Costa Rica: Stock Market Activity Shrinks 4%

Between January and November 2017, the volume traded on the stock exchange was $43,153 million, 4% less than the amount traded in the same period in 2016.

Wednesday, December 13, 2017

According to figures from the National Securities Exchange (BNV), as of November of this year 78,836 operations were recorded for a total of $43.153 billion, 4% lower than the $44.911 billion transacted in the same period in 2016.

Regarding this decrease, José Rafael Brenes, manager of the BNV, explained to Elfinancierocr.com that "... the decrease is justified, mainly, by the fund raising policy of the Ministry of Finance (the country's main issuer), which favored direct placements with instruments that are not easy to negotiate in the secondary market, making the value traded lower. "

" In addition, this year the composition of transactions changed, since 48% was placed in national currency and 52% in foreign currency, contrary to what was seen in the last five years when national currency was the main protagonist in transactions. "

"... In 2018, the picture may not be different and in the view of the authorities it is worrisome that the Treasury has announced that it will try to finance itself with foreign resources through local mechanisms, which will reduce liquidity in the local market."

* The contraction of 4% is an estimate by CentralAmericaData based on official figures from the Annual Bulletin of the BNV for the years 2016 and 2017. However, the article from which the statements by manager José Rafael Brenes were taken refers to a decrease that does not correspond to the data mentioned in our article.

More on this topic

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In 2017, $2.494 billion was traded on the stock market, 34% more than the sum total of operations last year.

The Central Bank of Nicaragua reported that last year they observed in the stock market " ... the predominance of the national currency, representing almost 88% of total trades in different markets."

Costa Rica: Banks Intermediate with Stock Exchange

December 2014

Banks authorized by the Superintendency of Securities may perform operations of clearing and settlement of securities in the stock market, which until now has only been done by brokerage houses.

With this modification in the regulations banks may provide more support for trading by its investors, providing the service of clearing and settlement of securities transactions which previously were only handled by brokerage houses.

Costa Rica: Stock Exchange Operations Continue to Fall

December 2014

Low interest rates, uncertainty and a declining share of securities issued by the government explain the 15% drop in the number of trades in 2014 compared to 2013.

A few days after the end of the trading year, the stock market is preparing to close 2014 with numbers lower than 2013, following the downward trend in the number of transactions seen since 2009.

Costa Rica: Stock Market Up 18%

April 2013

The fall in interest rates has caused an increase in bond prices, encouraging holders to make profits.

During the first quarter of 2013, the stock market in Costa Rica grew by 18%, with the secondary debt market being the best performing, going from $1.34 billion in the first three months of 2012 to $3.459 billion in the same period of 2013.

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