 270,867 $ 12,530,914 $ 624,831 641% 1905% Junior 7,000 - $ 70,000 $ - NA NA Block Trade 12,907,292 30,817,908 $ 38,076,511 $ 154,089,540 -58% -75% Total 16,663,385 33,715,056 $ 55,168,847 $ 165,855,017 -51% -67% **Odd-Lot Market discontinued October 8th, 2012 6

Economic Factors

This segment of the report was compiled from In discussing the recovery of the economy, the CBB the Analysis of Barbados’ Current Economic mentioned that past performance and future recovery Performance dated December 2013 and was hinged on “private investment that improves the quality of Barbados’ internationally traded services, published by the renews our products, and extends our product (CBB). The review states that the economy of offering.” Proof of this fact was seen as foreign reserves Barbados ‘performed appreciably better during for 2013 fell by $301 million with foreign capital inflows the current economic recession’. reaching approximately $499 million; a decline of $188 million. The CBB sited the ‘slump’ in private foreign “Between 2008, when the current crisis hit, and 2013, investments as “the major reason behind the decline in the economy contracted by 3 percent in total. In the foreign exchange reserves in 2013.” As of December 31, 1981 - 82 recession the decline was 7 percent, and in 2013, “foreign reserves were the equivalent of 15 weeks 1990 - 93 it was as much as 14 percent.” of imports of goods and services.”

The CBB noted that Barbados “ranks highest among In discussing fiscal policy, the CBB noted that “the Caribbean countries”, ranking number 47 in the world declines in reserves from May onwards signaled the need in the 2013 - 2014 Global Competitiveness Report. for fiscal contraction measures”. In August 2013, the Barbados outperformed its Caribbean and Latin detailed an eighteen month American neighbors “in terms of its infrastructure, fiscal adjustment package and later on December 13, institutions, health, education, labor market efficiency, an 11 percent cut in public sector jobs was announced financial market development and technological to further ensure the achievement of the fiscal targets. readiness. It is on par with its peers with respect to goods market efficiency, business sophistication and In outlining the growth forecasts and assumptions, the innovation.” Despite also being competitive in terms of CBB expects less than 1 percent growth in 2014 with a Tourism prices and the prices of its other internationally steady increase to 1.6 percent in 2015. Post 2015, growth traded goods and services, the CBB stated that is expected to be between 2 percent and 3 percent. The Barbados still experienced “some decline in its share CBB stated the “economic growth forecast is based of the Caribbean Market” and suggests that initiatives principally on expectations for the tourism sector and to promote investment, increase productivity, improve on major investment projects planned by the private the quality of the product, and to enrich the tourist sector and by Government.” experience, are the focus of the tourism development strategy.”

Barbados’ real GDP contracted marginally by 0.2 percent. There were declines in both the value added by tourism and construction of 1 percent and 12 percent respectively, while non-sugar agricultural output and business and other related services experienced increases of 11 percent and 2 percent respectively. 7 8

Trading Activity by Market

Regular

There was a decline in Regular Market performance for 2013 when compared to its performance in 2012. Decreases of 19% and 38% were registered in both trading volume and value respectively, however, a more realistic picture of the activity can be had when all extraordinary transactions are removed from both years under consideration. In 2013, Republic Bank Limited purchased 1,304,956 shares of Republic Bank Barbados Limited at $5.00 per share and AMCL Holdings Limited purchased 1,850 shares in ANSA McAL Barbados Limited at $11.75 while in 2012, Republic Bank Limited purchased 1,347,489 shares of Republic Bank Barbados Limited at $5.00 per share and AMCL Holdings Limited purchased 761,324 shares in ANSA McAL Barbados Limited at $11.75. The exclusion of these transactions results in the trading volume decreasing by 12% and trading value by 23%.

Table 4: Regular Market Statistical Comparison December 31 December 31 % 2013 2012 Change Total Share Volume 6,448,758 7,974,092 -19.13% Total Share Value 22,474,461 36,529,235 -38.48% Average Daily Share Volume 25,899 31,896 -18.80% Average Daily Share Value $ 90,259 $ 146,117 -38.23% Number of Trades 1,162 943 23.22% Number of Trade Days 249 250 -0.40% Average Share Price $ 5.53 $ 5.23 5.80% Advance/Decline Ratio 8/5 7/11 N/A Local Index 2,995.52 3,082.38 -2.82% Cross – Listed Index 1,486.78 1,289.35 15.31% Composite Market Index 740.42 730.04 1.42% Local Market Capitalization 7,999,308,023 8,957,484,391 -10.70% Cross-Listed Market Capitalization 2,481,309,653 2,159,097,185 14.92% Composite Market Capitalization 10,480,617,676 11,124,381,576 -5.79% Number of Listed Securities 27 28 -3.57%

Table 4 above provides a statistical comparison of Regular Market activity for the reporting period. Improvements were seen in the Number of Trades, Average Share Price, Advance/Decline ratio, and Cross-Listed Index and Market Cap.

