Costa Rica: Stock Market Up 18%

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

Monday, April 8, 2013

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.

Data from the National Stock Exchange (BNV), reveals that for the entire secondary market (including bonds and other instruments) there was also a rise of 39% (data dollarized).

"The rest of the issuers, excluding the Central Bank and the Ministry of Finance, also saw their roles as being more dynamic in 2013, namely, of the 18% in trading volume, the most important players were the public banks," reported

The bonds issued by the Banco de Costa Rica and Banco Popular were preferred, unlike the Banco Nacional and Bancrédito which were less attractive in the market.

According to José Rafael Brenes, BNV's general manager, market conditions also encouraged those who had not yet made any investments and the falling trend put pressure on making purchasing decisions quickly.

For his part, José Mario Murillo, director of the post transactional brokerage firm Grupo Sama, said the trend allowed for more business opportunities.

Jorge Baltodano, director of the brokerage firm Aldesa also noted that an increases in bond prices was the catalyst for the activity.

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