DESPITE experiencing an average annual decrease of 4% over the last five years, the market capitalisation of the Trinidad and Tobago dollar equity and mutual fund markets amounted to $122.53 billion as of December 2023, Minister in the Ministry of Finance Brian Manning has said.
“In this regard, the market continues to exhibit signs of growth, with the number of trades and traded volume in the Secondary Market increasing by 81.65% and 47.11%, respectively,” Manning said.
“The equity market remains the largest segment of our local securities market, measured by the variable Market Capitalisation, which serves as an indicator of the securities market’s contribution to the economy,” Manning said yesterday as he delivered the feature address at the T&T Securities and Exchange Commission’s (TTSEC) Strategic Stakeholder Engagement Forum at the Hyatt Regency (Trinidad) hotel at Wrightson Road, Port of Spain.
Manning said as the securities market continues to evolve, so will job creation, opportunities and economic resilience.
“Over the past five years, the securities industry has witnessed significant growth in employment, with registered representatives experiencing an 84% increase in numbers. Moreover, confidence in the stock market is likely to increase investments in listed companies, leading to further job creation and economic prosperity,” he said.
He added that the securities market serves as a “bulwark against disruptions” in times of economic uncertainty and volatility, providing investors with opportunities to diversify their portfolios and mitigate risks.
Manning said the TTSEC is developing comprehensive data protection and cybersecurity guidelines to enhance its resilience against cyberattacks and insider threats.
“To this end, the TTSEC remains actively engaged in the Joint Fintech Steering Committee, a collaborative initiative among supervisory authorities. This committee oversees the management of a joint regulatory Innovation Hub and is dedicated to the development of a Virtual Asset (VA) and Virtual Asset Service Provider (VASP) policy.”
He explained that this policy will play a pivotal role in identifying regulatory gaps concerning VA and VASPs and recommending optimal approaches for jurisdictional oversight.
Manning said the TTSEC is committed to supporting access to capital for small to medium enterprises (SMEs) through Initial Public Offerings (IPOs), secondary markets, private placements, venture capital and issuing more shares or debt securities, since they are the “lifeblood of economic development”.
He said there are 33 listed companies, including two SMEs, and 14 bonds.
“By nurturing an environment conducive to capital formation and innovation, we empower SMEs to thrive and contribute to our nation’s economic expansion. At present, the total value of bond issuances listed with the Stock Exchange stands at $19 billion,” he said.
Manning said there are other investment options such as derivates, mutual funds or collective investment schemes (CIS) and certificates of participation, noting: “As of December 2023, the assets under management of the CIS market totalled $62.7 billion.”
The theme of yesterday’s forum was Invigorating the T&T Capital Market.
“Today’s forum is dedicated to collaboration. We aim to work closely with you, our primary stakeholders, to jointly consider the key strengths, weaknesses, opportunities and threats facing our capital market. This collaborative approach is essential for identifying and implementing strategies that will enhance the market’s performance and sustainability,” TTSEC chairman Imtiaz Hosein said.
“Creating growth in the capital markets involves fostering an environment that encourages investment, innovation, and liquidity, while also mitigating risks and ensuring regulatory compliance. This growth can be achieved through various strategies and initiatives aimed at attracting investors, promoting market efficiency, and expanding access to capital. Our goal is to create a dynamic and inclusive market where all participants can thrive,” he said.
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