DEVELOPED MARKETS
United States
U.S stocks ended the shortened trading week with deep losses as investors fled equities on concerns over China’s manufacturing slowdown and volatility in emerging market currencies. The S&P 500 closed below the 1,800 level for the first time since December 17, dropping 2.6% for the week to 1,790.29, its worst weekly percentage loss since June 2012. The index is now 3.1% below its record high reached on January 15. The Dow Jones dropped 3.5% for the week, to its worst weekly decline since 2011. The selloff was linked to developments in the emerging markets (see Emerging Markets below)

US Stock Markets Performance to January 24, 2014

Index	Closing Price	Weekly Price Change	YTD
S&P 500	1,790.29	-2.63%	-3.06%
Dow Jones Average	15,879.11	-3.52%	-4.10%

Source:Bloomberg, First Citizens Research & Analytics

Q4 Earnings Watch

Netflix

Netflix on Wednesday reported a fourth-quarter profit of USD48 million or 79 cents a share on revenue of USD1.18 billion. During the same period a year ago, Netflix earned USD8 million, or 13 cents a share, on USD945 million in sales. The company said it added 2.3 million new U.S. video streaming subscribers during the quarter, to give it 33.4 million such members.

 

European Markets

The European markets were affected by the same factors that spurred the U.S. market selloff (see Emerging Markets below).

European Stock Markets Performance to January 17, 2014

Index	Closing Price	Weekly Change
STOXX Europe 600	324.75	-3.29%
UK FTSE 100	6,663.74	-2.42%
German DAX	9,392.02	-3.60%
France CAC-40	4,161.47	-3.84%

 

Emerging Markets

The Emerging markets were rocked by a wave of devaluations and the continuance of poor data coming out of China. The developments shook investor confidence and led to selloffs across the board. The selloff began on Thursday as policymakers devalued the Argentine peso, the Turkish lira and South African rand plunged while Ukraine’s hryvnia sank to a four-year low. This was further exacerbated after a gauge of manufacturing activity in China (PMI) unexpectedly contracted to 49.6 in January from 50.5 in December, dropping below the 50 line which separates expansion of activity from contraction. This has reinforced concerns that China’s growth is slowing.

TRINIDAD AND TOBAGO
The TTSE Composite Index (TTCI) closed at 1,196.37 on 24 January, increasing by 0.16 points or 0.01% for the week, a 0.96% improvement from the beginning of 2014. The All Trinidad and Tobago Index, improved by 2.93 points or 0.15% to end the week at 2,021.48. The Cross Listed Index fell by 0.67% or 0.33 points to end the week at 48.81. Overall there were 7 stocks advancing and 8 declining. For the trading week, Guardian Holdings Limited (GHL) was the top performer, having the largest price appreciation, increasing by 1.82% from TTD13.75 to TTD14.00. The major decliner for the second consecutive week was National Commercial Bank Jamaica Limited (NCBJ), down 3.85% or TTD0.04 from TTD1.04to TTD1.00. The volume leader was GraceKennedy Limited with 142,840 shares traded or 14.34% of all trades. On the TTD Mutual Fund Market, 634,728 of CLICO Investment Fund (CIF) shares, valued at TTD14,233,005were traded.Last week CIF’s share price rose by 0.62% or TTD0.14 to end the week at TTD22.64. Year-to-date CIF is up 2.27%.

TRADE AND MARKET ACTIVITY

	Value	Weekly Change (%)	YTD Change (%)
TTSE Composite Index	1,196.37	0.01	0.96
All T&T Index	2,021.48	0.15	1.39
Cross-Listed Index	48.81	-0.67	-1.25

Source: Trinidad & Tobago Stock Exchange, First Citizens Research & Analytics

 

MAJOR PRICE CHANGES FOR THE WEEK

 

DIVIDEND PAYMENTS

Security	Amount	Ex-Div Date	Record Date	Payment Date
FIRST FCI	TTD1.09(F) USD0.015(F)	27 DEC 13 17 DEC 13	31 DEC 13 19 DEC 13	24 JAN 14 30 JAN 14
AGL	TTD0.26 (F)	07 JAN 14	09 JAN 14	03 FEB 14
NCBJ CIF	JMD0.32(I) TTD0.64(F)	05 FEB 14 29 JAN 14	07 FEB 14 31 JAN 14	20 FEB 14 21 FEB 14

