During the first three months of the year $263 million were traded in the stock market, 29.3% less than the amount traded in the same period last year.
So far this year, of the total trading volume, 85% was public sector emissions and 14.7% was securities issued by the private sector.
The Stock Exchange of Nicaragua "... recorded in March a trade volume of $39.9 million, representing a decrease of 31% compared to transactions in the same month last year."
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.
Grupo Invercasa has received authorization to create and manage funds in real estate and financial investment in the country and plans to raise $150 million over the next five years.
With the creation of the fund management company Invercasa the aim is to raise investment of $150 million in the first five years of operation, primarily through the model of real estate investment funds.
Between January and April transactions on the Stock Exchange of Nicaragua were registered worth $439 million, more than the $326 million traded in the same period in 2013.
Bonds issued by the Central Bank of Nicaragua are among the most attractive securities, with over $20 million in volumes traded in April alone, according to the Stock Exchange of Nicaragua (BVN).
The capital market in Nicaragua is offering more and better investments with better returns than months ago.
Yields paid on investments in debt securities in the Nicaraguan local market have attracted the interest of investors. In the first three months of the year 29% more stock market transactions were made than in the same period in 2013.
"The last placement of nearly 7.10 million (Ministry of Finance) had a 7.98% yield.
Estimates are of a market potential of $80 to $100 million for the development of real estate funds in the next two years.
The Invercasa Financial Group announced that it is negotiating with the Superintendency of Banks and Other Financial Institutions (Siboif) to open a real estate fund management company.
Statistics from Invercasa have recently indicated that in the last 18 months, since the firm entered the market of real estate investment, these funds represent 97% of all international transactions in Nicaragua, resulting in 70 domestic investors contributing 10 million dollars, with gains of 7.5%.
Initial expectations for the placement of shares in real estate funds worth $2 million was far surpassed, with a total of $9 million in the first year.
Laprensa.com.ni reports that "... the success of the FII is based on the fact that these pay a better percentage for the investment (from 6.5 to 8 percent a year), much more than is usually paid by the financial system on savings, but also offers fewer levels of risk for investors.
The abundant harvests in Brazil and Colombia have pushed down the price of the grain, which could reach less than $100 a quintal.
"This puts Nicaraguan coffee in a difficult position as it has long been the main export product of Nicaragua ..." reported Laprensa.com.ni.
According to the specialist in international markets at Invercasa Puesto de Bolsa, Raul Amador, the downward trend in prices will continue, because until a few days ago the average price per quintal of coffee was $109.10.
With a unit value of close to $41, the company has launched on the stock market 240,000 Non-Cumulative Preferred shares.
The structurer of the issuance is Invercasa, whose representatives described the event as "the first issuance of preferred shares in Nicaragua". The novelty of this story is that in practice, those buying shares will almost become owners (with limited rights) of a small part of the company.
In the first five months of supply, real estate investment funds sold $3.4 million in shares with a minimum participation of $5000.
The attractive interest rates offered and "the existence of a secondary market that allows the recovery of the investment when required, have made this an attractive investment instrument", reported Laprensa.com.ni.
Eduardo Ortega, general manager of Invercasa Puesto de Bolsa, says, "As a new product in the country, it was predicted that about five million dollars would be placed. But with the pace we are seeing, we projected that investment could reach up to about 10 million dollars."
Projections by the futures markets indicate that the price of coffee will only rebound in 2015, remaining low until then.
A low growth in demand (no more than 2%) and an increase in production in Brazil (50.8 million kilograms in 2012 to 50 million projected for the 2013 harvest), has led to a fall in price from the $313 earned per quintal in May 2011.
In July the operations of the Stock Exchange reported growth of 28% compared to same month in 2010.
Estimates for the end of 2011 show a 24% increase, on the basis that between January and August transactions totaled more than $465 million.
Elnuevodiario.com.ni reported statements by Edgar Gutierrez, general manager of brokerage firm Invercasa, "The growth is partly due to excess liquidity in the economy, issues by the Central Bank of Nicaragua (BCN in Spanish), negotiations that have occurred in the secondary markets on Compensation Payment Bonds (BPI) and also more activity in repurchases. "
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