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.
Companies registered with the Superintendency of Securities and Exchange in Panama will have to comply with standards of good corporate governance.
The Superintendency of Securities (SMV) of Panama announced the topics that it has been working on with the Institute of Corporate Governance Panama (IGCP), to prepare companies selling products on the stock market to comply with the upcoming implementation of the Good Corporate Government, reported Critica.com.pa.
A reduction from 20% to 3% has been made on withholding tax on income from investments in securities traded on the local stock market.
From a statement issued by the Financial Supervisory Authority:
Recently, the Legislature approved a decree amending art. 158 of the Tax Code in order to decrease from 20% to 3% withholding tax to foreign persons or entities charged on income from investments in securities traded on the Stock Exchange in the Republic of El Salvador.
New legislation prevents operating as a stockbroker those entities who do not have a license issued by the Superintendency of Securities, among other changes.
In 2013, 11 agreements were approved, while so far this year five have been approved, which contemplate limits for exercising the office of broker or analyst. Examples include compatibility charges, the approval to apply for the license exams, exclusivity for a single entity represented, among other things.
Amendments to securities regulations are being prepared in order to allow local stock brokers to buying shares of listed companies in developed markets.
This change in regulations and operational infrastructure will give access to the purchase of shares of international companies listed on stock markets such as New York.
The National Stock Exchange will implement a system of mass placement of securities in order to encourage the registration of emissions from private companies and the arrival of more investors.
The strategy will focus on standardizing the securities that are issued in the primary market so that they can then be traded in the secondary market and in this way give them greater marketability and encourage the participation of more investors.
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.
The primary market grew by 37% and secondary by 34% in comparison to 2011.
"The stock exchange has driven growth in the primary, secondary and international markets, since these are the markets that strengthen the purpose of the exchange, which is to channel resources from investors to the productive projects", said Rolando Duarte, chairman of the Exchange.
Wealth creation at the individual level is key to the development of a country, and investment in securities is an effective way to do it.
During the forum held at the Universidad Latina in Panama on the stock market and the Democratization of Capital, there were two notable examples of success, not only for the companies involved, but also from the benefit of having a stock market culture, essential for a country’s inhabitants: