Primary capital market operations registered $1.086 billion in the first quarter of 2012, while the secondary recorded $121.023 million in the same period.
There is now a high level of market liquidity, denoted by its trading volume during the first quarter of 2012: $ 1.227 billion, reports martesfinanciero.com. The public sector is predominant as the largest emitter.
"The public sector represents 39% of the movements. In other years the maximum performance was 20%," said Roberto Brenes, director of the BVP.
The increased presence of the official sector in the stock market is due to an issuance by the Republic of Panama, this is a trend that follows a program of internal public State debt through the Government.
"This country will never get an investment grade rating of A if it does not develop a capital market. Part of it is achieved by providing it with liquidity and, above all, creating a culture of investment", said Jose Abbo, vice president of finance at SFC stock exchange.
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Tax incentives need to be created in order for the private sector to become more involved in the stock market.
This is the opinion of some market participants, such as the Invercasa brokerage firm, who believe that the law governing the securities market is robust, but needs to be reformed in order to encourage private participation.
Plans are afoot to allow foreign companies and investors to buy and sell on the Panama Stock Exchange with the same ease offered by stock markets of developed countries.
In interview for Capital.com.pa by Marianela Palacios, the Deputy Minister of Finance of Panama Dario Espinosa, said that within the entity's work plan, one of the priorities will be the opening of the Panamanian capital market.
During the first six months of 2013 companies issued $637 million in corporate debt, a slower pace than 2012, as $3.07 billion was issued in the entirety of last year.
However it is expected that in the second half of 2013 emissions will increase to $1.694 billion, which would still represent a decline of 45% compared to 2012.
Despite a 44% drop in trading volume in October, the sector expects to finish 2009 with a 25% growth.
This was announced by Gerardo Argüello, who explained that they expect higher volume in the last two months of the year, because the Central Bank of Nicaragua will issue various securities.