The Caribbean region, over the past couple of years, has emerged as a capital market powerhouse, with the Jamaica Stock Exchange being listed among the best performing stock exchanges in the world.
But did you know that the Barbados Stock Exchange is the third-largest in the English-speaking Caribbean? Today we’re going to learn some more interesting facts about the BSE.
Barbados Stock Exchange
Jodi-Kay Williams
The Barbados Stock Exchange (BSE) is the third-largest stock exchange in the Caribbean region, which has been emerging as a capital market powerhouse in recent years.
Originally founded in 1987 as the Securities Exchange of Barbados, the BSE is one of the five major stock exchanges in the English-speaking Caribbean.
The others are the Eastern Caribbean Securities Exchange, the Jamaica Stock Exchange, the Trinidad and Tobago Stock Exchange, and the Guyana Stock Exchange.
The BSE currently has 21 listed securities with trading taking place Monday-Friday.
These securities include a combination of government bonds and shares in companies that mainly operate in the consumer goods and financial services industry.
A few of the securities listed on the BSE are also cross-listed on other regional and international exchanges.
For example, Sagicor Financial Corporation is listed on both the BSE and the London Stock Exchange; One Caribbean Media is also on the BSE and Trinidad and Tobago Stock Exchange; and Eppley Caribbean Property Fund is on the BSE, TTSE and JSE.
The BSE has three main indices; the main market, the innovation and growth market and the international securities market.
The Innovation and Growth Market, formerly known as the Junior Market is specifically geared towards small and medium-sized companies. It caters to companies with gross assets worth at least BBD$500,000 (US$247,000). These companies are also required to have at least BBD$200,000 (US$99,000), in equity capital.
The International Securities Market allows for securities from across the world to be listed and traded on the BSE.
While the Main Market is where most of the action occurs, with most securities being listed there. Trading on the BSE is not as robust as it is on other stock exchanges such as the JSE, with only one or two companies’ stocks trading each day.
Share prices on the BSE range from BBD$0.30 Bajan (US$0.15) to about BBD$31 (US$15). For comparison, prices on the JSE currently range between less than JMD$1, to over JMD$1000 or about US$7 dollars.
Unlike the JSE where stock prices fluctuate based on daily trading, some prices on the BSE can remain extended periods of time because no one is buying or selling them.
Investing in the Barbados Stock Exchange is similar to investing in the JSE.
Customers can choose from a list of authorised brokers who will help them open an investment account. Then based on their financial needs, customers will be able to decide what stocks they want to invest in.
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