In the first eight months of this year, transactions registered on the Nicaraguan Stock Exchange totaled $421 million, 122% more than reported for the same period in 2019.
According to figures from the Nicaraguan Stock Exchange (BDVN), between January and August 2019 and the same period in 2020, the amount of transactions in the stock market increased by $231 million, from $190 million to $421 million.
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.
In the stock market, $43 million in stock documents were traded during January, which is 123% more than the amount reported for the same month in 2018, contrasting with the negative variations that have been registered since the political crisis began in April 2018.
The figures from the Nicaraguan Stock Exchange show that between January 2019 and the same month in 2020, stock market negotiations grew by $24 million, from $19 million to $43 million.
Arguing that the country's situation is complex and that the need for greater liquidity to meet its immediate responsibilities has had consequences on its funding sources, Factoring S.A. announced its exit from the local stock market.
Managers of the financial institution reported that the company began operations in 1998 and in 2011 was authorized by the Superintendence of Banks and Other Financial Institutions (Siboif), to make issues in the stock market.
During the last three months of last year, $3.324 million was traded on the stock market, far surpassing the $558 million recorded in the same period in 2017.
During the fourth quarter, the most dynamic market was the primary, where 83.9% of the total volume was traded, and the amount traded in the fourth quarter of 2018 represented a little more than 6 times the value traded during the same period in 2017, reports the Central Bank of Nicaragua (BCN).
From June to November 2018, transactions registered on the Nicaraguan Stock Exchange totaled $316 million, 57% less than reported in the same months of 2017.
According to figures from the Nicaraguan Stock Exchange (BDVN), from January to May 2018, positive interannual variations were reported in the traded amount, however, for the period from June to November a downward trend has been registered.
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.
In 2017, $2.494 billion was traded on the stock market, 34% more than the sum total of operations last year.
The Central Bank of Nicaragua reported that last year they observed in the stock market " ... the predominance of the national currency, representing almost 88% of total trades in different markets."
Between January and November, transactions on the Stock Exchange totaled $1.562 billion, accumulating an 11% growth compared to the same period in 2016.
Gerardo Argüello, general manager of the National Securities Exchange (BVN), told Elnuevodiario.com.ni that "... growth in the stock market is widespread, but he admits that the issues by the Central Bank of Nicaragua and the public sector have encouraged thisdynamism in the stock market."
In the first eight months of the year, the volume traded in the primary market grew by almost twice as much as in the same period in 2016, driven by growing product diversification and increased investor demand.
Growth in trading in both the primary and secondary market is due mainly to a greater diversification of financial instruments, attractive returns and a growing interest from investors and companies in the stock market both in finding investment options and in seeking financing.
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.
Between January and March $382 million in securities transactions were traded, 45% more than the amount recorded in the same period in 2015.
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.
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.
In 2015 more than $1.2 billion in securities were traded on the stock exchange, a 21% increase compared to 2014, driven by trade in government securities.
Short-term operations, particularly negotiations on the repo market, which led movements in the Nicaraguan Stock Exchange, increased by 37% compared to transactions of these instruments in 2014.
An announcement has been made that in April the first short term mutual fund will start operations in the local market, which will require a minimum of $1,000.
Initially the fund administered by Invercasa will be in cordobas and investment in dollars will be enabled later, with a feature that allows for short-term investments.
Emiliano Maranhao, president of Invercasa Sociedad Administradora de Fondos de Inversión, said "...We expect yields of 2% higher than the average percentage, for example, than what is paid on savings accounts, current accounts do not have interest rates. In this way, 15% of total deposits in the country could be captured, which will favor an industry with strong growth. "
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