Figure 2 illustrates the breakdown of trades which occurred during 2013. There was an increase in the number of trades occurring on the Regular Market as 1,162 trades occurred in 2013 while 943 trades occurred in 2012; an increase of 23.2%. 9

Figure 2: Trade Frequency Comparison (Regular Market)

160 Regular Market Trade Frequency Comparison

140

120

100

80

60 No. of Trades 40

20

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 116 101 72 155 41 94 74 93 94 110 93 119 2012 33 87 132 55 102 78 73 63 53 92 71 104

Table 5 and Table 6 show the top traded companies for the year in terms of volume and value. Sagicor Financial Corporation and Republic Bank Barbados Limited repeated their 2012 performance of being the only two securities to break the 1 million shares traded mark. In terms of value traded, Republic Bank Barbados Limited was the top performer followed by Sagicor Financial Corporation; Neal and Massy Holdings Limited rounded out the top three.

Table 5: Top Five Traded Companies by Volume – 2013

2013 2012 2013 2012 Company Volume Volume Value Value Sagicor Financial Corporation 2,190,513 1,593,145 $ 4,564,223 $ 3,595,268 Republic Bank Barbados Limited 1,304,956 1,371,291 $ 6,524,780 $ 6,852,925 Fortress Caribbean Property Fund 661,911 555,217 $ 463,203 $ 480,629 Goddard Enterprises Limited 363,401 547,795 $ 2,225,152 $ 3,175,533 Insurance Corporation of Barbados Limited 345,241 156,252 $ 891,598 $ 416,065 10

Table 6: Top Five Traded Companies by Value – 2013 2013 2012 2013 2012 Company Value Value Volume Volume Republic Bank Barbados Limited $ 6,524,780 $ 6,852,925 1,304,956 1,371,291 Sagicor Financial Corporation $ 4,564,223 $ 3,595,268 2,190,513 1,593,145 Neal And Massy Holdings Limited $ 2,672,937 $ 1,852,927 159,654 135325 Goddard Enterprises Limited $ 2,225,152 $ 3,175,533 363,401 547,795 Light and Power Holdings Limited $ 1,279,577 $ 1,222,589 49,801 47,593

For the fourth quarter, Sagicor Financial Corporation, Insurance Corporation of Barbados Limited and Banks Holdings Limited were the top three performers in terms of both volume and value traded. Fortress Caribbean Property Fund - Development Fund, which was listed in October 2013, and Cave Shepherd & Company Limited rounded out the top five in terms of volume traded while Neal and Massy Holdings Limited and Goddard Enterprises Limited rounded out the top five in terms of value traded. Table 7 and Table 8 illustrate the top traded companies for the quarter by volume and value.

Table 7: Top Five Traded Companies by Volume – 4th Quarter 2013 2012 2013 2012 Company Volume Volume Value Value Sagicor Financial Corporation 899,326 208,387 $ 1,960,191 $ 461,527 Insurance Corporation of Barbados Limited 253,763 18,308 $ 656,812 $ 47,628 Banks Holdings Limited 172,633 206,536 $ 519,544 $ 619,625 Fortress Caribbean Property Fund - Development Fund 121,087 0 $ 15,820 $ - Cave Shepherd & Company Limited 87,842 1,800 $ 256,997 $ 8,025

Table 8: Top Five Traded Companies by Value – 4th Quarter 2013 2012 2013 2012 Company Value Value Volume Volume Sagicor Financial Corporation $ 1,960,191 $ 461,527 899,326 208,387 Insurance Corporation of Barbados Limited $ 656,812 $ 47,628 253,763 18,308 Banks Holdings Limited $ 519,544 $ 619,625 172,633 206,536 Neal And Massy Holdings Limited $ 496,699 $ 379,420 28,794 27,012 Goddard Enterprises Limited $ 273,952 $ 208,778 44,570 38,625 11

Junior Market

There was one trade recorded for Junior Market securities on the Board of the BSE in 2013. Royal Fidelity TIGRS A3 Fund recorded a total of 7,000 shares traded with a value of $70,000.00.

Block Trade Market

There were no block trades during the first three quarters of 2013. However, during the fourth quarter one (1) block trade transaction occurred. The transaction was approved by the BSE as it was in accordance with item one (1) of the BSE Block Trade Rules which states, “The sale and purchase of a listed security between associates” . Banks Holdings Limited was the sole security trading a total of 12,907,292 shares at $2.95 on October 22, 2013.

Put Through Market

There was a 457% increase in volume and an associated 746% increase in the value traded for the Put-through Market in 2013. Table 9 illustrates the activity which occurred on this market for 2013.

