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London Stock Exchange to supply technology to Argentinian CSD

The London Stock Exchange (LSE) is to become the technology provider to Caja de Valores (CVSA), the Argentinian central securities depository (CSD). The two parties signed a partnership agreement ahead of the depository’s immediate priority which is to support the country’s new Bolsa & Mercados Argentinos (BM&A) exchange.

The deal means the LSE’s trading platform will shortly be rolled out in the country. MillenniumIT, the LSE’s technology arm, is the partner who will provide the capital markets technology and expertise to CVSA, which will then use it to support the new Argentinean exchange.

B&MA is a partnership between the Buenos Aires Stock Exchange and Merval, the association of Argentine brokers responsible for market operation in Buenos Aires. The joining of the two venues has been spurred on by Argentina’s Congress who last year approved a sweeping capital markets reform package.

Commenting on the deal, Ernesto Allaria, director of B&MA, said: “Selecting MillenniumIT as our technology provider offers B&MA significant opportunities to take advantage of more globally interconnected markets. This represents an important step forward for B&MA as well as the rest of Argentina’s capital markets.”

Source: Bobsguides, 01.08.2013

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Filed under: Argentina, Exchanges, Latin America, , , , , , ,

Latin America Exchanges: Colombia Stocks Lead

Colombia leads Latin American stocks in growth the past decade and last year, but Brazil remains the volume champion.

Colombia’s benchmark IGBC stock index grew by 927.9 percent the past decade. That was more than any other Latin American stock index and compares with a 9.3 percent decline in the Dow Jones Index in the same period, according to Economatica.

Colombia’s stock transactions also were the best performer in Latin America last year, according to a separate analysis from Economatica. The average value of transactions in Colombia fell by 2.3 percent in 2008, which was lower than all other countries in the region and compares with the total Latin America decline of a 13.5 percent.

Brazil’s Ibovespa index, which has been among the global leaders in recent years, grew by 301.3 percent in the ten year period.

Last year, Brazil’s exchanges posted an average of $2.4 billion in stock transactions, a decline of 13.6 percent compared with 2008, according to Economatica.

Brazilian companies — led by oil giant Petrobras, mining giant Vale and banking giant ItauUnibanco – dominated stock transactions in Latin America last year. Nine of the ten most traded stocks were from Brazilian companies. The other one was from Mexico-based America Movil, Latin America’s largest wireless operator.

Mexico’s IPC index grew by 350.5 percent in the ten year period. Last year, Mexico’s stock transactions averaged $440.1 million, a 13.9 percent decline.

The Caracas Stock Index (IBC) grew by 916.5 percent in the ten year period, but last year stocks traded in Venezuela saw their average daily value drop by 29.5 percent. That was the second-worst result in Latin America.

The worst performer last year was Argentina, where the value of average daily transactions fell by 54.5 percent. During the previous decade, the country’s Merval index increased 321.3 percent.
The Lima Stock Index (IGBVL) was among the leading growth winners in the past decade, with an increase of 671.8 percent. Last year, the average value of Peruvian stocks fell by 21 percent.
Chile’s IPSA index grew by 218.8 percent in the past decade. Last year, Chile’s daily average stock transactions fell by 3.6 percent, which was the second-best performance in Latin America, according to Economatica data.

Source: Latin Business Cronicle, 07.01.2010

The study took into account currency fluctuations in the main Latin American markets between December 31, 1999 and December 31, 2009, Efe reported.

The stock exchange with the greater profitability in the decade was Colombia’s, with a 927.9 percent increase, followed by Venezuela (916.5 percent), Peru (671.8 percent), Mexico (350.5 percent), Argentina (321.6 percent), Brazil (301.3 percent) and Chile (218.8 percent).

Source: El Universal, 07.01.2010

Filed under: Argentina, BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, Venezuela, , , , , , , , , , , , , ,

Argentina Stocke Exchange Calls for Lifting Capital Controls

— Argentina’s stock exchange called on the government to lift capital controls that caused it to become the only major Latin America market classified as “frontier,” adding the move may help lure $10 billion in foreign investment.

Requirements for international investors to deposit 30 percent of what they put in Argentina with the central bank for a year “have stopped making sense,” Adelmo Gabbi, the Buenos Aires stock exchange’s chairman, said yesterday in a speech.

Capital controls prompted MSCI Inc. to remove Argentina from its benchmark emerging-market index in June, assigning it the so-called frontier status along with the world’s least developed markets. The controls have helped Argentina avoid volatility, said President Cristina Fernandez de Kirchner.

“We have to seek a rule so that the inflow of funds won’t be speculative,” she said, without elaborating.

New York-based MSCI, which estimates its indexes are tracked by funds with $3 trillion, classifies its markets based on size, liquidity and economic development. Argentina’s demotion also followed Fernandez’s seizure of about $24 billion in assets held by private pension funds, the country’s biggest stockholders.

“We want to stop being the only country in the region that participates in the frontier index because we feel that we have more in common with Latin America than with Nigeria, Ghana and Kenya,” Gabbi said.

Merval’s Rally

Argentina’s Merval stock index has rallied 66 percent this year after last year’s 50 percent slump. It’s up 1.1 percent over the last 12 months. A return to emerging market status would bring back about $10 billion in foreign funds to the market, Gabbi said.

Argentina’s stock exchange had average daily trading volume of $13.5 million in the first five months of the year, according to Bloomberg data. The nation’s stocks have a combined market value of $493 billion.

While relaxing capital controls would be “a step in the right direction,” it wouldn’t be enough to bring back international investors who sold stocks on the government’s policies, said Greg Lesko, who helps manage $625 million as head of equity at Deltec Asset Management in New York.

“There’s still enough political risk in Argentina to keep most investors from getting terribly excited,” Lesko said today in a telephone interview. “It wouldn’t make a big difference to me because that’s not the biggest reason why I’m not invested there. The way the country’s being run is more of an issue.”

Colombia Restrictions

MSCI said in December it would keep Colombia classified as an emerging market after the country removed restrictions on foreign investment in its stock market. Colombia in September lifted requirements that foreigners deposit 50 percent of stock and convertible bond investments with the central bank for six months.

“The deposit requirement was imposed in 2005 and was one of the forces that allowed us to confront the brutal volatility of the markets during the crisis,” Fernandez responded yesterday in a speech at the Buenos Aires stock exchange.

Fernandez’s husband and predecessor Nestor Kirchner imposed deposit requirements in order to discourage speculators from investing in local markets after the country restructured about $104 billion in bonds.

The measure aimed to cap a rise in the peso that would make Argentine goods less competitive abroad. Argentina’s currency has weakened 10 percent against the U.S. dollar this year as other currencies in the region have strengthened.

Fernandez said yesterday that the arrival of funds aimed at increasing production and creating jobs in South America’s second-biggest economy may be excluded from restrictions.

Argentina’s benchmark Merval index rose 1.1 percent to 1,797.02, the biggest gainer among major Latin American benchmarks. Banco Macro SA, Argentina’s largest lender by market value, led the increase, rising 8.1 percent to 8.65 pesos.

Source: Bloomberg, 28.08.2009 by  Eliana Raszewski in Buenos Aires at eraszewski@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net

Filed under: Argentina, Colombia, Exchanges, Latin America, News, Risk Management, , , , , , , , , ,