Oct 2015 Financial News

Govt plans, encouraging

Oct 27, 2015

CHAIRMAN of the Trinidad and Tobago Stock Exchange (TTSE) Peter Clarke yesterday said the exchange was “particularly encouraged” by the statement by Finance Minister Colm Imbert that the Government intended to fill some of its budget gaps by a sale of assets programme among other things and said he hoped the minister would use the stock exchange to put some profitable State companies on the market to allow individuals and institutional investors to participate in the ownership of more State companies in the months and years ahead.

He said he would like to visit the minister and brief him about the facilities available at the exchange and assure him that the exchange was ready to facilitate and assist in whatever divestment plans the ministry may have. He made the comment as he welcomed the listing of 75,852,000 Class B shares in TTNGL, which were sold in an Initial Public Offering (IPO) between August 10 and September 9, 2015.

In a brief ceremony at the exchange to mark the formal listing of the shares, Clarke said that with the listing of the new shares, the “TTSE Index now includes a company which offers full exposure to the energy sector, something that is indeed necessary if investors are to view the index as representative of the performance of the Trinidad and Tobago economy.” He said the energy sector is the major driver of the economy and over the past five years had contributed 43 percent to the country’s Gross Domestic Product. “This listing provides an opportunity for all categories of investors to be part owners of a key contributor to our nation’s economy,” he said, adding that the total market capitalisation of the stock exchange was $112.39 billion as of October 23, 2015.

Clarke said when investors look at the various options available to them, where interest rates are so low and equities offer the potential for both capital appreciation and dividends. He observed that in most cases dividends offer higher rates than one could earn on fixed income instruments.

“So we are encouraged.

I think the key is to have attractive companies, new companies like Phoenix Park that people can participate in and diversify their portfolios with.” He said, “Generally IPOs and in particular, those that add diversification to the market, generate greater market activity. The exchange plays an essential role in the development of the local capital market and aims to foster and facilitate greater market activity leading to better liquidity and transparency.

In the midst of falling oil prices, the listing of NGL has stimulated market activity as seen in its first week of trading, with a total trade volume of 8.8 million shares and a trade value of $218.5 million.” He said this was about ten times greater than the activity of the last major listing, First Citizens Bank Limited during its first week of trading.

Source:
Verne Burnett
Newsday
Tuesday October 27, 2015

http://www.newsday.co.tt/business/0,219070.html