Table 9: Put Through Market activity 2013

Company No. of Trades Volume Value Banks Holdings Limited 2 105,180 $ 305,022 Cable & Wireless (Barbados) Limited 2 422,015 $ 1,993,849 Cave Shepherd & Company Limited 5 96,000 $ 422,600 Goddard Enterprises Limited 5 2,286,771 $ 14,274,394 Insurance Corporation of Barbados Limited 2 6,000 $ 15,600 Light & Power Holdings Limited PFD 5.5% 2 1,590 $ 4,945 One Caribbean Media Limited 10 9,811 $ 53,961 Sagicor Financial Corporation 1 31,761 $ 63,990 Total 29 2,959,128 $ 17,134,360

Fixed Income Market

There were 195 trades recorded on this market with a total volume of 43,370,000 bonds traded; the total face value of the bonds traded for 2013 was $44,056,929.00. In 2012, however, there were 214 trades, a recorded volume of 23,081,000 bonds traded with a corresponding face value of $23,004,161.50. Table 10 below, gives details on each bond traded. 12

Table 10: Fixed Income Market Activity 2013 Security No. of Trades Amount Traded Barbados Government Debenture 4.75% 2016 8 11,000 Barbados Government Debenture 5.25% 2013 4 203,000 Barbados Government Debenture 5.875% 2018 1 1,000 Barbados Government Debenture 6% 2020 2 3,000 Barbados Government Debenture 6.125% 2021 5 6,000 Barbados Government Debenture 6.25% 2019 6 28,000 Barbados Government Debenture 6.5% 2015 1 500,000 Barbados Government Debenture 6.625% 2018 2 550,000 Barbados Government Debenture 6.625% 2020 2 4,000 Barbados Government Debenture 6.75% 2016 1 200,000 Barbados Government Debenture 6.75% 2021 2 3,000 Barbados Government Debenture 6.875% 2023 10 123,000 Barbados Government Debenture 7% 2017 6 7,000 Barbados Government Debenture 7% 2024 27 47,000 Barbados Government Debenture 7.125% 2026 5 5,000 Barbados Government Debenture 7.25% 2026 3 4,000 Barbados Government Debenture 7.25% 2028 1 1,000 Barbados Government Debenture 7.375% 2027 9 17,000 Barbados Government Debenture 7.375% 2029 4 4,000 Barbados Government Debenture 7.50% 2026 2 100,000 Barbados Government Debenture 7.75% 2020 1 1,000 Barbados Government Debenture 7.75% 2025 2 7,000 Barbados Government Debenture 7.75% 2032 3 4,000 Barbados Government Debenture 7.750% 2031 1 5,000 Barbados Government T/Note 4.25% 2013 3 3,000 Barbados Government T/Note 4.375% 2014 2 3,000 Barbados Government T/Note 4.5% 2015 5 10,735,000 Barbados Government T/Note 5.875% 2014 1 40,000 Barbados Government T/Note 5.875% 2015 15 21,374,000 Barbados Government T/Note 6% 2016 19 7,171,000 Barbados Government T/Note 6% 2017 3 1,015,000 Barbados Government T/Note 6% 2018 1 1,000 Barbados Government T/Note 6.125% 2021 1 11,000 Barbados Government T/Note 6.25% 2018 8 21,000 Barbados Government T/Note 6.375% 2019 3 3,000 Barbados Government T/Note 6.5% 2019 2 2,000 Barbados Government T/Note 6.625% 2019 11 29,000 Barbados Government T/Note 7.25% 2014 5 509,000 Barbados Government T/Note 7.5% 2017 1 500,000 Barbados Government T/Note 8% 2014 3 114,000 Barbados Tourism Inc 8.25% 2015 4 5,000 Total 195 43,370,000 13

Index and Market Capitalization Movement

There were increases in both the Cross-Listed (15.31%) and Composite (1.42%) indices for 2013; the Local Index recorded a decrease of 2.82%. The Cross-Listed Market Capitalization recorded an increase of 14.92%. The Local and Composite Market Capitalization performance, however, recorded decreases of 10.70% and 5.79% respectively.

Table 11 illustrates the year on year changes in both index and market capitalization.

Table 11: Index and Market Capitalization - Year on Year

Index 30-Dec-13 30-Dec-12 % Change Local 2,995.52 3,082.38 -2.82% Cross Listed 1,486.78 1,289.35 15.31% Composite 740.42 730.04 1.42% Market Capitalization 30-Dec-13 30-Dec-12 % Change Local 7,999,308,023 8,957,484,391 -10.70% Cross Listed 2,481,309,653 2,159,097,185 14.92% Composite 10,480,617,676 11,124,381,576 -5.79%

For the fourth quarter of 2013, only the Cross-Listed market measures recorded increases. The Local Index and Market Capitalization measures recorded the largest declines of 6.18% and12.96% respectively. These decreases are the result of large declines in share prices of two (2) locally listed securities as well as the delisting of Republic Bank Barbados Limited.

Table 12, below, illustrates the fourth quarter index and market capitalization performance.

