Panama's Stock Market: The Good, the Bad and the Ugly

Analysis of the current state of the Panamanian capital market, including the confidence threatened by various financial setbacks, and the opportunities to make the much needed structural changes.

Friday, January 15, 2016

Martesfinanciero.com reviews three episodes which have shocked the Panamanian financial market in recent weeks: "These events have shaken the financial system and put market players on alert. In relation to this the ex superintendent of Banks, Olegario Barrelier said: 'What we have achieved in 45 years has been damaged in a matter of a few days'. Barrelier recalls the achievement of having built "an atmosphere of trust 'in the Panamanian marketplace since 1970."

He is refering to the impact of the declaration of missed deadline for maturity of an issuance of $4 million that was part of the restructuring of bond and securities issued by the financial company La Generosa, which comes on top of the bankruptcy of the companies RG Hotels and Casa de Campo Farallon. All of which occurred amidst headlines regarding the complicated liquidation of Financial Pacific.

"... The Superintendent of Securities, Marelissa Quintero de Stanziola recognizes the potential impact of the three cases and argues that 'they are definitely having effects on the market'. But she warned that a situation of this kind represents 'an opportunity to take measures to strengthen the system and perhaps repeat what we all know in relation to how we ourselves should be the guarantors of our investment.' "

"... The agents of the financial system and the investing public are still unaware of the impact of these cases on the exchange. Neither has its evolution been felt in in transaction rates, and in this sense the superintendent Marelissa Quintero said that the stock market is keeping up its productive rhythm and growth rate. For now, the water continues to run under the bridge. "



More on this topic

Panama - El Salvador Stock Market Integration

October 2017

Four months after the operations of the two markets were integrated, five brokerage firms are already carrying out transactions and four other are waiting for their operating permit to be processed.

The attractiveness of the Panamanian stock market for both investors and companies raising money explains the great interest that the brokerage firms in El Salvador have shown in being part of the platform that allows them to operate remotely in the Panamanian market.

Panama: Risk Ratings for Securities Issues

September 2016

The new regulation under public consultation states that all issues of securities registered with the Superintendency of Securities Market must have a risk rating.

The aim of the new regulations proposed by the Superintendency of Securities (SMV) is to provide more information on the emissions market for investors, so that they can "...

Panama: Increase in Emissions on Stock Market

September 2016

Between January and June registrations of securities issues amounted to $4.2 billion, up from the $2.944 billion recorded in 2015.

If the number of new issues registered with the Panamanian Stock Exchange continues to grow as it did in the first half of the year, the figure at the end of 2016 will be the highest in historical terms, surpassing the record of 2013, when $3.579 billion was recorded.

Panama: More "Missed Deadlines" in Stock Market

January 2016

A missed deadline has been missed on an issue of $4 million that was part of the restructuring of bond issues and securities made by the financial company La Generosa.

The restructuring of the financial company managed by businessman Jose Luis Ford failed to materialize and now the holders of bonds and securities issued by financial La Generosa will have to wait for the settlement of guarantees administered in a trust before they can recoup their investment.

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