Caribbean Investment IQ December 2013 | Page 27

Trinidad and Tobago Stock Exchange (TTSE) Figure 9 TTCI & All T&T annual return year-on-year Local equities lead the way The All T&T Index and TTCI both continue to trend upwards 10 months into 2013 with local stocks outperforming their cross-listed counterparts. The All T&T index performance, which recorded a year on year return of 14.39% as at September 2013, doubled the broader TTSE Composite Index (TTCI), which improved by 7.24% in the same period. However, as at 31 October, 2013 while the TTCI value increased by 10.70% or 3.63% more than the index increase for the same period 2012, the 2013 All T&T index increased by 15.76 %, which reflected marginally less growth than the 2012 All T&T index growth of 15.82%. These returns are attractive to investors in the local market who continue to chase dividend yields and potential capital appreciation in an environment of excess liquidity and low interest rates, buying the ‘expensive’ and overvalued stocks at any cost, and holding on to the stocks that continue to pay consistent dividends. Figure 7 Trinidad and Tobago Composite Index: Index Value vs. Volume Traded Source: TTSE, First Citizens Research & Analytics Trade volumes double Total trade volume on the Trinidad and Tobago Stock Exchange for the ten months ending 31 October, 2013 valued above TTD945 million. In 2013, volumes almost doubled that of the same ten-month period of 2012, increasing by 99.15% to 85.3 million units traded. The highest monthly volume traded was recorded in September, with over 13 million or 16% of the total volume traded. In September trade volumes were boosted by the successful listing of First Citizens Bank’s (FIRST) shares on the exchange on 16 September. Within two weeks of listing, over two million of FIRST shares traded hands. October was the second most active month with 14% of total volumes crossing the floor. The volume leader on the First Tier Market for the period January to October 2013 was Trinidad Cement Limited (TCL) with more than 23.9 million or 28.1% of the total shares traded on the market. Jamaica Money Market Brokers Limited was a distant second with approximately 13.6 million or 15.9% of the market volume. Source: TTSE, First Citizens Research & Analytics Figure 8 TTCI performance: 2013 vs. 2012 1200 1150 1100 1050 1000 950 900 All T&T performance: 2013 vs. 2012 2000 1900 1800 1700 1600 1500 1400 1300 1200 On the TTD Mutual Fund Market, over 21 million CLICO Investment Fund (CIF) shares traded, at a total value of TTD460.6 million. CIF, which debuted on the TTSE on 7 January with 204 million units listed at a price of TTD25.00 ended the ten month period at TTD21.60 per share, down 13.6% year-to-date. On 21 August 2013, CIF paid out a TTD0.32 cents per unit dividend. Adding this dividend to the previous CIF dividend payment of TTD0.56 cents on 21 February would result in a TT0.88 cent dividend payment per share for the year. An initial conversion price of TTD25.00 gives a dividend yield of 3.52% and a 4.07% yield using the end of October trading price of TTD21.60. When compared to total market volume traded, including ordinary shares, CIF was second, accounting for 19.7% of volume traded. Source: TTSE, First Citizens Research & Analytics 27