QUARTERLY REPORT

Transcription

1 QUARTERLY REPORT

2 Contents This is our, for people and companies interested in learning more about the Stock Market in Paraguay and its constant development. We appreciate your interest and hope you find the report useful and informative. New listed and delisted companies...2 What is a Futures Contract?...3 Securities Issues...4 Statistics...5 Relevant news...12 Interest rates

3 New listed companies Name: Inter-American Investment Corporation Sector: Finance Ticker: CII Address: 4616 Quesada St., 1 st Floor, Asunción Phone: (595 21) iicmail@iadb.org; iccinvestors@iabd.org Web: Delisted Companies Name: HILAGRO S.A.E. Sector: Manufacture. Ticker: HIL Address: 815 DEFENSORES DEL CHACO Ave. Fernando de la Mora Phone: (595-21) ; (0528) / hilagro@hilagro.com.py Web: 2

4 Futures Contracts Financial derivatives have become an essential instrument in the toolkit of finance professionals. Future contracts are financial derivatives that were designed with the aim of hedging against price uncertainty. What is a Futures Contract? A futures contract is an agreement to buy or sell a given quantity of an underlying asset at a given date and price 1. The asset can be tangible (like commodities) or financial (currencies, bonds and indexes). A crucial aspect of the futures contracts is that the involved parties not always are interested in delivering the assets. Who are the main participants? There are two types of participants in futures markets 2 : Hedgers and Speculators. Hedgers buy or sell contracts seeking protection from a price increase of an asset. Speculators buy or sell contracts expecting to profit from prices changes in the short term. Both hedgers and speculators can take short (sell) or long (buy) positions. Hedgers take long positions looking for protection from an increase in prices, and take short positions looking for protection from a decrease in prices. Speculators take long positions expect the price of the underlying asset to increase, and take short positions when they are expecting the price to drop. In both cases, speculators do not want to receive or deliver the assets; rather they want to exploit the risks associated with price volatility in futures markets. Future markets require that the participants open a margin account, with an initial margin deposit required to operate. This margin can be deposited in cash or in certain securities accepted by the exchange in which they will operate. This margin is usually a percentage of the market value of the contract. Generally speaking, in futures markets, the participants don not seek to deliver or receive the underlying assets, and most operations offset before their maturity. All that a participant needs to close a position is to take the opposite contract with the same size. Even hedgers close their positions before maturity and then operate in the spot market. What is the difference between futures and forwards? While both products are agreements to buy or sell a given quantity of an asset, at given time and price, they differ in some aspects. Futures are standardized contracts traded in organized exchanges. They are more liquid and a participant can close their position by making an offsetting operation. On the other hand, forwards are contracts traded OTC, with terms (quantity, price and maturity) agreed between the parties, which usually are financial institutions. 1 HULL, JOHN C. Fundamentals of Futures and Options Markets, 6th edition ESTRADA, JAVIER. Finance in a Nutshell, PEARSON EDUCATION,

5 Securities Issues Fixed income issues in the first quarter totaled USD ,20. Stocks issues totaled USD ,62 First quarter issuances detailed below. First Quarter Issues in domestic currency ISIN Company Security Interest rate Payment Maturity Total Issued PYLCR07F7481 LC RISK MANAGEMENT S.A.E.C.A. Bond 13,75% Quarterly 05/05/ PYWIS01F7503 WISDOM PRODUCT S.A.E.C.A. Bond 13,00% Quarterly 08/03/ PYWIS02F7510 WISDOM PRODUCT S.A.E.C.A. Bond 14,00% Quarterly 08/03/ PYWIS03F7543 WISDOM PRODUCT S.A.E.C.A. Bond 12,50% Quarterly 24/09/ PYWIS04F7559 WISDOM PRODUCT S.A.E.C.A. Bond 13,50% Quarterly 23/09/ PYIBI01F7575 IZAGUIRRE BARRAIL INVERSORA S.A.E.C.A. Bond 13,00% Quarterly 02/04/ PYIBI02F7590 IZAGUIRRE BARRAIL INVERSORA S.A.E.C.A. Bond 14,00% Quarterly 31/05/ PYIBI03F7607 IZAGUIRRE BARRAIL INVERSORA S.A.E.C.A. Bond 14,75% Quarterly 28/09/ PYIBI04F7614 IZAGUIRRE BARRAIL INVERSORA S.A.E.C.A. Bond 15,00% Quarterly 28/03/ First Quarter Issues in USD ISIN Company Security Interest rate Payment Maturity Total Issued PYFRI10F7355 FRIGORIFICO CONCEPCION S.A. Bono 8,50% Variable 28/05/ PYFRI11F7362 FRIGORIFICO CONCEPCION S.A. Bono 9,50% Variable 26/05/ PYFRI12F7494 FRIGORIFICO CONCEPCION S.A. Bono 8,90% Quarterly 20/02/ PYTAP11F7523 TAPE RUVICHA S.A.E.C.A. Bono 8,25% Quarterly 20/09/ PYTAP12F7530 TAPE RUVICHA S.A.E.C.A. Bono 8,50% Quarterly 27/03/ Stocks registered in the 1st Quarter Company Class Quantity Total DATA SYSTEMS S.A.E.C.A. Common Stocks. Multiple Votes DATA SYSTEMS S.A.E.C.A. Common Stocks DATA SYSTEMS S.A.E.C.A. Preferred Stocks IBI S.A.E.C.A. Common Stocks

