Jan 2007 Financial News

Crime increase expected to hamper stock market

Jan 19, 2007

CRIME, increased Government spending and hgh inflation are expected to hamper returns on the local stock market this year.

This was the view of industry experts speaking yesterday at CMMB's "Stock Market Trend 2007" seminar at the Crowne Plaza Hotel, Port of Spain.

Despite strong economic growth and a projected average of ten per cent growth on the market this year, CMMB Securities managing director Robert Mayers said "there are some dark clouds on the horizon".

Stockbrokers maintained that 2007 would be a good year to invest in the stock market, especially for first time investors.

They pointed out though that there were many occurrences in the economy which could impact negatively on the stock market.

"We are seeing the dollar bobbing and weaving on a daily basis, inflation is out of control, interest rates are being forced upward by Central Bank that can find no solutions to this monetary policy framework and the effects of this are being manifested in very unpleasant ways," Mayers said.

Ian Narine, managing director, Republic Securities, that crime and a general election this year could affect the exchange as some investors may not have confidence to invest.

Subhas Ramkhelawan, managing director, Bourse Brokers said that in an election year Government expenditure was usually high and it would continue to exacerbate the current situation with inflation.

Source:
Driselle Ramjohn
The Trinidad Express
Friday 19th Janaury, 2007

http://www.trinidadexpress.com/index.pl/article_business?id=161085238