Government
to float state companies
By
Curtis
Williams
Trinidad
Guardian
Port
Spain
Petroleumworld.com
08 14 06
Trade
and Industry Minister Ken Valley has hinted that
Government may place some of its state companies
on the stock exchange to boost a sluggish market.
Speaking
on the CNC3 Business Forum Valley acknowledged that
the local stock market appeared to be dormant and
that there were limited opportunities for investments.
He
said: “Prices are either stagnant or declining.
At the same time, interest rates are rising and
the issue is whether we will now see funds going
into deposits which would then, of course, suggest
higher levels of liquidity in the system and in
this environment, I think there is need to have
more shares coming onto the market, and that perhaps
Government needs to look at bringing some of its
state companies onto the market as quickly as possible.
Otherwise, we may have more portfolio investments
leaving, in terms of investments, outside the country.”
Valley
said without options to invest in the stock market,
people would then invest in real estate, leading
to the price of property continuing to rise.
He
said last year the stock exchange went through a
correction after the Central Bank intervened and
said with the levels of liquidity in the system
and the number of investment opportunities available
there was definitely a “mismatch.”
Valley
said Government had a policy position of widening
and deepening the stock exchange.
He
said: “Government sees an obligation to build
the capital market. There are about 30 shares on
the market and there is a policy position to double
the number of stocks on the market in a specific
period. I think you are right. Powergen may qualify
to be taken to the market as early as possible.
Trinidad Guardian
Saturday 5th August, 2006
Copyright
©2006 Trinidad Guardian. All Rights Reserved.
