For the third quarter of this financial year, the performance of equity markets of Trinidad& Tobago, Jamaica and Barbados was relatively anaemic after showing signs of improvement in the first half of the year . Trinidad’s 2010/11 Budget Presentation did not assist in boosting investor confidence, as the Minister of Finance announced a projected deficit of TT$7.7 billion (5.48 per cent of GDP) for the 2010/11 fiscal year. The Barbados market also continued on a declining path.

For the nine months ended September 30, 2010, the T&T Composite and All T&T Indices both closed on a positive note. The T&T Composite Index ended at 821.65 points advancing 7.37 per cent year-to-date (YTD). The All T&T Index rose 4.79 per cent YTD to close at 1151.86 points.

Regionally, in the Jamaican market, the JSE Market Index picked up at the end of the first quarter until the beginning of the third quarter, after which it fell and like Trinidad&Tobago remained fairly constant until the end of September. The JSE Market Index advanced 0.35 per cent YTD. The Jamaican Composite Index advanced 10.10 per cent over the period. In USD terms, the JSE Market Index advanced 4.24 per cent, while the Jamaican Composite Index advanced 14.37 per cent. Over the nine months the Jamaican currency has appreciated 3.7 per cent and stands at around J$86.25 to US$1. Unlike its neighbors, in the Barbados equity market, the Barbados Composite and Local Indices both declined, depressing 8.98 per cent and 4.96 per cent respectively over the nine month period.

T&T equity review

Investors continued to show subdued interest in the equity market in the first nine months of 2010 as the volume of shares crossing the floor moved from 58.5 million for the first nine months of 2009 to 64.7million representing a 10.5 per cent increase in the volumes traded. However, the value of shares traded contracted 52.75 per cent, indicating that the increase in trading occurred in the “cheaper” stocks.

For the third quarter, market activity was somewhat dormant as 18.0 million shares were traded, this accounted for only 28 per cent of the total shares traded in 2010 versus the 38 per cent in 2009 when 22.4 million shares crossed the floor.

The top three volume leaders for the nine months were Jamaican cross listed companies. National Commercial Bank of Jamaica Limited (NCBJ) was the leader accounting for 15.23 per cent of the total stocks traded, this was followed by JMMB’s share of 11.79 per cent or 7.6 million shares and in third was GraceKennedy Limited (GKC) which made up 10.97 per cent of the total stocks traded. National Enterprise Limited (NEL) and Trinidad Cement Limited (TCL) followed with shares of 8.81 per cent and 8.70 per cent respectively.

For the July to September period, GKC took the lead with 4.1 million shares being traded followed by TCL with 3.5 million shares. For these stocks, over 50 per cent of the trade occurred in the third quarter. NCBJ came in next with 1.7 million shares traded.

Of the 31 ordinary shares listed, regular trading occurred in 28 shares. The three shares that did not trade were Angostura Holdings Limited (AHL) that is still suspended, Readymix Limited (RML) and Barbados Shipping and Trading Company Limited. The most illiquid shares were One Caribbean Media Limited (OCM), BCB Holdings Limited (BCB) and Berger Paints Trinidad Limited.

There were 14 advances, 10 declines and 7 stocks remaining flat.

The major advancer was NCBJ which was up 44.2 per cent for the period, this was followed by Agostini Limited with a 30.7 per cent increase in its share price. National Flour Mills Limited (NFM) increased 30.4 per cent. Advancing 27.4 per cent and taking the fourth place was the West Indian Tobacco Company Limited (WITCO), the last spot in the top advancers went to FirstCaribbean Bank Limited (FCIB), which gained 27.1 per cent YTD.

On the decline side, Capital and Credit took the lead falling 51.9 per cent for the period. Sagicor Financial Corporation (SFC), a non-banking financial company, fell 23.4 per cent. This was followed by TCL, with a decline of 20.8 per cent. Supreme Ventures Limited (SVL) and conglomerate Neal and Massy Limited (NML) both contracted 10.0 per cent for the period.

Jamaica equity market

Trading activity in Jamaica for the nine months of 2010 was down when compared to the previous year. The number of shares traded for the period fell by 11.3 per cent to 1.03 billion (discounting the 1.3 billion trade of SVL in January).

For the third quarter of 2010, the volume of shares traded accounted for only 20 per cent of the 1.03 billion traded, indicating the dormancy of market activity. Similar to the Trinidad and Tobago market the third quarter performance was anaemic.

Berger Paint Limited (BRG) led the price advances increasing by 108.33 per cent, Carreras Limited (CAR) and Hardware and Lumber (HL) jumped 43.29 per cent and 32.86 per cent respectively. While GraceKennedy Limited (GK) gained 30.62 per cent, Kingston Wharves Limited (KW) advanced 30.19 per cent.

Barbados equity market

Relative market inactivity continued in Barbados for the nine month period.

In Barbados, Barbados Farms Limited took the lead in price advances, increasing by 19.5 per cent YTD. Fortress Caribbean Property Fund followed with a 15.0 per cent increase, while West India Biscuit Limited advanced by 9.4 per cent. FirstCaribbean International Bank Limited followed, with its price increasing by 9.1 per cent and One Caribbean Media Limited share price grew by 3.2 per cent YTD.