- Title: Colombia stock market seeks to boost trading by listing new funds
- Date: 7th August 2017
- Summary: BOGOTA, COLOMBIA (RECENT - AUGUST 3, 2017) (REUTERS) COLOMBIAN SECURITIES EXCHANGE PRESIDENT JUAN PABLO CORDOBA, SITTING DOWN BEFORE INTERVIEW LOGO OF COLOMBIAN STOCK EXCHANGE IN OFFICE (SOUNDBITE) (Spanish) COLOMBIAN SECURITIES EXCHANGE PRESIDENT JUAN PABLO CORDOBA, SAYING: "We have identified - in the short term for example - that this subject I talked about which is a more professional way of managing the real estate assets through institutional funds that raise money in the capital market, invest either in construction or in acquisition of these premises in shopping malls, office buildings, etc. and they manage them professionally. It's the way they are going to start doing this or they way it's already being done in Colombia and will grow in the future. We're working toward being able to list those assets in the market, so there will be a new class of equity assets, not company shares but a fund that's registered in the equity market and traded as a stock."
- Embargoed: 21st August 2017 16:42
- Keywords: Colombia billions of dollars stock market new assets real estate investment funds trading
- Location: BOGOTA, COLOMBIA
- City: BOGOTA, COLOMBIA
- Country: Colombia
- Topics: Economic Events
- Reuters ID: LVA0026T5RXOJ
- Aspect Ratio: 16:9
- Story Text: Colombia hopes to attract billions of dollars to its stock market by listing new assets like real estate investment funds to propel trading now limited to a few dozen companies, the head of the bourse said.
Colombian Securities Exchange President Juan Pablo Cordoba, interviewed for the Reuters Latin American Investment Summit, said there should be at least double the 69 companies trading on the exchange and called for modifying tax regulations to make the bourse more competitive.
The local stock market trades an average of $50 million a day in shares, a figure that pales against the $1.2 billion daily volume in domestic public fixed income instruments and $1 billion in the foreign exchange market.
Cordoba said the new real estate investment funds would be aimed at raising money in the market for the construction or acquisition of shopping centres, office buildings and other structures.
The funds, which already operate in the United States and Mexico, could be available throughout the Pacific Alliance nations of Mexico, Colombia, Chile and Peru, Cordoba said.
The stock exchanges of the four countries also have integrated securities' trading through the Latin American Integrated Market (MILA). Such investment vehicles could help attract foreign capital as an alternative to the more traditional stock market, which has struggled to attract interest from companies, even with a 10 percent increase in share prices so far this year. - Copyright Holder: REUTERS
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