Big trading for Caribbean last week

For the week January 24 to 28, some 21.278 million shares traded on the six stock exchanges across the Caribbean Community (Caricom), with 48 stocks advancing, 35 declining and and 39 unchanged.

Cable and Wireless Jamaica was the volume leader for a fourth straight week with 10.86 million shares traded, followed by Sagicor Life Jamaica 1.95 million, Gleaner 1.14 million, National Commercial Bank Jamaica 1.1 million, and Desnoes and Geddes 714,009.

Capital and Credit Financial Group posted the largest gain, surging 24.75 per cent for the week, while D&G posted the greatest loss with a decline of 12.94 per cent decline.

The CSX 30 advanced 9.1 points or 0.81 per cent, and the CJSX gained 18.9 points or 1.59 per cent for the week.

The broader CASX also posted a modest gain of three points or 0.3 per cent. Table 1 provides a summary of the broad market indices for the week.

(See Table 1)

The CSX 30 was led by Eastern Caribbean Financial Holdings, National Enterprises Limited and Republic Bank Limited, which posted gains of 13.6 per cent, 9.54 per cent and 4.8 per cent, respectively.

The CJSX was led by strong gains on Lasco Distributors 15.74 per cent, Access Financial Services 1.96 per cent, and Lasco Manufacturing 1.09 per cent. Table 2 provides some details on the best performing stocks for the week.

(See Table 2 )

SECTOR PERFORMANCE

Banking stocks enjoyed a strong week. The CBSX was up 16.93 points, 1.53 per cent, for the week, erasing its losses for the year and moving into positive territory.

The CBSX was led by Capital and Credit Financial, Republic Bank Limited, Scotiabank Trinidad and Tobago and National Commercial Bank which posted gains of 24.75 per cent, 4.79 per cent, 4.13 per cent and 2.34 per cent, respectively.

Demerara Bank Limited was the weak performer in the group, posting a decline of 11.87 per cent.

The CCUX and CCSX were essentially flat for the week. The Communications and Utilities stocks, led by Gleaner and Guardian have been among the strongest performers so far this year, with the CCUX posting a strong 4.5 per cent gain for the month of January.

The Conglomerate stocks have been weak performers for the year with the CCSX posting a 1.62 per cent decline for the month of January.

Insurance, investments, tourism and real estate stocks posted modest increases for the week with the CIIX up 6.5 points or 0.66 per cent for the week and the CTRX up 0.4 points or 0.05 per cent.

The CIIX was led by Eastern Caribbean Financial Holdings 13.6 per cent, National Enterprises Limited 9.54 per cent, and Sagicor Life Jamaica 4.71 per cent. However, the group was pulled down by Famguard and PanCaribbean Financial Services which lost 9.88 per cent and 7.18 per cent, respectively.

So far in 2011, the insurance and investments group has failed to recover from its weak performance in 2010 and the CIIX continues to be in negative territory, down 0.94 per cent year to date.

There has been modest improve-ment in the tourism and real estate stocks with the CTRX up 1.32 per cent year to date.

The anaemic economic recovery in Caricom economies continues to plague manufacturing sector stocks, and the CMSX was down 7.9 points, or -0.69 per cent, for the week.

While gains were posted by Kingston Wharves, up 3.93 per cent, Demerara Distillers 2.61 per cent, and Unilever 2.2 per cent, the index was dragged down by big losses by Desnoes and Geddes, -12.9 per cent, Trinidad Cement, -7.63 per cent, and Caribbean Cement, -7.11 per cent.

The challenges of TCL and CCC point to continuing weaknesses in the crucial construction sector across the region. See Table 3 for a summary of the sector indices.

(See Table 3 )

The evidence so far is that for the month of January, a well diversified regional portfolio would have provided investors with quite decent returns.

Prepared by the Depart-ment of Management Studies, UWI, Cave Hill. Feedback to justin.robinson@cavehill.uwi.edu

Table 1: Broad Market Indices, Jan 24-28, 2011

INDEX Jan 21 Change %CHANGE YTD

Caribbean AllShare Index CASX 1018.9 3.0 0.30% 0.97%

Caribbean Select Index CSX 30 1140.6 9.14 0.81% 0.90%

Caribbean Junior 1205.7 18.9 1.59% 5.0%

Share Index CJSX

Note: The indices are prepared in an identical manner to the Standard &Poors 500 Equally Weighted Index, with a base of 1,000 at January 3, 2010. Returns are in US dollars and represent capital gains, dividends and exchange rate movements.

Table 2: Five Best Performing Stocks, Jan 24-28

Exchange Return Volume

Capital and Credit Financial Group JSE 24.75% 22, 971

Lasco Distributors JSE 15.74% 491, 707

Eastern Caribbean Financial Holdings ECSE 13.64% 46

National Enterprises Limited TTSE 9.53% 26, 835

Republic Bank Limited TTSE 4.79% 18,040

Note: Returns are in US dollars and represent capital gains, dividends and exchange rate movements.

Table 3: Sector Indices, Jan 24-28

Index Change %Change YTD

Caribbean Banking Index (CBSX) 1120.7 16.93 1.53% 0.76

Caribbean Conglomerate Index (CCSX) 1062.8 -1.3 -0.13% -1.62%

Caribbean Communications and 1116.5 -0.7 -0.06% 4.5%

Utilities Index (CCUX)

Caribbean Insurance and 986.9 6.5 0.66% -0.94%

Investments Index (CIIX)

Caribbean Manufacturing Index (CMSX) 1138.4 -7.9 -0.69% -0.026%

Caribbean Retail and Distribution 1085.1 -4.4 -0.40% 2.63%

Index (CRDX)

Caribbean Tourism and Retail Index (CTRX) 863.6 0.4 0.05% 1.32%

Note: The indices are prepared in an identical manner to the Standard & Poors 500 Equally Weighted Index, with a base of 1,000 on January 3, 2010. Returns are in US dollars and represent capital gains, dividends and exchange rate movements.