BSE pressing on despite challenges
Mon, May 07, 2012 - 12:00 AM
Despite significant decline in both trading volume and value in the first quarter of 2012, the Barbados Stock Exchange has reiterated its commitment to developing the local capital market.
According to the BSE’s report on the first three months of the year, overall trading volume fell 78 per cent and trading value, 93 per cent.
Management said the reduction in general trading activity can be attributed to the absence of the large volumes associated with the takeover transactions which occurred during the first quarter of 2011.
“During the first quarter of 2011 AMCL Holdings Limited commenced the purchase of all remaining shares of ANSA McAL Barbados Limited while EMERA (Barbados) Holdings Incorporated also commenced similar action to purchase all outstanding common shares of Light & Power Holdings Limited.
“There were a total of 12 significant transactions recorded in the first quarter of 2011.
“To date there has only been one significant transaction for ANSA McAL (Barbados) Limited,” the exchange said.
More challenges are likely in the second quarter with the delisting of Barbados Dairy Industries Limited and Almond Resorts Inc.
However, the BSE said it will press on with its initiative to further develop the junior market and give small to medium enterprises an additional vehicle to raise capital to improve their operations.
“We will also seek to establish an international securities market here in Barbados.
“We are also focusing our efforts on the establishment of a structured market for the trading of commercial paper and also the possibility of introducing new instruments to our market,” it said.
Jamaica Money Market Brokers Ltd was the top performer for the quarter, climbing 50 per cent from $0.10 to $0.15 per share.
One Caribbean Media Limited and Cave Shepherd & Co. Ltd have the next two largest increases, 8.81 and 8.7 per cent, respectively.
Barbados Farms Limited registered the largest decline of the quarter, with its share price down 20 per cent to $1.20.
Sagicor Financial Corporation, down 19.86 per cent, was the only other company to lose more than ten per cent in the quarter. (NB)
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