Between January and March $382 million in securities transactions were traded, 45% more than the amount recorded in the same period in 2015.
Wednesday, April 13, 2016
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.
"... According to Gerardo Arguello, general manager of the Stock Exchange of Nicaragua, the repo market was boosted considerably in 2016 and enabled this growth. That means that "companies, organizations or national banks that have excess liquidity, lend to others who need money in the very short term, helping to increase the volume" of transactions in the market, said Eduardo Ortega, general manager of INVERCASA Exchange. "
Elnuevodiario.com.ni reports that "...Although growth of 45.4% of the market is significant for connoisseurs of the subject, they do not dare to make projections about what might be the amount achieved in 2016. Last year there was more than US $1.2 billion in transactions. But, in the view of Eduardo Ortega, the stock market is very changeable market and although it has seen significant growth in recent months, it may rise or fall on others. "
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.
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.
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.
Despite a 44% drop in trading volume in October, the sector expects to finish 2009 with a 25% growth.
This was announced by Gerardo Argüello, who explained that they expect higher volume in the last two months of the year, because the Central Bank of Nicaragua will issue various securities.