 

DIVIDEND YIELDS

*yields based on current prices and trailing dividend

 

TRADING SUMMARY

VOLUME ACTIVITY

The market saw a decrease in trading activity last week. A total of 995,941 shares traded, representing a 60.3% decrease from the 2,508,778 shares traded in the previous week on the First Tier Market. The dollar value of last week trades also decreased by 76.4% from TTD80,231,100 in the previous week to TTD18,938,475 this week. GraceKennedy Limited (GKC) was the volume leader for the week with 142,840 units traded or 14.3% trades of the total market. Trinidad Cement Limited came in a close second with 137,418 shares traded or 13.80% of all trades.

 

Source: Trinidad & Tobago Stock Exchange, First Citizens Research & Analytics

 

Recent News

WITCO required to effect changes to its packaging and labeling of tobacco products and dispensers.

• As a result of the passage and subsequent publication of the Tobacco Control Regulations 2013, (following the proclamation of the Sections 10,11,23-28 of the Tobacco Control Act, 2009), the West Indian Tobacco Company Limited (WITCO) would be required to effect changes to its products and business operations on or before 9 January, 2015.
• Some of the changes to be effected will include:
• The requirements for a declaration on packs of product and health messages on the lower half of the front and back of the packs.
• Rotation of the health messages every 12 months and distribution of the 12 health messages within every case.
• Changes to the physical attributes of dispensers supplied by the Company including a requirement to depict the health messages on the dispensers.

NCBJ to outsource some functions

• National Commercial Bank Jamaica Limited is focused on becoming leaner and more efficient, according to Patrick Hylton, group managing director of NCBJ.
• This announcement comes after NCBJ cut just under 50 staff last year and has consolidated some branches and business units.
• The bank made JMD8.6 billion for the year, but it was a disappointment for NCBJ whose profit the year before was JMD10 billion and a record-setting JMD13.9 billion in 2011.
• In its first quarter ending December 2013, the bank made JMD2.9 billion in net profit, which is only marginally higher than the prior year results. Growth was recorded in retail banking, payment services and general insurance. The latter was boosted by new income of JMD347 million from new acquisition, Advantage General.
• The bank intends to pursue a strategy of aggressive management restructuring, which has led to the departure of top executives such as Chief Financial Officer Yvonne Clarke.
• The bank is also rolling out a new business model, “Banking on the Go”, under which it will be creating self-serve banking halls for account holders.
• NCBJ current share price is TTD1.00, down 9.91% year-to-date. NCBJ will pay a dividend of JMD0.32 per share to shareholders on 20 February, totaling JMD493 million.
• Current dividend yield for NCBJ is 4.18%.

Eastern Caribbean
Two companies traded on the secondary market of the Eastern Caribbean Securities Exchange. Twenty thousand St Kitts Nevis Anguilla National Bank Ltd shares traded at XCD2.20 per share, while three thousand nine hundred and thirteen S L Horsford & Co Ltd shares traded at XCD1.80 per share.

Meanwhile, On the Regional Government Securities Market, the Government of St Lucia’s 180-day Treasury Bill, auctioned on Monday January 20, raised 25 million. The competitive uniform price methodology was used, resulting in a discount rate of 6.00%.

Also, the Government of Antigua & Barbuda’s 7-year US Dollar Bond auctioned on Wednesday January 22, raised USD7.5 million. The competitive uniform price methodology used, resulting in an interest rate of 7.5%.

The next auction on the Regional Government Securities Market will be that of the Government of St Lucia’ 91-day Treasury bill, which will take place on 30 January 2014. The maximum discount rate offered from this auction is 6.00%. The minimum bid size is XCD5,000.00.

Jamaica
In Jamaica, stocks of 28 companies traded, with an advance decline ratio of 6:13, with 9 companies trading firm. Jamaica Money Market Brokers Ltd was the volume leader with over 58.16 million units traded, 71.46% of total volume. Caribbean Cement Company Ltd was the lead advancer, recording a price increase of 34.90%.  Meanwhile of the 13 decliners, Mayberry Investment Ltd recorded the most significant decline of 8.50%. 

Barbados
Three companies crossed the floor of the Barbados Stock Exchange, with a total of 3,325 shares traded. Cable & Wireless (Barbados) Limited was the volume leader, trading 46.38%.