Home' Trinidad and Tobago Guardian : January 16th 2014 Contents JANUARY 2014 • WEEK THREE www.guardian.co.tt BUSINESS GUARDIAN
STOCKS | BG13
Part IIIWe recall that the cross-listed
index declined by 6.9 points
during 2013 to close at 56.33.
The major reason for this
contraction was the fall in
prices of the non-Trinidad-
A fortnight ago, we highlighted the price contrac-
tions experienced by both First Caribbean International
Bank Ltd and National Commercial Bank of Jamaica
Ltd. Later in this article we will review the contractions
for two other Jamaican companies.
Non-bank and finance companies
We now turn to the non-banking and finance com-
panies. ANSA Merchant Bank Ltd s share price started
2013 at $37.23 and closed at $38.60. The share price
peaked at $40.00 when 34 shares traded on April 4.
Guardian Holdings Ltd started the year with high
expectations as the share price experienced a quick
run-up from its starting price of $18.50. Not sur-
prisingly, the share price peaked at $19.97 on February
14, when details of the Jamaican debt exchange pro-
gramme were more fully revealed. We recall a similar
price decline was experienced by NCBJ.
For the remainder of 2013 the GHL price continued
on a mostly downhill trajectory. By April 16, it was
quoted at $18.00. By June 18, the price was down to
$16.00. By August 26, the price was down to $15.00
and it touched $14.00 on September 6. From that
base, it staged a modest recovery and was quoted as
high as $15.50 on both September 28 and October
3. This mini-rally quickly ran out of steam and by
December 6 the share price reached $13.50, which
was the low point for last year. This price level coin-
cided with the announcement of a change at the
CEO level, which became effective on January 1, 2014.
The share price closed 2013 at $14.00.
At the start of 2014 the price continues to exhibit
uncertainty; after dipping first to $13.90 then to
$13.75, it closed on January 10 at $13.84.
Jamaica Money Market Brokers Ltd s share price
started at $0.51 and by January 25 it had reached
$0.65. This early rally quickly ended and by March
6 the share was again being traded at $0.51. By April
29 the price was down to $0.44.
For the next few months the share traded within
a very narrow range but by August 2 it dropped to
$0.43, its low point for the year. By early October,
a modest rally had begun and the price peaked at
$0.73 on October 18. Once again, the selling pressure
built and the price began to fall. It closed at $0.51,
unchanged from its starting level.
National Enterprises Ltd s share price opened 2013
at $14.79 and rose almost continuously to reach
$16.00 on July 12. On October 4, the price crossed
the $17.00 mark. Resistance to cross the $18 mark
was evident and the share reached its peak of $17.99
on October 16. Thereafter, a modest decline ensued
and the share closed the year at $17.55.
The December 18, 2013 agreement to acquire a 10
per cent stake in Powergen may become helpful to
the shareholders in the future. As yet, vital information
such as the proposed acquisition price and value of
assets to be purchased has not yet been released.
A new company, NEL Power Holdings Ltd (NPHL)
has been formed to hold this asset and the Unit Trust
Corporation has been invited to acquire ten per cent
of NPHL. We will see how this new entity evolves
It would also be interesting to see how this proposed
acquisition will be financed, either by the Government
being allotted a new block of NEL shares or by NEL
assuming new debt.
The price of Sagicor Financial Corporation started
2013 at $7.04 and ended last year at $7.25. During
this period SFC saw a low price point of $6 on March
22 when 2,542,200 shares changed hands. The highest
price level of $7.30 was attained on September 30,
when a modest 3,000 shares were traded.
During the early part of December the share traded
at prices ranging from $6.99 to $7.05. On December
23, SFC announced that it had received regulatory
approval from the United Kingdom and Cayman
Islands authorities for the sale of Sagicor Europe
Limited Group for £86 million. Immediately following
this news, the share price strengthened to $7.19 before
closing the year at $7.25.
Early in the new year, the price of this share con-
tinues to show some strength and it closed on January
10 at $7.30.