Table 12: Index and Market Capitalization - 4th Quarter

Index 30-Dec-13 30-Sept-13 % Change Local 2,995.52 3,192.87 -6.18% Cross Listed 1,486.78 1,305.35 13.90% Composite 740.42 749.24 -1.18% Market Capitalization 30-Dec-13 30-Sept-13 % Change Local 7,999,308,023.01 9,190,555,963.21 -12.96% Cross Listed 2,481,309,652.70 2,175,651,106.10 14.05% Composite 10,480,617,675.71 11,374,007,069 -7.85% 14

Figure 3 below, illustrates index movement over the one year period 2012 – 2013. It clearly displays the sharp increase in cross-listed index performance in the latter half of the year. This was the result of the traded price of Neal and Massy Holdings Limited (NML) increasing from $14.05 at the opening of 2013 to $17.25 at the close of 2013; a difference of three dollars and twenty cents ($3.20).

Figure 3: Index Movement for 2012 – 2013

Year on Year Index Movement

20.00%

15.00%

10.00% Local Index Cross-Listed Index

Composite Index 5.00% Percentage Change

0.00% Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-5.00% Month

16

Advancers/Decliners – 2013

For the year under review, of the twenty-seven (27) securities listed at close, eight (8) advanced, five (5) declined, seven (7) remained unchanged, five (5) did not trade, there were two (2) newly listed securities2; three (3) securities previously listed were de-listed during the course of the year under review (See Table 13)3.

This is compared to seven (7) of the twenty-eight (28) listed securities advanced, eleven (11) declined, three (3) remained unchanged, seven (7) did not trade of which two (2) were newly listed securities4.

Neal and Massy Holdings Limited had the greatest share price appreciation for 2013 climbing 22.78%. Goddard Enterprises Limited and BICO Industries Limited were the only other securities that had a share appreciation greater than 10% with 13.89% and 12.50% respectively. The five remaining securities that experienced share price appreciation were Sagicor Financial Corporation Pref 6.5% (8.65%), One Caribbean Media Limited (1.05%), Banks Holdings Limited (1.00%), Sagicor Financial Corporation (0.45%) and West India Biscuit Company Limited (0.20%).

Four (4) companies experienced declines in excess of 10% in 2013. Barbados Farms Limited suffered the largest decline as their share price fell by 50% at the end of 2013. Cave Shepherd & Company Limited, Almond Resorts Incorporated and Cable and Wireless (Barbados) Limited were the other companies to experience declines in excess of 10% (See Table 13 below).

Table 13: Total Trading Activity by Company (Regular and Junior Market only) Year-end Year-end % Closing Price Closing Price 2013 2013 Change December 31 December 31 Security Volume Value 2013 2012 Ansa Mcal (Barbados) Limited (DL) 1,850 $ 21,738 - 11.75 NA Almond Resorts Inc. 38,675 $ 13,680 0.32 0.50 -36.00% Bico Industries Ltd. 4,158 $ 6,485 1.80 1.60 12.50% Barbados Dairy Industries Ltd. 800 $ 2,400 3.00 3.00 0.00% Barbados Farms Ltd. 140,876 $ 132,975 0.50 1.00 -50.00% Republic Bank Barbados Limited (DL) 1,304,956 $ 6,524,780 - 5.00 NA Banks Holdings Ltd. 246,244 $ 733,970 3.03 3.00 1.00% Barbados Shipping & Trading Co. Ltd. 0 $ - 7.58 7.58 0.00% Fortress Caribbean Property Fund (DL) 661,911 $ 463,203 - 0.80 NA Fortress C'bean Property 121,087 $ 15,820 0.11 - NA Fund - Dev Fund Fortress C'bean Property 61,038 $ 25,187 0.40 - NA Fund - Val Fund Cave Shepherd and Co. Ltd. 134,106 $ 443,952 2.70 4.68 -42.31% Cable and Wireless Barbados Ltd. 132,671 $ 472,612 3.40 5.00 -32.00% FirstCaribbean International Bank 165,136 $ 494,826 2.98 3.05 -2.30% Goddard Enterprises Ltd. 363,401 $ 2,225,152 6.15 5.40 13.89%

2Subsequent to the delisting of Fortress Caribbean Property Fund, Fortress Fund Managers Limited listed two new mutual funds - Fortress Caribbean Property Fund - Development Fund (CPFD) and Fortress Caribbean Property Fund - Value Fund (CPFV). 3In addition to Fortress Caribbean Property Fund, ANSA McAL Barbados Limited and Republic Bank Barbados Limited were delisted from the board of the Exchange. 4The Barbados Stock Exchange (BSE) was pleased to announce that Royal Fidelity (Barbados) Investment Fund Limited listed two of its sub funds on the Junior Market of the Exchange effective September 20th, 2012. The names of the funds are Royal Fidelity TIGRS A2 Fund (750,000 @ $10.00) and Royal Fidelity TIGRS A3 Fund (450,000 @ $10.00). 17

