CARICOM STOCK REPORT: 2011 REVIEW

CARICOM STOCK REPORT: 2011 REVIEW Caricom stocks enjoyed a solid year in 2011, as 2,218,769,308 shares valued at US$498,595,783 crossed the floors of the six stock exchanges across Caricom. For the year, 84 stocks advanced, 36 declined and 6 remained unchanged. Jamaica Money Market Brokers was the volume leader with 569,080,751 shares being traded, Lasco Distributors posted the largest gain for the year (284.99%), while on the losing end, First International Bank Jamaica fell 51.14%. For the year, twenty-four of the CSX 30 stocks advanced and six declined. The CSX 30 gained 185 points to close the year at 1,315, up 16.41% for the year. On the Junior Market, eight stocks advanced and five declined as the CJSX gained 755.80 points points to close the week at 1,816.90, up 71.22% for the year. There were noteable gains for Lasco Distributors (284.99%), Lasco Financial (140.79%), Dolphin Cove (69.72%), HoneyBun (59.95%), AMG Packaging (54.15%), Blue Power (30.58%) and Jamaica Teas (25.42%). Table 1 provides a summary of the broad market indices for the week as well as some international reference points. As can be seen from Table 1, the CSX 30 provided higher returns with less volatility than the S&P 500 and the FTSE 100, in 2011. The evidence of the last two years since we have been doing these indices suggest, that a well diversified Caricom portfolio outperfoms many international benchmarks and Caribbean investors may be missing out on solid returns right in their own back yard. Table 1: Broad Market Indices January 3 to December 30 2011 Index Year To Date Volatility Return per Unit of Risk Caribbean AllShare Index CASX 1,795.12 76.87% 2.96% 25.99 Caribbean Select Index CSX 30 1,315.00 16.41% 0.27% 60.12 Caribbean Junior Share Index CJSX 1,816.90 71.22% 1.33% 53.47 S&P 500 (USA) 1,257.60 0.00% 1.44% 0.00 FTSE 100 (UK) 5,572.30-5.55% 1.34% -4.16 Sector Analysis Table 2 provides a summary of the sector indices, followed by details on the performance of the stocks in each sector. Table 2: Sector Indices January 3 to December 30 2011 Index Year to Date Volatility Return per Unit of Risk Caribbean Banking Index (CBSX) 1,254.6 13.50% 0.36% 37.34 Caribbean Conglomerate Index (CCSX) 1,194.7 13.15% 0.40% 33.26 Caribbean Communications and Utilities Index (CCUX) 1,107.4-0.72% 0.57% -1.26 Caribbean Insurance and Investments Index (CIIX) 1,171.5 26.94% 0.71% 37.83 Caribbean Manufacturing Index (CMSX) 1,291.9 13.80% 0.42% 32.69 Caribbean Retail and Distribution Index (CRDX) 1,193.9 17.07% 0.87% 19.70 Caribbean Tourism and Real Estate Index (CTRX) 1,600.1 85.60% 3.35% 25.58