Scotia Investments Jamaica Ltd saw its share price
tumble in 2013 from the starting level of $2.30 to
$1.50 by year s end. By February 7 the SIJL share
price had declined to $2.00 and it continued on this
downward spiral until April 9, when it reached its
low point of $1.40.
The price then appreciated slowly and reached
$2.05 on August 20. Once again, the price began
drifting downward reaching $1.74 on December 17.
On December 19, the price dropped to $1.51 before
closing the year at $1.50.
One common feature of the securities grouped
under the mutual funds sector is that they all trade
at significant discounts to their net asset value (NAV).
The Fortress Caribbean Property Fund Ltd was
delisted and exited the local exchange at $5.00, the
same price at which it started the year. On the local
exchange, this security saw very little trading activity.
In their efforts to address the severe discount on
the shares, the Barbados-based sponsors of the fund
decided to convert the fund into two segregated cell
companies (SCC), a development fund and a value
This conversion was done effective October 17,
2013, with the initial listing of the development fund
at B$0.27 and the value fund at B$0.38. These suc-
cessor units continue to trade on the Barbados Stock
The most active locally based fund was the Clico
Investment Trust. Primarily, this trust comprises of
Republic Bank Ltd shares and a government bond.
The first trade in this fund was executed on January
7, 2013 at $24.90 when 300 units changed hands.
The next day, 30,250 units traded and the price fell
to $22.00. By January 10, the price of these units had
fallen to $20.25. On March 1, 3.3 million units traded
For much of the year these units have traded below
$23.00. Only for a few days in late June and early
July did trades take place close to or at $23.00. This
price represents a discount of at least $3.00 per unit,
which has a net asset value in excess of $26.00. At
year s end the price was quoted at $21.99.
The Praetorian Property Mutual Fund started the
year at $4.60. However, when the first trade for the
year was executed on January 21, the price tumbled
to $4.00. On March 6, the price declined to $3.75.
Then, by March 12, the price fell to $3.40, where it
remained relatively stable for several months.
On November 7, the price reached as high as $3.60,
but closed on December 31 at $3.55. The release of
disappointing results to September 2013 on December
30 saw the price decline to $3.41 on the first trading
day of 2014.
Originally, this fund was scheduled to close in 2014
and distribute the proceeds to its shareholders. The
fund reported a 2013 loss of $14.5 million, which was
largely attributed to the difficulties being experienced
in other Caribbean territories, in particular, The Cay-
man Islands, Barbados and St Lucia.
The trustees have decided to continue the fund
with the expectation that greater value can be obtained
for shareholders at some point beyond 2014.
Next week, we will look at the 2013 results for
Republic Bank Ltd.
Returns and volatility in 2013
The Antigua and
Bank (ABDB) says it has
signed a memorandum
of understanding (MoU)
with the Barbados-
based Caribbean Export
allowing legally regis-
tered firms, individuals
as to be in a better posi-
tion to export their
products and services
The ABDB said that
the agreement would
also allow Business
(BSOs) here to take
advantage of regional
and international mar-
kets for their products.
between the ABDB and
Caribbean Export pro-
vides the type of insti-
tutional support nec-
essary to facilitate
access to grant funding
for local businesses
Export s Grant Scheme.
"The scheme sup-
ports the building of
through training and
facilitating trade mark;
and the protection of
copyright material as
well as the opening of
new markets, improve
firms to identify new
sources of supply for
raw materials and fur-
ther increase compet-
itiveness," the ABDB
said in a statement.
It said that locally
registered owned firms
that qualify for assis-
tance under the Direct
Assistance of the Grant
Scheme could obtain
bridge; financing from
the bank and that the
signing of the MoU
"signals the commit-
ment of the Antigua
and Barbuda Develop-
ment Bank to ensuring
that local firms achieve
and maintain a com-
petitive edge and in
addition, enhance their
ability to grow their
businesses by taking
advantage of opportu-
nities to export to new
Bank sign MoU
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