6 Statistics Trading volume USD millions 591,1 468,4 193,3 123,3 98,2 138,9 128,0 68, Trading volume in the first quarter was USD Compared with the first quarter of 2016, it represents a decrease of 20%. USD millions 90,00 80,00 70,00 60,00 50,00 40,00 30,00 20,00 10,00-84,22 mar-16 68,75 mar-17 5

7 Share percentage by market Primary 24% Secondary 76% Secondary market in the first quarter represented a 76% of total operations. Secondary Market Trading Volume Secondary market trading in the first quarter totaled USD ,45. USD Millions 307,0 175,3 16,7 9,6 20,4 29,4 62,1 52,

8 Trading Share Percentage by Income Type Fixed income trading represented 75% of total operations, Stocks 14% and Repos 11%. Repo 11% Variable 14% Fixed Income 75% Trading Share Percentage by Currency PYG 53% USD 47% 7

9 Trading Share Percentage by Security Corporate debt and subordinated bonds were the most traded securities during the first quarter, with a share of 34% and 31% respectively. Trusts Bonds 4% Stocks 14% Financial Bonds 5% Corporate Bonds 34% Subordinated Bonds 31% Public Bonds 12% Trading volume by company Company Volume USD % VISION BANCO S.A.E.C.A ,36% MINISTERIO DE HACIENDA ,56% FRIGORIFICO CONCEPCION S.A ,12% BANCO BILBAO VIZCAYA ARGENTARIA PARAGUAY S.A ,25% WISDOM PRODUCT S.A.E.C.A ,34% BANCO CONTINENTAL S.A.E.C.A ,17% TAPE RUVICHA S.A.E.C.A ,99% FINEXPAR S.A.E.C.A ,54% BANCO ATLAS S.A ,91% LC RISK MANAGEMENT S.A.E.C.A ,21% FIDEICOMISO IRREVOCABLE DE TITULARIZACION DE FLUJOS FUTUROS DE CAJA Y ACTIVOS CITYMARKET A ,16% BANCO REGIONAL S.A.E.C.A ,39% GRUPO INTERNACIONAL DE FINANZAS S.A.E.C.A ,00% COLONIZADORA SAN AGUSTIN S.A.E.C.A ,44% INNOVARE S.A.E.C.A ,38% RIEDER & CÍA. S.A.C.I ,17% ELECTROBAN S.A ,05% 8

10 BANCO ITAÚ PARAGUAY S.A ,73% BLUE DESIGN S.A.E ,60% BIEDERMANN PUBLICIDAD S.A ,56% BANCO AMAMBAY S.A ,42% SUDAMERIS BANK S.A.E.C.A ,35% GAS CORONA S.A.E.C.A ,30% EMSA INMOBILIARIA S.A ,28% FIDEICOMISO LA SUSANA ,26% AUTOMOTORES Y MAQUINARIA S.A.E.C.A ,21% TRACTOPAR S.A ,21% FIDEICOMISO CSA ,21% BEPSA DEL PARAGUAY S.A.E.C.A ,18% MUNICIPALIDAD DE CIUDAD DEL ESTE ,12% IZAGUIRRE BARRAIL INVERSORA S.A.E.C.A ,12% FIDEICOMISO STILO HOGAR ,08% FINANCIERA EL COMERCIO S.A.E.C.A ,05% MUNICIPALIDAD DE ASUNCIÓN ,05% FIDEICOMISO DP INTERNACIONAL S.A ,05% CREDICENTRO S.A.E.C.A ,05% CASA CENTRO S.A.E.C.A ,04% KUROSU & CÍA. S.A ,02% ALEMÁN PARAGUAYO CANADIENSE S.A. (ALPACASA) ,02% DATA SYSTEMS S.A.E.C.A ,02% INVERFIN S.A.E.C.A ,00% COMFAR S.A.E.C.A ,00% MUNICIPALIDAD DE FERNANDO DE LA MORA ,00% SALLUSTRO & CÍA. S.A ,00%. 9