Year-end Year-end % Closing Price Closing Price 2013 2013 Change December 31 December 31 Security Volume Value 2013 2012 Insurance Corporation of 345,241 $ 891,598 2.60 2.60 0.00% Barbados Ltd. Jamaica Money Market 28,340 $ 4,668 0.15 0.15 0.00% Brokers Limited Light and Power Holdings Ltd. 49,801 $ 1,279,577 25.70 25.70 0.00% Light And Power 969 $ 3,014 3.11 3.11 0.00% Holdings Ltd. 5.5% Pref Neal And Massy Holdings Ltd. 159,654 $ 2,672,937 17.25 14.05 22.78% One Caribbean Media Limited 249,353 $ 1,185,467 4.80 4.75 1.05% Sagicor Financial Corporation 21,613 $ 48,845 2.26 2.08 8.65% 6.5% Pref Sagicor Financial Corporation 2,190,513 $ 4,564,223 2.24 2.23 0.45% Trinidad Cement Ltd. 0 $ - 0.80 0.80 0.00% West India Biscuit Co. Ltd. 17,985 $ 180,366 10.03 10.01 0.20% The West Indies Rum Distilleries Ltd. 8,380 $ 66,986 8.00 8.00 0.00% Royal Fidelity TIGRS A Fund (J) 0 $ - 10.50 10.50 0.00% Royal Fidelity TIGRS A1 Fund (J) 0 $ - 10.00 10.00 0.00% Royal Fidelity TIGRS A2 Fund (J) 0 $ - 10.00 10.00 0.00% Royal Fidelity TIGRS A3 Fund (J) 7,000 $ - 10.00 10.00 0.00% Total 6,448,758 $ 2,474,461

*(J) Denotes Junior Market; (DL) Denotes Delisted Security

For the fourth quarter, as illustrated in Table 14 on page 18, three (3) securities advanced, two (2) declined, eleven (11) remained unchanged and nine (9) did not trade; there were two (2) new listings. Two (2) de-listings occurred during the quarter. This is compared to three (3) securities advanced, nine (9) declined, four (4) remained unchanged and twelve (12) did not trade in the last quarter of 2012.

Sagicor Financial Corporation (13.13%), Banks Holdings Limited (2.71%), and West India Biscuit Company Limited (0.10%) were the only companies to register share price appreciation for the quarter. Barbados Farms Limited and Cave Shepherd & Company Limited were the only two companies to record declines of 41.18% and 33.17% respectively. 18

Table 14: Fourth Quarter Trading Activity by Company (Regular and Junior Market only) 4th Quarter 4th Quarter % Closing Price Closing Price 2013 2013 Change December 31 September 30 Security Volume Value 2013 2013 Ansa Mcal (Barbados) Limited (DL) 0 $ - - $ - NA Almond Resorts Inc. 1,570 $ 502 0.32 $ 0.32 0.00% Bico Industries Ltd. 0 $ - 1.80 $ 1.80 0.00% Barbados Dairy Industries Ltd. 300 $ 900 3.00 $ 3.00 0.00% Barbados Farms Ltd. 16,934 $ 10,725 0.50 $ 0.85 -41.18% Republic Bank Barbados Limited (DL) 0 $ - - $ 5.00 NA Banks Holdings Ltd. 172,633 $ 519,544 3.03 $ 2.95 2.71% Barbados Shipping & Trading Co. Ltd. 0 $ - 7.58 $ 7.58 0.00% Fortress Caribbean Property Fund (DL) 0 $ - - $ 0.65 NA Fortress C'bean Property Fund - Dev Fund 121,087 $ 15,820 0 $ 0 NA Fortress C'bean Property Fund - Val Fund 61,038 $ 25,187 0 $ 0 NA Cave Shepherd and Co. Ltd. 87,842 $ 256,997 2.70 $ 4.04 -33.17% Cable and Wireless Barbados Ltd 31,888 $ 99,828 3.40 $ 3.40 0.00% FirstCaribbean International Bank 5,886 $ 13,572 2.98 $ 2.98 0.00% Goddard Enterprises Ltd. 44,570 $ 273,952 6.15 $ 6.15 0.00% Insurance Corporation Of Barbados Ltd. 253,763 $ 656,812 2.60 $ 2.60 0.00% Jamaica Money Market Brokers Limited 0 $ - 0.15 $ 0.15 0.00% Light and Power Holdings Ltd. 29 $ 580 25.70 $ 25.70 0.00% Light And Power Holdings Ltd 5.5% Pref 879 $ 2,734 3.11 $ 3.11 0.00% Neal And Massy Holdings Ltd. 28,794 $ 496,699 17.25 $ 17.25 0.00% One Caribbean Media Limited 165 $ 800 4.80 $ 4.80 0.00% Sagicor Financial Corporation 6.5% Pref 0 $ - 2.26 $ 2.26 0.00% Sagicor Financial Corporation 899,326 $ 1,960,191 2.24 $ 1.98 13.13% Trinidad Cement Ltd. 0 $ - 0.80 $ 0.80 0.00% West India Biscuit Co. Ltd. 15,611 $ 156,578 10.03 $ 10.02 0.10% The West Indies Rum Distilleries Ltd. 0 $ - 8.00 $ 8.00 0.00% Royal Fidelity TIGRS A Fund (J) 0 $ - 10.50 $ 10.50 0.00% Royal Fidelity TIGRS A1 Fund (J) 0 $ - 10.00 $ 10.00 0.00% Royal Fidelity TIGRS A2 Fund (J) 0 $ - 10.00 $ 10.00 0.00% Royal Fidelity TIGRS A3 Fund (J) 7,000 $ 70,000 10.00 $ 10.00 0.00% Total 1,742,315 $ 4,491,422 - $ -

