Stock exchange enjoys growth

Cayman’s stock exchange enjoyed a ‘positive period’ in the 18 month period up to the end of June 2004, the Legislative Assembly was told.

Laying the exchange’s financial statements for the period on the table in the House on Monday, Financial Secretary Kenneth Jefferson said there had been continued interest in listings despite difficult world markets.

At the end of June 2004 listings on the exchange totalled 710, of which 620 were in respect of mutual funds, said Mr. Jefferson.

‘The total market capitalisation was 51 billion US dollars at the end of the period, of which 45 billion US dollars related to mutual funds,’ he said.

The exchange’s total revenues showed an increase to CI$1,206,844 for the 18 month period, which was in increase from the CI$741,045 for the 2002 year, Mr. Jefferson told the House.

The operating expenses totalled CI$1,386,970 bringing the net operating loss down to CI$180,126 for the 18 month period. The operating loss for the 2002 year was CI$231,765, ‘reflecting the steady path to self sufficiency,’ he said.

It was proposed to pay a shareholder dividend of CI$58,415, he said.

At 30 June the exchange had seven listing agents and the number of broker members increased to a total of eight during the period, the House was told.

Mr. Jefferson outlined two important goals that were realised during the period.

In October 2003, IOSCO at its annual conference voted to approve the exchange as an affiliate member and in March 2004 it was designated as a ‘recognised stock exchange’ by the UK’s Inland Revenue.

‘The management of the exchange is anticipating that the exchange will have grown faster during the financial year 2004/05 – mainly as a result of the United Kingdom’s Inland Revenue recognition, subject of course, to performance of the major global economies and financial markets,’ said Mr. Jefferson.