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The definitive guide to understanding the Barbados Stock Exchange's daily Trading Report. The Report is published daily in the local press and is available for download on our website - http://www.bse.com.bb/reports/trading-reports
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Understanding the Trading Report
Contents • Introduction
– Vision, Mission and Core Values
• Definition of a Stock Exchange
• The Trading Report
– General Narrative
– Index and Market Capitalization
• Measuring the Market
– The Mutual Funds Section
– The News Section
– The Share Summary
• Understanding the Markets
– The Week in Review
• Conclusion
Our Vision
To be a great and lasting Caribbean Institution
by facilitating wealth creation through trading
on an efficient and cost-effective Exchange.
Our Mission
We intend, through education, to foster an
environment of confidence and trust in the
activities of the capital markets, so that all
Barbadians would participate in the trading of
financial instruments.
Core Values
• Integrity
• Fairness
• Quality service
• Confidence
• Trust
• Accuracy
Introduction
• Definition of a Stock Exchange:-
– A secondary centralized market for buying and selling stocks where the price is determined through supply - demand mechanisms. Individuals and institutions buy and sell stocks in an auction-like forum.
The Purpose of the Trading Report
• The Trading Report as its name suggest simply
explains what activity has occurred on the
market on a particular day.
• It is divided into sections
– The narrative and breakdown of activity in the market
– The Indices and Market Capitalization
– The Mutual Fund section
– News items
– Share Summary
– Week in Review (only on last trading day of the week)
– Advancers/Decliners (only on last trading day of the
week)
• The narrative gives detail of the top three
traded securities plus a tabular layout of all
trading activity by market.
The Trading Report - Narrative
• The narrative also reports on the
performance of both market measures; the
indices and market capitalization.
The Trading Report – Indices &
Market Capitalization
Measuring the Market
• The Barbados Stock Exchange uses three major indices:
– Local – Local companies listed on the Regular Market
– Cross Listed – Companies which are listed in Barbados but are
domiciled in another jurisdiction
– Composite- All of the companies listed on the Exchange
• Market Index: An index is essentially an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. For example, knowing that a stock exchange is at, say, 5000 doesn't tell you much. However, knowing that the index has risen 30% over the last year to 5000 gives a much better demonstration of performance.
• Market Capitalization: The total dollar value of all outstanding shares. It's calculated by multiplying the number of shares by the current market price. This term is often referred to as market cap.
• The BSE reports the weekly and monthly
Net Asset Values (NAV) of a select group
of Mutual Funds in Barbados.
The Mutual Funds Section
• The News section details various news
items occurring in the marketplace – Annual
General Meetings, Dividend Declarations,
Put Through Notices, etc.
The News Section
The Share Summary
The Share Summary details daily trading activity by market.
Explanations of the various columns are given below.
The Share Summary Cont’d • Company – Name of the listed security
• Last Trade Date- last date the security traded
• Volume – Number of shares
• High- highest price the security traded at on the trade date
• Low- lowest price the security traded at on the trade date
• Last Close- Closing price on the previous trade date
• Current Close – Closing price that trade date
• Price Change – The difference between the current close and last
close
• Bid Price – the highest price buyer is willing to pay for a security
• Ask Price – The lowest price a seller is willing to accept for a
security
• Bid Size- Correlates to the bid price and gives the number of shares a
buyer is willing to purchase at the quoted bid price.
• Ask Size- Correlates with the ask price and gives the number of
shares a seller is selling at a quoted ask price
Understanding the Markets • Regular Market – the main market for securities, impacts
the index – orders >= 1,000 shares
• Junior Market – smaller or newer companies which do not
meet the listing requirements of the Regular market
• Fixed Income Market – Market for the trading of bonds
and debentures
• Put-through Market – Negotiated Market where the buyer
and seller is known. 20% of the transaction left to market
forces.
• Block Trade Market – The only market for negotiated
transactions which is uninterruptible.
• The Week In Review section is
published as part of the Trading Report
issued at the end of every week.
• It gives a synopsis of the week’s total
trading activity by market, week on week
changes in both indices and market
capitalization as well as a tabular
representation of the week’s activity
inclusive of share price movement data
(Advancers/Decliners).
The Week In Review
• Understanding the BSE Trading Report is an essential
step for anyone interested in becoming actively involved
in investing.
• Daily reports can be accessed here –
– Trading Reports
• Interested persons can also gain insight on investing
here –
– Shares 101
– BSE Guide for Investors
Conclusion
Contact Information
Barry Blenman – Operations Supervisor –
Business Development
Telephone: (246) 436-9871/2
Fax: (246) 429-8942
Website: www.bse.com.bb