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.
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.
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."
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.
For the first time in nine years, the Federal Reserve has raised the benchmark interest rate, by 0.25%, starting off a process of a gradual adjustment which will make credit more expensive.
After seven years of interest rates at historical lows, signs of recovery in the US economy have led the Federal Reserve to announce the first upward adjustment in the federal funds rate, the main reference rate for structuring interest rates in the United States and around the world.
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.
Having for years funded public spending with resources from the Venezuelan government, the country now plans to issue government bonds abroad.
The stable economic growth that Nicaragua has achieved in recent years has enabled the country to improve its financial position and has impacted positively on the country's risk perception on the part of international investors, giving it an important advantage in the event of a possible bond debt issue on the international market.
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 Nicaraguan financial company Finnancia Credit is to issue commercial securities in the amount of $5 million on the Panamanian market.
The Negotiable Commercial Securities (VCN by their initials in Spanish) will be issued in three series with terms of one year and will have an interest rate of 7% per annum for the first series, which was released on April 30 in the amount of $2 million.
The National Securities Commission has ordered the reorganization of the leading brokerage house in Panama, to ensure "the best defense of the interests of investors."
(UPDATE: On August 8th, 2011, the Panamanian Securities Commission resolved that the "reorganization process for Thales Securities was successfully completed and returned the administration and control of the company back to its shareholders and directors”.)
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