After ten years of trading on the Barbados Stock Exchange (BSE), the Jamaican financial firm Jamaica Money Market Brokers Group Limited (JMMBGL) is set to quit the local money market.
In what he described as a voluntary delisting, JMMBGL Chairman Archibald Campbell told shareholders in a letter that “after careful assessment of the sustained low levels of trading in the shares on the BSE, the board of directors recommended that shareholders vote in favour of the special resolution to delist from that stock exchange”.
Campbell said the recommendation to delist from the BSE was primarily due to the low levels of trading, which “unfortunately does not justify the cost to maintain the listing”.
He said as at December 31, 2016, the number of shareholdings, excluding the Employee Share Ownership Plan, stood at 1.1 million on the BSE, compared with 637.4 million on the Trinidad and Tobago stock market.
“The trading activity seems to have been negatively impacted by the limited supply of shares and the overall macroeconomic conditions affecting Barbados. By all indications the low trading of the shares on the BSE will therefore be likely to continue for the foreseeable future,” Campbell said.
The company had gone from trading more than 216,000 volumes in 2008 to just 2,000 last year, following some level of fluctuation over the years.
Trading of the company’s shares on the BSE over the decade was significantly lower than the number of trades on the Jamaica and Trinidad and Tobago stock exchanges.
Statistics also showed continued declines in the company’s share price in Barbados, where there are only 134 JMMBGL registered shareholders.
“The trade value has declined over the period, amidst a fall in the share price from BD$0.39 at the end of 2008, to a low of BD$0.15 at the close of 2016, a decline of 62 per cent over the listing period. The number of trades per calendar year peaked at ten in 2008, declining to four by the end of 2016, which shows a trend of illiquidity on the BSE. Over the past nine years, JMMB’s trading has averaged 0.25 per cent of the total BSE market volume,” Campbell explained.
Shareholders will be invited to vote on the resolution at the upcoming JMMBGL annual general meeting, which is slated to take place on September 19, at the Jamaica Pegasus Hotel in Kingston, Jamaica.
Shareholders who are unable to attend the meeting may vote by proxy. Proxy form and submission details are contained in this JMMBGL 2017-2018 annual report. (MM)