*(J) Denotes Junior Market; (DL) Denotes Delisted Security 19

Historical Company Trading Statistics

As illustrated in Table 15, five (5) securities increased in price while fifteen (15) declined over the last five years.

Table 15: Historical Five Year Price Range Closing Closing Closing Closing Closing Closing % Price Price Price Price Price Price Change Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Security 2013 2012 2011 2010 2009 2008 Almond Resorts Incorporated $ 0.32 $ 0.50 $ 1.25 $ 1.55 $ 1.55 $ 1.90 -83% BICO Limited $ 1.80 $ 1.60 $ 1.86 $ 1.47 $ 1.86 $ 1.86 -3% Barbados Dairy Industries Limited $ 3.00 $ 3.00 $ 5.29 $ 5.29 $ 5.49 $ 5.50 -45% Barbados Farms Limited $ 0.50 $ 1.00 $ 1.50 $ 2.49 $ 2.05 $ 2.50 -80% Banks Holdings Limited $ 3.03 $ 3.00 $ 3.29 $ 4.00 $ 4.00 $ 3.99 -24% Barbados Shipping & Trading $ 7.58 $ 7.58 $ 7.58 $ 7.58 $ 7.60 $ 8.50 -11% Company Ltd. Fortress Caribbean Property $ 0.11 $ NA $ NA $ NA $ NA $ NA NA Fund - Dev Fund Fortress Caribbean Property $ 0.40 $ NA $ NA $ NA $ NA $ NA NA Fund - Value Fund Cave Shepherd and Company Limited $ 2.70 $ 0.68 $ 4.60 $ 4.48 $ 6.20 $ 7.00 -61% Cable and Wireless (Barbados) Limited $ 3.40 $ 5.00 $ 5.34 $ 5.40 $ 5.79 $ 5.60 -39% FirstCaribbean International Bank Limited $ 2.98 $ 3.05 $ 2.90 $ 3.00 $ 2.75 $ 3.32 -10% Goddard Enterprises Limited $ 6.15 $ 5.40 $ 6.00 $ 5.90 $ 6.00 $ 7.09 -13% Insurance Corporation Of Barbados Ltd. $ 2.60 $ 2.60 $ 2.50 $ 3.05 $ 3.01 $ $4.18 -38% Jamaica Money Market Brokers Limited $ 0.15 $ 0.15 $ 0.10 $ 0.10 $ 0.15 $ 0.39 -62% Light and Power Holdings Limited $ 25.70 $ 25.70 $ 25.70 $ 12.00 $ 11.52 $ 11.42 125% Light And Power Holdings Ltd 5.5% Pref $ 3.11 $ $3.11 $ 3.11 $ 3.11 $ 3.10 $ 3.10 0.3% Neal And Massy Holdings Limited $ 17.25 $ 14.05 $ 13.60 $ 12.50 $ 15.49 $ 15.85 9% One Caribbean Media Limited $ 4.80 $ 4.75 $ 2.95 $ $3.10 $ 3.10 $ 4.40 9% Sagicor Financial Corporation 6.5% Pref $ 2.26 $ 2.08 $ 2.00 $ - $ - $ - NA Sagicor Financial Corporation $ 2.24 $ 2.23 $ 2.87 $ 2.90 $ 3.50 $ 3.51 -36% Trinidad Cement Limited $ 0.80 $ 0.80 $ 0.80 $ 0.80 $ 2.49 $ 2.50 -68% West India Biscuit Company Limited $ 10.03 $ 10.01 $ 10.01 $ 10.01 $ $9.14 $ 9.14 10% The West Indies Rum Distilleries Limited $ 8.00 $ 8.00 $ 8.00 $ 8.50 $ 8.50 $ 8.50 -6% Royal Fidelity TIGRS A Fund $ 10.50 $ 10.50 $ 10.75 $ $10.61 $ - $ - NA Royal Fidelity TIGRS A1 Fund $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ - $ - NA Royal Fidelity TIGRS A2 Fund $ 10.00 $ 10.00 $ - $ - $ - $ - NA Royal Fidelity TIGRS A3 Fund $ 10.00 $ 10.00 $ - $ - $ - $ - NA 20 21

