The impact of the coronavirus crisis on the financial sector in Central America is expected to be felt mainly in services related to stock brokerage and investment advice, where a drop is expected.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
The National Stock Exchange received a request for authorization of a new stock exchange post, which would be called Iberoamérica Capital, Puesto de Bolsa.
In a press release on 6 March, the National Stock Exchange explained that in the coming "... 10 working days, counting from the working day following this statement, any observation on the managers, shareholders, administrators or legal representatives that could evidence the non-fulfillment of the requirements of honorability established by the regulations can be received."
The new tax reform proposal being discussed in Costa Rica raises capital gains tax from 8% to 15%, and also excludes recognising as a debt deposits made by issuers in the securities market.
In the view of the National Stock Exchange (BNV), not recognizing deposits made in the stock market as debt leaves it at a clear disadvantage, compared to banks, as a source of financing for companies.Not only does it compromise access to investors' savings, it also significantly limits companies and individuals investment options.
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.
Establishment Labs Holdings, dedicated to the manufacture of breast implants, issued $66 million in shares on its first day of trading on the Nasdaq stock exchange, in the US.
Representatives of the company reported that through the procedure called "pricing", last Wednesday the company sold 3,175,277 shares to investorsat a unit price of $18 dollars.
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.
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.
The brokerage Scotia Valores, a subsidiary of Scotiabank, has announced its deregistration from the National Stock Exchange and its exit from the local stock market.
Scotia Valores, a subsidiary of Scotiabank, will stop operating as part of a strategic decision by the Canadian group in Costa Rica, where it will focus on developing its banking business further.
The National Recycling Strategy announced by the administration Solis contemplates the implementation of a virtual stock exchange in which companies from different sectors can sell waste materials.
The initiative aims to give value to industrial and waste materials that can be reused as raw materials in different productive activities.
Nacion.com reported that "...This is a digital platform where users, mainly companies, may offer waste and, likewise, seek waste materials that could serve as inputs for their respective activities. The goal, according to the official document, is to 'boost the supply and demand of waste in a practical, user-friendly and simple manner'. "
The market regulator is preparing rules for a new type of short-term investment fund, which will be available before July.
The Superintendency of Securities (Sugeval) in Costa Rica announced that it will add to its portfolio an investment fund focused on very short term securities which are low risk and high liquidity, reported El financierocr.com. This new instrument will be approved in the first half of 2016.
The Superintendency of Securities is preparing for 2016 two new regulations and other reforms already in place to attract more investors.
The regulations relate to Mediation and Complementary and Venture Capital Activities, and reforms to the Regulations on Management Companies and Investment Funds, Regulation of Exchanges, the Custody Rules and Regulations on Corporate Governance.
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.
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.
Trading in 2015 surpassed the amount registered in 2014 by 7%, and the primary market grew by 6%, recording transactions for $8.272 million.
The stock market in Costa Rica has still not captivated the private sector, which mostly prefers to seek financing in the country's banking system or from abroad, before resorting to registering debt or share issuances in the local market.
The company Vidriera Centroamericana SA will be taking out a bank loan to pay its corporate bonds listed on the stock market and is disenrolling as an issuer of public shares.
The reason behind the decision to leave the ailing Costa Rican stock market is that corporate debt bonds that the company issued in 2008 were no longer"... trading at an attractive market rate." Given this, the company chose to seek bank financing rather than stocks to settle its debts.
Public consultation is being undertaken for the reform the regulation of Market Makers, with which it is intended to attract more stock brokers to the program to provide more liquidity to the market and stabilize prices of securities.
This reform also seeks to establish a reference price, a guarantee of "... minimum level of liquidity for emissions with little market presence "and amend the rules that are in effect, with the aim of improving the conditions for brokerage firms. It is expected that this project will be executed before the end of the year.
The company has applied for deregistration as an issuer of local stock on the market and will be accessing cheaper forms of financing in overseas markets.
The Britt Group has deregistered as an authorized issuer of publicly offered securities in the Costa Rican stock market, because the company wishes to seek financing in foreign markets which have lower interest rates and better costs.