Investors avoiding stock market now

Published: Tuesday August 18, 2008

NOT A SINGLE SHARE was traded on the Barbados Stock Exchange regular market last Monday and one broker says investors were avoiding stock investments now.

"Most of the money seems to be going to fixed income paper," a Royal Bank of Canada (RBC) broker told BARBADOS BUSINESS AUTHORITY.

The broker observed that two $100 million treasury notes issued by the Central Bank of Barbados earlier this year were oversubscribed, the last one snapped up within 24 hours of issue.

"That is where people seem to be interested right now, the fixed income; there is no depreciation in the capital and they are guaranteed an income."

BSE officials confirmed that Friday, August 8, was also a day of no trading on the regular market and there were four other such days in 2008.

"The market is very, very flat right now . . . and very little money is coming into the stock market," the RBC broker stressed.

"Every day I'm getting calls from people with a lot of money asking what instruments are available rather than shares . . . ."

He reasoned that uncertain economic conditions had put investors into a caution mode.

"People seem to want to watch and see how the rest of the year will pan out, where oil prices are going to land us," the official noted.

The broker said the expected money generated by recent takeovers and mergers had not materialised.


Source: Nation Newspapers
http://www.nationnews.com/story/300662673669105.php