BOURSE SECURITIES LIMITED

Weekly Market Review

2nd January 2012

Local stock market amongst top...

Introduction
The local equity market experienced its best year since 2004 as the T&T Composite Index jumped 21.21% by the end of 2011 (Exhibit 1). This performance placed the local market fifth among the worlds top performing market in 2011 ahead of Jamaica at sixth place and first in the Caribbean, this according to the Business Insider publication. With excess liquidity in the market, limited opportunities for investment, and volatility in the international markets, the local equity market surged to its highest all time year end value since 2004. Local high-dividend paying stocks grew more attractive leading to P/E multiple expansion. The expected increased liquidity arising from the settlement of CLICO bonds may exacerbate the competitive search for the limited valuable opportunities and sustain the elevated levels at least in the short term. Correction of the market maybe be anticipated.
Exhibit1:LocalandRegionalIndicesPerformance Indicesat@1Jan 2011 835.64 1,175.74 85,220.82 80,793.80 675.15 3,053.53 Indicesat@31st December2011 1,012.87 1,466.95 95,296.89 102,049.26 722.95 3,273.51 Change Points 177.23 291.21 10,076.07 21,255.46 47.80 219.98 YTDReturnas@ 31stDecember 11 USDEquivalent 21.21% 24.77% 11.82% 26.31% 7.08% 7.20% 21.02% 24.57% 10.86% 25.21% 7.08% 7.20%

Local/RegionalIndices TTSEComposite TTSEAllTT JSEMarket JSEAllJ'caComposite BSEComposite BSELocal

In 2011, the T&T Composite Index closed at a market capitalisation of $94.5B, the highest since 2007 as reflected in Exhibit 2.

Major Developments in the Stock Market In June 2011, the stock exchange adopted a new method for the determination of all closing stock prices, the Volume Weighted Average Price (VWAP) method. This new system has resulted in higher volatility in prices given that a trade in any number of shares has the ability to move prices compared to the previous system whereby a minimum number of shares needed to be traded for each Company to create movement in prices. One of the major accomplishments of the capital market was the launch of the TTSEs US Dollar Securities Market in August 2011. This caters to the needs of companies wishing to list or raise USD and investors who are interested in investing US Dollar denominated securities on the local Exchange. Only US Dollar Securities which have been registered with the Trinidad and Tobago Securities and Exchange Commission (SEC) are eligible for listing on the TTSE. The market was opened with the listing of 120 million convertible redeemable preference shares issued by Sagicor Financial Corporation (SFC).

Another notable development in the market was the demerger of BCB Holdings Limited in October 2011. BCB Holdings Limited decided to reorganize the Company through a demerge of its Non-Belizean Business from its Belizean Business. It maintained the listing of the Belizean component on the local stock exchange.

T&T Equity Review

Trading Activity
For 2011, the total volume of shares traded was 564.1M, up from the 77.6M traded in 2010.The total value traded for 2011 was $1.0B versus $864.3M in 2010. This represents a 19.3% increase in total traded value over last year. Investors should note that the volumes and values included the 470.5M shares of JMMB ($181.3M) that crossed the floor on August 5th and August 15th.

Volume Leaders
At the close of 2011, the Jamaican companies dominated four of the top five positions as volume leaders. Jamaica Money Market Brokers Limited (JMMB) held the top spot as volume leader, accounting for 475.7M or 84.3% of the total volume traded. The second spot was held by National Commercial Bank of Jamaica Limited (NCBJ) which accounted for 23.9M or 4.2% of 2011 traded volumes. In third position was another cross listed Jamaican company, Capital and Credit Financial Group Limited (CCFG) which posted 10.3M in volumes crossing the floor for 2011. Rounding off the last two spots were Angostura Holdings Limited (AHL) and again Jamaican Supreme Ventures Limited (SVL) which comprised of 1.8% and 1.0% respectively of the 475.7M traded.

Value Leaders
Republic Bank Limited (RBL) took the lead in the total values traded for the year as it accounted for 18.7% or $193.3M of the total value traded. Volume leader JMMB took the next spot with a contribution of $183.7M equivalent to 17.8% of the value traded for the period. Neal and Massy Holdings Limited (NML) came in third with $123.2M followed by AHL again at fourth with $77.9M. Taking the last spot in the top 5 value leaders was National Enterprises Limited (NEL) which accounted for 6.3% or $65.4M.

Advances and Declines

The number of stocks appreciating in price surpassed the stocks that depreciated in 2011. Of the 31 ordinary shares listed there were 20 advancers, 8 declines and 3 stocks prices remaining unchanged. JMMB had the largest upside, appreciating 223.1% for the year. This was followed by CCFG which gained 77.8%. Prestige Holdings Limited moved up 63.9%, NCBJ gained 47.9% and taking the fifth spot was Unilever Caribbean Limited which advanced 44.3%. (Exhibit 4). Of these advancers, four of these stocks were in Bourses top picks for 2011.

On the decline side, Trinidad Cement Limited (TCL) captured the top spot falling 36.1%. Next was One Caribbean Media Limited (OCM) which decreased 32.4%. Taking the third spot was National Flour Mills (NFM) which depreciated 23.9%. LJ Williams B was down 14.5% while Point Lisas Industrial Port Development Corporation Limited (PLD) declined 3.3% (Exhibit 5).

Regional Markets Jamaican Equity Market

In Jamaica, the JSE Market Index was up 11.82% for the year, while the Jamaica Composite Index, which is comprised of only Jamaican companies, moved up 26.31%. In USD terms, the JSE Market Index advanced 11.19%, while the Jamaican Composite Index advanced 25.96%. At the close of 2011, the Jamaican currency remained relatively stable and stood around J$85.72 to US$1.00.

Barbados Equity Market

The Barbados Market showed gains as the Barbados Composite and Local Indices advanced 7.08% and 7.20% respectively. Both indices were up due to the increase in the price of Light and Power Holdings Limited (L&P) at the beginning of the first quarter.

This report is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein. The information and any data contained herein have been obtained from financial data provided to us by the issuers of the subject securities. Investors wishing to purchase any of

the securities mentioned should consult an investment adviser. Projections and estimates are those of Bourse Securities based on current available information.

E-Mail us at admin@boursefinancial.com or phone 628-5550/ 9100 /3982