Mar 2007 Financial News

Analysts hope Barbados' stock market will rebound in 2007

Mar 20, 2007

Barbados' stock market officials anticipate a rebound by the Barbados Stock Exchange in 2007. The optimism is contained in the BSE's 2006 year end report on share trading and will be remembered as a challenging one for the BSE.

The performance of the market for 2003, 2004 and to a lesser extent 2005 gave the impression that rising prices and indices are to be expected.

Unfortunately, this is an unrealistic expectation and when the market declines, as it did in 2006, it is necessary to remember the basic tenets of equity investing.

The BSE said that these include recognition that volatility is a natural condition of any market and that long term results are not earned in a straight line. However, the general movement of the market tends to be in an upward direction.

"It is hoped, that like the Jamaica Stock Exchange and the Trinidad and Tobago Stock Exchange, which suffered significant declines for most of 2006 but rebounded to moderate performances based on a turnaround late in the year, that the Barbados market will similarly rebound in 2007," the officials said in their 2006 report.

The BSE said that this year will be a significant one for the Caribbean region, as the eyes of the world turn its attention to our hosting of Cricket World Cup 2007.

"Similarly, the year promises to be monumental for the exchanges of the region," the BSE said.

"This is because the first phase of a vision, established some 15 years ago, of a regional exchange begins to take shape in the form of the Caribbean Exchange Network,"it said, while noting that the technical framework is now in place for the Stock Exchanges of Barbados, Jamaica and Trinidad and Tobago to be linked together to facilitate a single capital market.

"In addition, several rules and agreements have been drafted to ensure that certain regulatory issues are regularized. At this time, these agreements and rules are now being reviewed by the Securities Commissions of the respective jurisdictions."

With the conclusion of the regulatory review, a new era in the regional capital markets will commence, with brokers being able to seamlessly buy and sell shares directly on another regional exchange via the Caribbean Regional Exchange.

Another improvement that can be expected in 2007 is the availability of information on listed companies.

According to BSE, "We are currently in the process of redeveloping our website, and upon completion, we will be able to provide a greater depth of information online, so that investors and analysts alike will be able to have greater information at their disposal to make more informed decisions." There are also plans in place to increase the intensity of our educational programmes for 2007.

While the panel discussions are often well attended, the BSE officials believe that it is necessary to diversify the location of its education panel discussions from the traditional location of the Grande Salle of the Central Bank, in order to broaden the scope of individuals that we reach. Ç

The Barbados Advocate
Monday, March 20, 2007.
http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=30358