Nov 2013 Financial News

Howai: More companies for Stock Exchange

Nov 21, 2013

FINANCE Minister Larry Howai says Government wants to double the number of companies listed on the Trinidad and Tobago Stock Exchange in the next five years. He noted this year they listed First Citizens shares and are also looking at the possibility of issuing more “at an appropriate time.”

They have also listed the CLICO Investment Fund and are looking at listing a number of new companies next year including recently acquired shares at Phoenix Park Gas Processors. “It will be the first energy based stock which will be on the local stock exchange,” he explained.

He said they were also looking at “introducing strategic investors in partnerships in a number of key companies” and eventually they would also want to list these on the stock exchange.

He noted the local stock market “had a very good year this year”. He reported it has grown by 15.7 percent, “a very positive rate of growth”, the value of stocks traded has increased by $1 billion and the volume of trades was up by more than 100 percent compared to last year.

“So there is a tremendous return of investments into the stock market that we seeing and I am looking forward that by the end of this year we will see a tremendous growth in the stock exchange,” he said.

He was contributing to Senate debate on the Insurance Bill on Tuesday at Tower D, International Waterfront Centre, Port-of-Spain. The bill has been referred to a Joint Select Committee.

He said they are seeking to ensure that they have a bill that is “very comprehensive, very solid and will act as a foundation for the development of this industry for years to come.” He noted they have also ensured it is practical and feasible and, where the information is available, to ensure regional harmonisation “in particular to the management and supervision of overseas subsidiaries, cross border supervision”.

“To ensure that we do not have the kind of contagion risks that occurred when the CL Financial Group melted down and in fact the Trinidad and Tobago Government had to provide quite substantial to the region and to insurance companies in the region to ensure that there was not a wider financial meltdown, even though today, given some of the weaknesses of the regional economies, I’m not quite sure we’ve fully staved off any risks that are inherent out there and the potential contagion risks the Trinidad and Tobago financial sector could face given the weaknesses of these economies in the region,” he said.

He noted in the legislation they have included the ability to harmonise the regulatory process with colleagues in the region and ensure there is proper cross border supervision of these financial institutions.


Source:
By JULIEN NEAVES
Newsday
Thursday November 21, 2013

http://www.newsday.co.tt/business/0,186795.html