The CBSX advanced 13.50% in 2011, as thirteen banking stocks advanced, two were unchanged and eight were unchanged. There banking group was led by gains for investors Barita Investments (134.69%), Bank of Trade and Industry (75.23%), Republic Bank Guyana (52.73%), NCB Jamaica (49.85%), Citizens Bank (49.48%), Demerara Bank Limited (44.52%), Scotia Bank TT (39.87%), Capital and Credit Financial Group (36.70%), Bank of Bahamas (30.41%), Republic Bank Limited (28.05%) and Scotia Group Jamaica (19.93%). There were losses for invstors in FCIB Jamaica (51.14%), Finance Corporation Bahamas (37.76%) and First Fidelity Bank Bahamas (15.21%). The CCUX declined 0.72% in 2011, as eight Communications and Utilities stocks advanced and six declined. There were gains for investors in Light and Power Holdings (116.92%), Gleaner (45.06%), Dominica Electricity Services (23.00%), Radio Jamaica (13.33%) and Cable and Wireless Barbados (13.09%). However, the group was held down by losses for investors in Cable and Wireless Jamaica (31.63%), One Caribbean Media (29.59%), Cable Bahamas (19.12%) and Consolidated Water (8.99%). The CCSX advanced 13.15% in 2011, as all eight Conglomerate stocks posted gains in 2011. The group ws led by gains for investors in Pan Jamaican Investments (29.84%), Neal and Massey (25.78%), Grace Kennedy (25.38%), Jamaica Producers (21.24%), Ansa Mcal (20.05%) and SL Horsford (20.0%). The CIIX advanced 26.94% in 2011, as twelve Insurance and Investments stocks advanced and four declined in 2011. The group was led by gains for investors in JMMB (214.83%), National Enterprises (49.08%), Sagicor Life Jamaica (46.09%), Pan Caribbean Financial Services (41.60%), Scotia Investments (38.08%), Mayberry Investments (34.09%) and Guardian Holdings Limited (15.12%). There were losses for investors in Doctors Health Services (21.25%), Eastern Caribbean Financial Holdings (16.30%) and Insurance Corporation of Barbados (12.13%). The CMSX advanced 13.80% in 2011, as twenty one Manufacturing stocks advanced, ten declined and one was unchanged in 2011. The group was led by gains for investors in Berger Paints Jamaica (57.84%), Kingston Wharves (49.98%), Unilever (47.75%), Desnoe &Geddes (47.18%), Flavourite Foods (37.73%), West India Tobacco (30.80%), Bico (26.53%), Demerara Tobacoo (22.33%), Sterling Products (21.34%) and Montego Bay Ice (11.55%). There were losses for investors in Trinidad Cement (39.89%), Barbados Farms (39.76%), Salada Foods (29.68%), National Flour Mills (19.75%) and Banks Holdings (15.50%). The CRDX advanced 17.07% in 2011, as nine Retail and Distribution stocks advanced, two declined and one was unchanged. There were gains for investors in Prestige Holdings (65.06%), Agostini s (42.06), Carreras (25.83%), Hardware & Lumber (25.80%), AML Foods (25.77%) and Palace Amusements (14.27%). There were losses for investors in Ansa Mcal Barbados (20.61%) and TDC (16.22%), The CTRX advanced 85.60% in 2011, as five Tourism and Real Estate stocks advanced, one declined and two were unchanged. There were gains for investors in Pegasus (85.68%) and Ciboney (65.24%). There were losses for investors in Almond Resorts (19.35%).

Tables three and four provide some widely used financial metrics on the biggest movers for the year. Table 3: Top Ten Gainers For 2011 EXCH Index Return Close Volume Volatility Sharpe Measure Lasco Distributors JSE CJSX 284.99% $0.1553 22,270,301 3.18% 89.64 JMMB JSE CCUX 214.83% $0.1432 569,080,751 2.54% 84.60 Lasco Manufacturing JSE CJSX 142.79% $0.1609 26,426,600 3.28% 43.47 Lasco Financial JSE CJSX 140.79% $0.0721 13,262,605 4.74% 29.72 Barita Investments JSE CBSX 134.69% $0.0544 14,217,653 2.36% 56.96 Light & Power BSE CCUX 116.92% $12.6601 7,192,122 7.12% 16.42 Pegasus JSE CTRX 85.68% $0.2597 38,712,414 3.35% 25.60 Bank of Trade & Industry GASCI CBSX 75.23% $1.3642 39,000 1.90% 39.67 Dolphin Cove JSE CJSX 69.72% $0.0878 24,421,720 2.32% 29.99 Ciboney JSE CTRX 65.24% $0.0006 4,862,891 6.64% 9.82 Table 4: Biggest Decliners In 2011 EXCH Index Return Close Volume Volatility Sharpe Measure FCIB Jamaica JSE CBSX -51.1% $0.0751 80,049 16.10% -3.18 Trinidad Cement TTSE CMSX -39.8% $0.2659 3,167,297 1.65% -24.23 Barbados Farms BSE CMSX -39.7% $0.7389 62,452 2.10% -18.95 Finance Corporation BISX CBSX -37.7% $4.5000 175,739 2.26% -16.73 CW Jamaica JSE CCUX -31.6% $0.0023 289,218,353 4.08% -7.75 Salada Foods JSE CMSX -29.6% $0.1024 13,983,766 0.88% -33.66 One Caribbean Media TTSE CCUX -29.5% $1.7884 479,598 1.31% -22.61 Doctors Health Services BISX CIIX -21.2% $1.2400 41,920 1.08% -19.69 AnsaMcal Barbados BSE CTRX -20.6% $5.7882 2,788,400 0.00% National Flour Mills TTSE CMSX -19.7% $0.1089 2,632,735 2.17% -9.12