11 10 Most traded bonds Company Volume % 1 VISION BANCO S.A.E.C.A ,5% 2 MINISTERIO DE HACIENDA ,1% 3 BANCO BILBAO VIZCAYA ARGENTARIA PARAGUAY S.A ,1% 4 BANCO CONTINENTAL S.A.E.C.A ,8% 5 FINEXPAR S.A.E.C.A ,9% 6 BANCO ATLAS S.A ,1% 7 FRIGORIFICO CONCEPCION S.A ,1% 8 TAPE RUVICHA S.A.E.C.A ,6% 9 LC RISK MANAGEMENT S.A.E.C.A ,2% 10 WISDOM PRODUCT S.A.E.C.A ,7% Trading by Brokerage House Millenia Capital CBSA 0,17% Avalon CBSA 7,08% Valores CBSA 22,20% Cadiem CBSA 35,04% Puente CBSA 22,79% Investor CBSA 9,73% Capital Markets CBSA 0,43% Fais CBSA 2,57% 10

12 Securities held in custody at BVPASA. USD Millions 757,03 787,82 529,20 350, mar-17 11

13 Relevant News National Securities Commission (CNV) authorized the regulations for the Financial Derivatives Market, Participants Admission, and Currency Futures Contract Specifications approved by the Board of Directors of BVPASA. The National Securities Commission, in its Resolution 8E/17, authorized BVPASA to operate USD- PYG Currency Futures Contracts. The documents that CNV approved were: Regulations for Financial Derivatives Market, Regulations for Participants Admissions and Specifications for USD- PYG Future Contracts. According to the BVPASA schedule, the product will be fully operative by the second semester of It is worth mentioning that Future Contracts is a widely used risk management tool in other markets. Our product will be aimed mainly to the agribusiness, financial, and import-export sectors. Inter-American Investment Corporation registered its first Bonds Issuance Global Program The Inter-American Investment Corporation registered the first Bonds Issue Global Program by a multilateral organization in the country. This program will allow the Corporation to finance companies and projects in the private sector, especially in the communications, agribusiness, infrastructure and financial sectors. The maturity dates will depend on the underlying projects, with interest rates that can be fixed or variable, depending on the projects conditions. The Corporation is authorized to issue up to USD About the Inter-American Investment Corporation (IIC) The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) Group, is a multilateral organization based in Washington, D.C., that is committed to the development of Latin America and the Caribbean through the private sector. As part of its mission, the IIC supports the private sector and state-owned enterprises through financing in the form of loans, equity investments, and guarantees. The IIC also partners with clients to provide advisory and training services. 12

14 Interest rates PYG BVPASA rates Up to 2 years 11,63% 11,00% 11,74% 11,81% 11,00% 11,63% 11,66% jul-16 ago-16 sep-16 oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 PYG BVPASA rates Between 2 and 5 years 12,01% 11,57% 13,45% 12,53% 12,36% 12,31% 14,13% 13,91% 13,27% jul-16 ago-16 sep-16 oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 13

15 PYG BVPASA rates More than 5 years 10,66% 11,80% 11,92% 10,77% 10,03% 10,40% 11,23% 7,22% 6,74% jul-16 ago-16 sep-16 oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 USD BVPASA rates up to 2 years 6,66% 6,36% 6,47% 6,17% 6,00% 6,00% 6,00% jul-16 ago-16 sep-16 oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 14

16 USD BVPASA rates Between 2 and 5 years 9,0% 8,5% 8,0% 7,5% 8,77% 7,95% 8,24% 7,40% 7,24% 8,57% 7,83% 8,47% 8,45% 7,0% 6,5% 6,0% 5,5% 5,0% jul-16 ago-16 sep-16 oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 8,0% 7,5% 7,0% 6,86% 6,98% 6,85% USD BVPASA rates More than 5 years 6,67% 6,98% 7,41% 7,85% 7,72% 7,44% 6,5% 6,0% 5,5% 5,0% jul-16 ago-16 sep-16 oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 15

17 Safety and efficiency in securities management and custody. BVPASA main services: Custody of domestic securities Trading made simple for all types of securities issued domestically Clearing and settlement Primary and secondary market are cleared and settled through BVPASA. Equity rights Equity rights (interest and principal) of securities held in custody are paid electronically to direct participants Electronic Registry of Securities Accounts Securities are recorded in individual accounts. Sub-Custody Accounts Banking, financial and related entities may be their own custodians for securities and holdings in their own portfolios, and for their Customers. Online reports Through the Extranet, the investor can check the status of his or her investment portfolio, interest maturities, etc. 16