Secondary market traded RD$8.7 billion last week
SANTO DOMINGO. Last week the secondary market for securities registered a major movement, compared to what went on the previous period.
According to the daily reports that are published by the Dominican Republic Stock Market (BVRD) between 2 and 6 June, the market showed transaction that added up to RD$8.701 billion, which represented a 3,111% increase in relation to the RD$270.9 million that were the total sales for securities during the 26 to 30 May period.
During the week there were 38 security negotiations and transactions. The total corresponded to special investment securities and to bonds, both issued by the Central Bank.
With the exception of one case, in all of the transactions the securities were sold at a price above face value, which reflects a large demand for the paper. The resulting earnings on these securities vary between 10.5% and 12.95% yearly. The interest rate on the emission is between 12% and 15.5%. All of the securities negotiated are in Dominican pesos.
Last Friday, for example, there was RD$51 million negotiated on the bond note of the Central Bank (Num. 220219) issued on 22 February 2014 and coming due on 22 February 2019, and at an interest rate of 12%. Nonetheless, the transaction was for RD$53.3 million, at a price of 101.1291, which sets earnings for the new holder at 11.7%.
The secondary securities market is where securities that have been emitted previously on the primary market are bought and sold.
During last week, the BCRD did not register security emissions on the primary market, which is where for the first time the issuers (private companies and public institutions) offer their new securities.
Category: DR News |