CARIBBEAN STOCK EXCHANGE REPORT For Week January 17 to 21, 2011 Image Posted on January 24, 2011 by David Please share this blogEmailWhatsAppTweetTelegramPrintShare on TumblrMorePocketLike this:Like Loading... Related
Here is the report 3-14 January 2011. Unfortunately the reports were sent to an old BU address.
While the report are good they seem to lack some fact checking that would give the reader into some insight to unsual trading patterns. For example the statement
Such large price moves on large volume are unusual on the Barbados Stock Exchange and investors will be keeping a close eye on that stock.
Now on the bse they note
** It should be noted that this transaction represents the completion of AMCL Holdings Limited’s offer for ANSA McAL (Barbados) Limited.
Now for people not remember what that is
AMCL bought ansa mcal ( barbados) shares at a discounted prices from sagicor with plan to takeover the company or delist when they get to the 90% threshold.
So it not investor keep a close eye on the stock but a awaiting AMCL takeover notice.
As to why Barbados has so little trading i think we discussed that already.
Thanks for the info anthony.
The difference in the volume of trading on the jamaica stock exchange is note-worthy
The BSE website is sorely in need of update when compare the JSE one
Did I miss something? If the trading on these indices are reflected in the currency of the member countries wouldn’t that partly account for the large volume of shares traded in Jamaica?
1US Dollar =86.00 Jamaican Dollars
1US Dollar=2.00 Barbados Dollars
Well to certain extent the purchase power parity has to be taken into account. Most stocks on jse seem priced at bygone era when Jamaican dollar was close to value of us dollar. At the current value some stock are near few cent worth us. As such people could afford to buy and sell thousand of shares and not worry to much as far as portfolio risk as middle income investors. If they price at a couple us dollars a piece then those shares might represent a significant part of middle income earner portfolio. Which is why to get trading up on the bse we need stock split plus new issue of shares. Low priced shares will allow for more daily trading with people speculating on value.
Has any work been done to assess how listed companies on the BSE have used it to supply their capital needs?
The point was raised about creating the appetite to do crossborder trades. Even if individuals are sluggish why are we not seeing more institutional investors going this route?
Sargeant, the volume of traded is simply the numb er of shares traded and is not affected by exchange rates.
While that is true Justin look at share comparative value to our own and we see that while the cross listed ones are about the same price or at at price where you actually wonder what the Jamaican exchange rate on jse differs so much from the actually one. These share ( not cross listed one)are price at sub us 1 dollar and as such they are million to billions more is share outstanding to float on dialy basis. With so much shares and the equivalent value of trading thousand of them isn’t much of portfolio change to medium income investor while trading million will now just just barely fluctuate any porfolio high income investor.
So this one of the reason why i have said before to get people trading and investing in share we need to have share issues with stock splits to drive the buying in cost down.
To highlight this point lets use gleaner and fcib international. they are currently trading at 2.10 & 114 Jamaican respectively which by current exchange rates gives us 1.33 ( on bse $3 so 1.50 us). fcib current has 1,525,131,934 in outstanding shares in both stock exchange because it cross listed. gleaner has 1,211,243,827 outstanding shares (o/s). If we look @ the rest of the bse o/s share not cross listed we find the the amount of gleaner o/s shares exceed the total amount of bse o/s shares. Now if just one company exceed the o/s of the whole bse we see there is a huge share disparity between the two exchanges.
I wasn’t trying to be critical of your research or align the share price to the exchange rate, but was making the point that on a comparative basis shares in Jamaica are cheaper than shares in Barbados hence there will be greater activity since price drives volume as in many commercial ventures.
There may be other factors affecting volumes e.g. population or a greater awareness among some elements of the Jamaican public that share ownership should form part of a diverse range of assets.
Not taken as a criticism at all. The idea is to have debate.
The number of shares outstanding in Jamaican companies is substantially larger than in Barbados, as pointed out by Anthony.
Having more shares outstanding, hopefully in the hands of a wider pool of shareholders certainly makes for more active trading and more efficient pricing.
Stock splits would certainly increase the number of shares outstanding, but not the spread of the shareholding. I am still mulling through what impact that would have on the level of trading.
Which is why i said share issue and stock splits. If we want or the share issue place cap on number of share a entity or person can buy. Now to be realistic about it must also be variable stock issue with the amount of shares issue change to be reflective of actually sales.
Now of course the biggest issue wouldn’t be the companies. the biggest issue will be the current shareholders. Since for them it be a loss of shareholding voting parity percentages and decrease in the dividend earning due to larger amount of shares. That will be the biggest hurdle to the plan.
I’m writing from TnT. Fantastic work in publishing the indices. I remember a website some years ago, sadly closed now, did something similar. They posted trading results from across the English speaking Caribbean in local currencies and in US on a weekly basis. They also ranked, on an annual basis, the US dollar earnings of those same companies.
I would be very grateful if you could do something similar. You could leave out the earnings ranking. I have been trying something similar but I don’t have either the time or the tools/expertise to properly pursue the project.
I’ve always been interested in Caribbean integration and have always felt that lack of information wasa major deficit. More particularly in the sphere of business. Hopefully, your endeavours and the Caribbean (Stock) Exchange Network will help.
Please let me have the website where the indices and the raw trading data is published.