Jan 2006 Financial News

Sale of ICBL shares livens up activity on Barbados Stock Exchange

Jan 04, 2006

THE sale of the 20 million-odd ICBL shares last week will definitely boost the end-of-year trading results of the Barbados Stock Exchange for 2005.

However, whether they will push the overall volume beyond that of 2004 will only be known when the Exchange releases stats on its trading activity for 2005.

Last Wednesday was the final day for trading on the exchange. On that day, the sale of the Barbados government shares in the Insurance Corporation of Barbados to a Bermudan company was effected. That transaction livened up activity on the exchange which for most of 2005 had endured slower trading.

Other stats as outlined by the BSE show that local market capitalisation at the end of last Wednesday's trading was $10.9 billion, while the cross listed was $11.8 billion, and the stock market index closed at 3 927.58 for the local and 2 298.91 for the cross listed.

There was one new company in the Jamaica Money Market Brokers (JMMB), which commenced activity in November on the Barbados market.

In 2004, some 122.2 million shares (inclusive of ordinary and preferred stock and put-thrus) valued at $459.0 million were traded on the BSE. FirstCaribbean Inter- national Bank was the volume leader with 77.5 million shares, followed by Sagicor Financial Corporation Barbados Shipping and Trading and Cave Shepherd.

However, those bullish conditions did not persist in 2005 and up to the end of September 2004, trading was slower.

The other two active markets in the Caribbean, Trinidad and Tobago and Jamaica all registered slow periods at some point during the past year.

For the nine months to September 2005, the BSE's trading results showed 19.9 million shares having crossed the floor of the exchange for an overall value of $113.8 million. The top five companies in terms of trading volume were Goddard Enterprises Limited, Sagicor Financial Corporation, Barbados Farms Limited, Barbados National Bank, and the Barbados Shipping and Trading Company Limited.

"One of the reasons for this decline in activity is the increases in interest rates which have taken place throughout the year," the BSE had said in a statement following the release of the third quarter report.

There were also gains and losses in share prices, according to information compiled by Business Monday. Among those reporting increases in stock prices is Ansa McAl (Barbados) Limited, the automotive and general services firm.

This stock started 2005 at $6.60 and increased to $18.35 by the end of 2005. Cave Shepherd had a stock split. Light and Power's stock price increased also in 2005.

The Barbados Advocate
Wednesday, 4th January, 2006.
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