Lack of confidence in region's markets

Published: Friday June 6, 2008

SOME investors do not trust the Caribbean's equity markets and former deputy governor of the Central Bank of Trinidad and Tobago Dr Terrence Farrell is taking initiative to improve investor confidence in the region.

The economist and former second in command at the bank from 1992 to 1995 said last week: "There is a lot of cynicism or scepticism on the part of investors about our stock market".

"People feel that it is inefficient, it is rigged. People feel there is undue influence by certain people. They just don't trust it."
He believes that mistrust in the capital markets stems from overall apprehension about Caribbean institutions.

Regulatory structure

As president of Business Insight Limited, an economic and financial consultancy based in Trinidad and Tobago, Farrell was behind the Caribbean Investor Conference 2008 that was organised by Business Insight at the Hyatt Regency Hotel, Port of Spain, Trinidad last week.

"The reason why in other places people are more confident about their market is because they feel there is a good strong regulatory structure that they understand and they know that if things go wrong there is somebody who can deal with the situation," he posited.

Farrell who took up the chief executive officer role at One Caribbean Media earlier this week is convinced that investor education about the Caribbean's capital markets would greatly improve their confidence.

And the investor conference would be taken to different Caribbean countries every year to stimulate discussion in regard, he said.


Source: Jamaica Observer
http://www.jamaicaobserver.com/magazines/Business/html/20080605T220000-0500_136432_OBS_LACK_OF_CONFIDENCE_IN_REGION_S_MARKETS.asp