Positive first quarter financial results in the Dominican Republic

The closing of the first quarter of 2017 posted notable growth in trades through the Dominican Securities Exchange, according to the country’s Diario Libre newspaper.

As of 31 April, trade volume in the BVRD’s various markets and managed mechanisms (including the Ministry of Finance’s Market Creators Program) topped RD$127.9 billion – a 62% growth on the same period in 2016, where the markets reached RD$78.9.0 billion.

Newspaper reports say: “It’s important to emphasise from the first quarter of the year the placement in the primary market of issues 11 to 20 of the corporate bonds of the Dominican Power Partners (DPP), which is part of the AES Dominicana group.”

On this issue, the BVRD stressed that it placed securities in the amount of US$50 million in a single day, “achieving the demand by investors of US$94.08 million, which was almost double that offered to the public, denoting the investment appetite for that instrument.”

In that period, the issue by Banco Popular Dominicano was RD$2 billion, Motor Credit was RD$100 million, Consorcio Remix was US$2 million and the increase of the first issuance of JMMB Closed Real Estate Investment Fund was US$3 million.

“According to a report by the Dominican Republic Stock Exchange, in April, the primary fixed-income market had the placement of the fifth issue of the Corporate Bond Issue Program of Alpha Sociedad de Valores, SA Post of Exchange in the amount of RD$200 million; while the primary equity market had the increase of the Fund of Investment Closed Fixed Income Pay Recurrente Popular for an amount of RD$200 million and of the Closed Investment Fund Capable Fixed Income Popular, also for an amount of RD$200 million,” the outlet said.

Despite all this growth in the Dominican Republic’s securities market, José Michelén, CEO at ALPHA Valores, warns that it wouldn’t be sustainable in the long term if the regulation isn’t issued.