In the stock market, $43 million in stock documents were traded during January, which is 123% more than the amount reported for the same month in 2018, contrasting with the negative variations that have been registered since the political crisis began in April 2018.
The figures from the Nicaraguan Stock Exchange show that between January 2019 and the same month in 2020, stock market negotiations grew by $24 million, from $19 million to $43 million.
From June to November 2018, transactions registered on the Nicaraguan Stock Exchange totaled $316 million, 57% less than reported in the same months of 2017.
According to figures from the Nicaraguan Stock Exchange (BDVN), from January to May 2018, positive interannual variations were reported in the traded amount, however, for the period from June to November a downward trend has been registered.
Using a web platform with key information from all of the markets in the region and the Dominican Republic, Central American stock exchanges propose reviving the plan to create a truly integrated regional market.
Once again authorities at stock exchanges in Central American countries and the Dominican Republic have put back on the table the plan to integrate the stock markets in each each country into a single regional one.
In the first eight months of the year, the volume traded in the primary market grew by almost twice as much as in the same period in 2016, driven by growing product diversification and increased investor demand.
Growth in trading in both the primary and secondary market is due mainly to a greater diversification of financial instruments, attractive returns and a growing interest from investors and companies in the stock market both in finding investment options and in seeking financing.
Trading volume last year reached $1.526 billion, 30% more than what was traded in 2015.
The repo market accounted for most of the volume traded in the stock market in 2016, with an increase over 2015 of 33%.The volume traded in these instruments was 382 million, while in 2015 $289 million was traded.
Between January and March $382 million in securities transactions were traded, 45% more than the amount recorded in the same period in 2015.
Data from the National Stock Exchange indicates that in March alone the volume traded by the five exchanges approved in the stock exchange system amounted to $94 million, an increase of 136% over the same month of 2015.
In 2015 more than $1.2 billion in securities were traded on the stock exchange, a 21% increase compared to 2014, driven by trade in government securities.
Short-term operations, particularly negotiations on the repo market, which led movements in the Nicaraguan Stock Exchange, increased by 37% compared to transactions of these instruments in 2014.
During the first three months of the year $263 million were traded in the stock market, 29.3% less than the amount traded in the same period last year.
So far this year, of the total trading volume, 85% was public sector emissions and 14.7% was securities issued by the private sector.
The Stock Exchange of Nicaragua "... recorded in March a trade volume of $39.9 million, representing a decrease of 31% compared to transactions in the same month last year."
Last year the amount of transactions recorded was $997 million, with highlights including 32% growth in trading in the primary market.
The good performance of the Nicaraguan economy has been accompanied by a sharp rise in the stock market, where a significant dynamism was seen, mainly in the primary market where securities have been traded for the first time.
Between January and April transactions on the Stock Exchange of Nicaragua were registered worth $439 million, more than the $326 million traded in the same period in 2013.
Bonds issued by the Central Bank of Nicaragua are among the most attractive securities, with over $20 million in volumes traded in April alone, according to the Stock Exchange of Nicaragua (BVN).
As the economy grows significantly, reduced government involvement in 2013 led to a meager 1% growth in transactions on the Stock Exchange.
During 2013, transactions in the securities market of Nicaragua grew by just 1%, going from $888.5 million in 2012 to $893.2 million in 2013. The almost zero growth is due to low participation of the government and lack of promotion of its emissions, among other factors.
Initial expectations for the placement of shares in real estate funds worth $2 million was far surpassed, with a total of $9 million in the first year.
Laprensa.com.ni reports that "... the success of the FII is based on the fact that these pay a better percentage for the investment (from 6.5 to 8 percent a year), much more than is usually paid by the financial system on savings, but also offers fewer levels of risk for investors.
In the first five months of supply, real estate investment funds sold $3.4 million in shares with a minimum participation of $5000.
The attractive interest rates offered and "the existence of a secondary market that allows the recovery of the investment when required, have made this an attractive investment instrument", reported Laprensa.com.ni.
Eduardo Ortega, general manager of Invercasa Puesto de Bolsa, says, "As a new product in the country, it was predicted that about five million dollars would be placed. But with the pace we are seeing, we projected that investment could reach up to about 10 million dollars."
Tax incentives need to be created in order for the private sector to become more involved in the stock market.
This is the opinion of some market participants, such as the Invercasa brokerage firm, who believe that the law governing the securities market is robust, but needs to be reformed in order to encourage private participation.
One of these reforms is the inclusion of innovative investment vehicles that would allow public works financing through the stock market, said Edgar Gutierrez, head of Invercasa.
The partnership will allow Nicaraguan entities to access stock market information market from Costa Rica.
According to Jose Rafael Brenes, General Manager of the National Stock Exchange of Costa Rica, the goal is to facilitate access to stock and share products from Costa Rican market, through the signing of a correspondent agreement between broker members", reported Elnuevodiario.com.ni