Aug 2008 Financial News

Barbados market feels effect of delistings

Aug 21, 2008

THE DELISTING of Courts (Barbados) Limited and RBTT Financial Holdings Limited from the Barbados Stock Exchange (BSE) has affected cross-listed and composite market capitalisation in the first six months of trading for 2008.

BSE general manager Marlon Yarde in his report on the period said most of the market measurements had improved on the prior period but "the notable exception to this trend was in the area of cross-listed and composite market capitalisation".

"This decline is explained by the delisting of Courts (Barbados) Limited and RBTT Financial Holdings Limited from the board of the exchange on June 17, 2008," he said.

Yarde noted that RBTT's delisting had greater effect on the market "because at the time of delisting it had a capitalisation of [$3.86 billion] which represented 47 per cent of the total capitalisation of the cross-listed companies".

Market capitalisation on the cross-listed index dropped by 43.54 per cent, and on the composite index by 14.57 per cent.

He explained that RBTT's delisting came after the merger between that institution and RBC Holdings (Trinidad and Tobago) Limited, and Courts exited after it was acquired by Cobalt Holdings Company Limited.

On a brighter note, capital market capitalisation on the local index improved by 5.22 per cent.

In June the BSE had indicated to BARBADOS BUSINESS AUTHORITY that it was moving to offset the dwindling number of companies on the local market with a new trading platform, the Over The Counter market, which would allow companies to trade their securities without being listed or traded on the official BSE board.

Over the past five years the BSE has been affected by other delistings, such as A. S. Brydens & Sons Ltd and BWIA. Barbados Shipping & Trading and Barbados Farms are expected to be dropped soon as a result of takeovers. (SR)


Source:
Nation News
Monday August 18, 2008

http://www.nationnews.com/story/301473109815548.php