business

Local stock prices fall

The Panama Stock Exchange has not experienced the wild swings that has impacted other financial markets, but it has seen a slight downturn recently.

Through September, $1.5 billion worth of shares were traded on the exchange, almost a 40 percent increase from 2007.

The secondary market was also active, with transactions increasing 54.9 percent.

The market closed at 255.71 points on Sept. 30, but fell to 243.34 points at Friday's close.

With regard to the drop this month, Multibank Vice President Roberto Yau said that he thinks it is due to “an increase in the perception of risk and the streamlining of the relationship between supply and demand.”

The Panamanian market, he said, is not as active as others in the region, and the low was to be expected sooner or later, as is the trend in the global arena.

But he added that the Panamanian exchange may be seen as a “safe haven” for investors who are looking for stability.

“The soundness of the banking system is helping the situation in Panama,” Yau said. “The situation here is not as drastic as we are seeing in other countries.”

Felipe Chapman, the former head of the Panamanian stock exchange, said the drop is not related to the poor performance of the companies.

“There is no rational justification for a downward movement of these prices, but that does not mean they are not exposed to the frenzy of what is happening at the moment on stock exchanges worldwide,” Chapman said.