$200 M drop

Trading activity on Barbados’ lone securities market has slumped by more than $200 million. The Barbados Stock Exchange reported today that in the first half of this year trading activity “continued to be characterised by decreases in both the total trading volume and total trading value” compared to last year.

Information contained in the BSE’s half year report revealed total trading volume decreased by 70 per cent while total trading value declined by 92 per cent. “The trading activity on the Regular Market for the first

half of 2012 recorded decreases in both trading volume and value of 70.28 per cent and 91.93 per cent respectively. The total volume of shares traded at the half year was 3,660,142 as compared to the 12,316,659 shares traded for the corresponding period in 2011,” the report stated.

“Similarly, the total value traded decreased from $225,678,597 in the first half of 2011 to $18,201,636 for the corresponding period in 2012. As mentioned earlier, the inclusion of the extra-ordinary transactions are the main determinant of the large differences in trading activity. “Excluding these transactions, Regular Market activity would have yielded an increase in volume traded of 15 per cent but a reduction in the value traded of 12 per cent. The number of trades recorded during the first half of 2012 rose from 475 in 2011 to 487 in 2012; an increase of 2.53 per cent,” it added. The BSE also pointed out that minus the extraordinary transactions which occurred in both the first half of 2012 and 2011, total trading volume would have increased by 10 per cent while total trading value would have fallen by 14 per cent. “These figures are in line with general market conditions as share prices have fallen thus giving persons an excellent opportunity to purchase stock in lucrative companies at discounted prices. Falling share prices have also given these persons the opportunity to purchase more stock with the same level of investment thus resulting in an increase in the trading volumes,” it stated.

The BSE also pointed out, however, that second quarter 2012 market performance “showed some improvements even when taking into account two extra-ordinary transactions which occurred during the second quarter of 2011”.

“Total trading volume was up three per cent while total trading value was down 35 per cent. The Odd-Lot Market was the only market recording any significant increases in performance as trading volume in this Market increased by 59 per cent with a corresponding value increase of 30 per cent,” it added.

The BSE said Sagicor Financial Corporation was the top traded company for the first half of 2012 in terms of volume, accounting for 29.68 per cent of the total volume traded but was second in terms of value traded accounting for 13.53 per cent of the value traded. ANSA McAL (Barbados) Limited, which accounted for 49.09 per cent of the total value traded, was the top traded company in terms of value. Sagicor was also “the top security traded for the second quarter in terms of both volume and value”. (SC)

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