Market Events – 2013

On January 4, 2013, the BSE made the following announcement: • The Barbados Stock Exchange Inc. (BSE) has made adjustments to the Composite Market Cap to take into account shares listed for Royal Fidelity TIGRS A2 Fund (750,000 04 @ $10.00) and Royal Fidelity TIGRS A3 Fund (450,000 @ $10.00) which were not JANUARY accounted for due to procedural errors in recording and reporting these transactions. The BSE has adjusted its Indices and Market Capitalization report to reflect the correct issued and outstanding shares in the capital of the two Funds.

On March 26, 2013, the BSE made the following announcement: • The Barbados Stock Exchange (BSE) wishes to advise the general public that, at a Meeting of the Board of Directors dated March 21, 2013, the Corporate 26 Governance Recommendations (“the Recommendations”) and Insider Trading MARCH Guidelines (“the Guidelines”) were approved to be issued as guidance for all Listed Companies, and that the Recommendations are hereby effective. The goals of the Recommendations are to (i) harmonize the practices of listed companies; (ii) improve transparency of their operations; (iii) provide a basis of consistency for information provided to Shareholders; (iv) improve the quality of disclosure; and (v) reinforce appropriate accountabilities. The Recommendations are designed to complement, and supplement as necessary, statutory guidelines. The Recommendations will come into force on January 1, 2014.

On August 7, 2013, the BSE made the following announcement: • Due to a change in the methodology in which de-listings are handled on our 07 index, we were required to restate our index from April 24, 2013 after the delisting AUGUST of ANSA McAL Barbados Limited (MCAL). The new methodology is consistent with international best-practice and with methodologies used in other regional exchanges.

On April 18, 2013, the BSE made the following announcement: • Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the 18 Financial Services Commission (FSC), the shares of ANSA McAL (Barbados) Limited APRIL will be delisted from the Board of the BSE on April 23, 2013.

On April 23, 2013, the BSE made the following announcement: • Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission (FSC), the shares of ANSA McAL (Barbados) Limited 23 were delisted from the Board of the BSE on April 23, 2013. APRIL 22

On October 17, 2013, the BSE made the following announcement: • Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the 17 Financial Services Commission (FSC), the shares of Fortress Caribbean Property Fund OCTOBER Limited were delisted from the Board of the BSE on October 16th, 2013.

On October 17, 2013, the BSE made the following announcement: • The Barbados Stock Exchange (BSE) is pleased to announce that Fortress Fund Managers Limited has listed two funds on the Regular Market of the Exchange 17 effectiveOctober 17, 2013. The names of the funds are Fortress Caribbean Property OCTOBER Fund - Development Fund (55,652,768 @ $0.27) and Fortress Caribbean Property Fund - Value Fund (55,652,768 @ $0.38).

On December 23, 2013, the BSE made the following announcement: • Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Republic Bank (Barbados) Limited 23 (RBBL) will be delisted from the Board of the BSE on December 30, 2013. DECEMBER

On December 30, 2013, the BSE made the following announcement: • Pursuant to the Rules of the Barbados Stock Exchange Inc. (BSE) and the Order of the Financial Services Commission, the shares of Republic Bank (Barbados) Limited 30 (RBBL) were delisted from the Board of the BSE on December 30, 2013. DECEMBER 23

The Regulatory Roundup – 2013

1. Notices to the Market Notice to Listed Companies 2013-1 – BSE Corporate Governance Recommendations and Insider Trading Guidelines disseminated March 22, 2013. This Notice made the Recommendations effective, giving the Listed Companies approximately eight (8) months to adopt the provisions into their respective corporate governance regimes. The Recommendations become enforceable on January 1, 2014.

2. Rules of the BSE The Rules of the Barbados Stock Exchange Inc. were given conditional approval on November 13, 2013. This approval was subject to the amendment of one (1) of the provisions, which was completed on December 2, 2013. These Rules replace the Rules of the Securities Exchange of Barbados dated May 29, 1987, and become effective on January 13, 2014.

3. Consultation with the Market A breakfast meeting was held with market stakeholders to introduce the Draft Rules of the International Securities Market on February 7, 2013. The Draft Rules were disseminated electronically on February 11 to invite comments and suggestions for a 30 day period, prior to them being submitted to the Financial Services Commission for their review and approval.

4. Listings/De-listings • ANSA McAL (Barbados) Ltd. de-listed from the board of the Exchange on April 23, 2013. • Republic Bank (Barbados) Ltd. de-listed from the board of the Exchange on December 30, 2013. • Fortress Caribbean Property Fund restructured into a segregated cell company. As a consequence, the company simultaneously de-listed the shares of Fortress Caribbean Property Fund and listed two (2) new cell companies on the board of the Exchange: Fortress Caribbean Property Development Fund and Fortress Caribbean Property Value Fund.