The following tables provides summary information on Caribbean Stocks in 2011. Table 5. Most Active Stocks In 2011 Volume Traded Value Traded Market Capitalization JMMB 569,080,751 $51,419,732 $ 209,536,121 CW Jamaica 289,218,353 $762,008 $ 20,294,609 NCB Jamaica 180,880,177 $52,338,776 $ 799,269,348 Jamaica Broilers 119,247,609 $9,013,070 $ 81,982,110 Pan Caribbean Financial 99,871,532 $30,446,934 $ 168,045,358 Services Sagicor Life Jamaica 91,934,986 $10,176,176 $ 12,027,515 Caribbean Producers 81,384,776 $2,605,300 $ 35,565,491.31 Gleaner 75,957,539 $1,822,546 $ 30,770,344 General Accident & Insurance 63,756,530 $1,889,583 $ 29,770,222 Table 6. Most Valuable Companies at December 30 2011 Exchange Market Capitalization Pegasus JSE $ 259,468,879,418 Republic Bank Limited TTSE $ 2,407,239,798 First Caribbean Bank Jamaica JSE $ 2,258,015,881 Ansa Mcal TTSE $ 1,503,990,246 National Enterprises Limited TTSE $ 1,399,581,621 Scotia Bank Trinidad & Tobago TTSE $ 1,380,200,752 Scotia Group Jamaica JSE $ 862,681,030 West India Tobacco Company TTSE $ 803,689,293 National Commercial Bank Jamaica JSE $ 799,269,348 Commonwealth Bank Limited BISX $ 688,320,003 Table 7. Highest Dividends Payers in 2011 (Dividends Per Share (US $)) Exchnage Dividend Per Share (US$) Lascelles JSE $ 0.49 St. Lucia Electricity Services ECSE $ 0.46 Republic Bank Limited TTSE $ 0.43 Cable and Wireless Barbados BSE $ 0.38 West India Tobacco Company TTSE $ 0.34 JS Johnson BISX $ 0.32 Wibisco BSE $ 0.30 Commonwealth Bank Limited BISX $ 0.24 Demerara Tobacco Company GASCI $ 0.24 Unilver TTSE $ 0.21

Table 8. Best Risk/Return Trade Off In 2011 Sharpe Performance Measure Return for Year Wibsicso 620.02 5.99% Cable & Wireless Barbados Lasco Distributors 162.65 13.09% 89.64 284.99% Volume Traded 13,538 508,028 22,270,301 Close price Dividend per Share Volatility $4.9310 $0.30 0.01% $2.6305 $0.38 0.08% $0.1553 $0.001626 3.18% JMMB 84.60 214.83% 569,080,751 $0.1432 $0.003486 2.54% Unilever 70.32 47.75% Scotia Bank Trinidad & Tobago 66.25 39.87% West India 58.29 30.80% Tobacco Agostinis 57.30 42.06% Barita Investments Limited 56.96 134.69% 546,325 860,455 162,229 540,744 14,217,653 $5.0587 $0.21 0.68% $7.8268 $0.20 0.60% $9.5405 $0.34 0.53% $2.1087 $0.02 0.73% $0.0544 2.36% $0.000408 Prestige 44.32 65.06% $1.0886 $0.02 1.47% Holdings 1,923,227 NEL 43.98 49.08% 4,671,258 $2.3326 $0.09 1.12% Department of Management Studies, UWI Cave Hill. Justin.Robinson@uwi.cavehill.edu