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Financial News

Oct 2009 Financial News

Stock taking Is it time to buy again?

Oct 21, 2009

It has been a tough year for stock market investors.

But now, they may finally have a reason to breathe a sigh of relief.

While it was evident from the slowdown of trading and the uncertainty expressed by investors that last year was a tough year for the local equity market, a glimmer of hope seems to be re-emerging and activity has begun to pick up.

Experts say the improving statistics from developed economies and stabilising commodity prices are also weighing in on the confidence levels of investors and signalling that the end of the worse may be nigh.

From a low of 776.06 points on July 23, the local stock index surged to 788.89 by the last week in September, Caribbean Money Market Brokers analyst Christiane Salloum noted recently.

While the gains on the All T&T Index have been small compared to the losses experienced in the three previous quarters the local stock

market, like many

others around the world, may be working its way back to normalcy.

Wayne Dass, chief executive of Caribbean Information and Credit Rating Services Ltd said: "Things are settling down, people feel like they have seen the worse and are ready to re-enter the market."

Adding to news about confidence is the fact that the region has shown it is holding up against its own share of financial woes.

One financial source at a State enterprise said last week: "The bailout of CL Financial, one of the region's largest conglomerates, helped. It showed Government was committed to facilitating a healthy financial market, despite the shake-ups. Having Government support for the growth of the financial sector is always a good thing."

There is also the anticipation that by next year most of the region's economies will return to growth.

In a recent financial commentary piece, published earlier this month, Salloum said in a Business Express column: "Of additional significance to local trading is the announcement of the intention to cross list BCB Holdings (BCBH), a financial services company (which is currently listed on the London Stock Exchange) on to the Trinidad and Tobago Stock Exchange by October 2009, offering four million shares to local and regional investors."

General manager of the Trinidad and Tobago Stock Exchange Wain Iton has said this is a welcome move and will help deepen the local market which is in need of additional listings.

While the mood is generally optimistic and it is showing on the local equity market, some like chief economist at the Central Bank, Alvin Hilaire, have warned that while developed countries may be past the global economic downturn, there could be another period of slowdown since international credit markets are still weak.

Despite the returning normalcy that is being seen in some pockets of global economies, Dass also believes caution is not to be thrown to the wind just yet and investors and creditors must keep a watchful eye out for further developments in the global economy.


Source:
Aretha Welch
Trinidad Express
Wednesday, October 21st 2009

http://www.trinidadexpress.com/index.pl/article_business_mag?id=161546727