5. Demutualization of the BSE The BSE took another forward step in its Demutualization goal when it completed a Valuation of the BSE and proposed Allocation of Value, which was considered and approved by Members at the AGM held on July 24, 2013.

6. Stamp Duty Adjudication During the month of April, the BSE assumed responsibility for the assessment of duty chargeable with respect to executed or completed instruments relating to securities in public companies. This function was previously the responsibility of the Financial Services Commission. During the handing over process, the FSC assumed responsibility of advising the market participants, stakeholders and the general public of this change. This was done by way of a Notice inserted in the daily newspapers as well as by formal letters addressed to stakeholders.

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7. Contingency Fund The Trust Deed for the Contingency Fund was made effective April 24, 2013. The completion of this trust deed was mandated by Regulation 67 of the Securities Regulations, 2002 as part of the administration of the Contingency Fund, which was created for the purpose of providing compensation to customers who suffer financial loss as a result of the insolvency, bankruptcy or default of a Member.

8. Visit by representatives of the IMF/World Bank As part of their Financial Sector Assessment Program (FSAP) mission, 4 officials of the IMF/World Bank team met with officials of the BSE on September 19, 2013. Among the topics discussed were the strategic plan of the BSE, I.T. and technical issues, the functions of the BCSD, regulatory issues of the BSE and market surveillance.

9. Major Regulatory Objectives for 2014 • The completion of the Demutualization of the BSE. • Overseeing the full launch of the International Securities Market in Barbados. • Continued updating of the Rules of the BSE in the face of ever-developing capital markets, in addition to keeping up to date with IOSCO standards and the requirements of governing legislation. • To create an environment of strong corporate governance in the capital markets of Barbados with the assistance of the BSE Corporate Governance Recommendations. • To conduct Compliance Reviews on at least two member-brokers. • Developing the website of the BSE as a source of regulatory information for use by investors, brokers, listed companies, and the general public. 25

Conclusion

The Block Trade and Put Through market activity which occurred in the last quarter of 2013 had positive effects on both volumes and values traded, however, these transactions were not sufficient to result in any improvements in overall performance versus the 2012 figures. It must be noted, however, that despite this less than favorable performance, improvements were seen in the Cross-Listed and Composite market measures as the share prices of some securities started to improve.

An examination of the index performance of some exchanges across the globe showed positive results suggesting a return of both market stability and shareholder confidence despite the many challenges still being faced by many of these economies. Table 16 below, illustrates that all of the international exchanges have experienced increases in their index measure. The ’s Nikkei 225 index recorded the largest increase of 56.72%, followed by ’s Nasdaq 100 Index which recorded an increase of 34.99%. In the Region, the Trinidad and Tobago Stock Exchange (TTSE) and the Barbados Stock Exchange Inc. (BSE) recorded increases of 11.27% and 1.42% respectively. The (JSE) and Eastern Caribbean Stock Exchange (ECSE), however, recorded declines of 12.45% and 6.74% respectively.

Table 16: Year on Year Index Comparison Closing Closing % Index Name Region/Exchange Dec 31 2013 Dec 31 2012 Change Nasdaq 100 NASDAQ 3,592.00 2,660.90 34.99% Dow Jones Industrial NASDAQ and New York Stock 16,504.29 13,104.14 25.95% Average Exchange S&P 500 1,848.36 1,426.19 29.60% FTSE 100 6,749.10 5,897.81 14.43% Nikkei 225 Tokyo Stock Exchange 16,291.31 10,395.18 56.72% Stock Exchange of Hang Seng 23,306.39 22,656.92 2.87% Hong Kong BSE Composite Index Barbados Stock Exchange 740.42 730.04 1.42% JSE Market Index Jamaica Stock Exchange 80,633.55 92,101.22 -12.45% Trinidad and Tobago TTSE Composite Index 1,185.05 1,064.98 11.27% Stock Exchange Eastern Caribbean ECSE Index 145.55 156.07 -6.74% Stock Exchange

As we look towards 2014, we are ever cognizant of the many vagaries associated with operating during these harsh economic times. While we wish to see improvements in trading activity, we are working to strengthen our infrastructure to better reposition the BSE when the economy returns to a more prosperous state. In late 2013, the BSE held its first annual conference on Corporate Governance and Accountability which, from all reports by the eighty (80) plus participants who attended, was very well received. The conference was centered around the BSE Corporate Governance Recommendations and Insider Trading Guidelines for Listed Companies which become enforceable on January 1, 2014. The Financial Services Commission (FSC) also approved the new Rules of the Barbados Stock Exchange Inc. which take effect on January 13, 2014. 8th Avenue Belleville, St. Michael BB11114, Barbados T: (246) 436-9871/2 | F: (246) 429-8942 | www.bse.com.bb