Mar 2010 Financial News

BSE stance cautious

Mar 22, 2010

CAUTIOUS OPTIMISM. This appears to be the approach adopted by the Barbados Stock Exchange (BSE) in light of its negative performance in 2009 and the signs of recovery shown on the international exchanges.

That was the BSE's analysis in its trading report for 2009, released only last week, which said that while the performance of international indices provided optimism about the market, it is necessary to temper such optimism with caution.

"It must be taken into account that there is still a great deal of uncertainty over the recovery of many of the major economies internationally. Questions have been asked whether the improvements seen are sustainable in the long-term," the report noted.

This is critical, since without sustained improvement in the overall economic climate of countries, companies and ultimately the various indices will be under pressure to maintain positive returns. Furthermore, an exchange is subject to the environment in which it operates," it pointed out.

Challenging year

The BSE noted that 2009 was a challenging year for the exchange as a negative index performance combined with significant decline in trading activity.

However, according to the BSE report, such was experienced throughout the region. There was a material decline in trading activity on both the Jamaica Stock Exchange and the Trinidad and Tobago Stock Exchange.

The BSE also noted that in Barbados, as stated in the Central Bank review of the economy for 2008, the country's economic recovery was closely linked to the rebounding of our major partners in North American and European tourism markets. (SB)


Source:
Nation News
Monday March 22, 2010

http://www.nationnews.com/news/business/Cautious-approach-LEAD-copy-for-web