The Superintendency of the Securities Market (SIMV) reported that settlements in the stock market, measured both by the volume settled and the number of settlements made, have increased during the first half of 2023 compared to the first half of the previous year.
Some published information concludes an alleged slowdown in stock market settlements, due to the fact that lower amounts in pesos (DOP) were settled during May and June 2023 than in the same months of 2022.
However, as evidenced by the stock market data published by the SIMV and the centralized securities depository, the aggregate volume expressed in pesos (DOP) during the first half of 2023 is DOP 3.9 trillion pesos. While, in the first half of last year, the amount was DOP 2.9 billion. This means that in the first half of the year 1 trillion pesos more has been settled than what had been settled during 2022, equivalent to an increase of 36%.
Graph 2.
Although fewer amounts were settled in May and June 2023 than in the same months of 2022, between January and April 2023 much higher amounts were settled, generating the aforementioned accumulated year-on-year increase of 36%.
If we focus on the number of settlements, the reality is the same: a significant monthly and cumulative increase in the first half of 2023, compared to the first half of 2022.
During the year 2023, the monthly average of settlements has been 38,051, compared to a monthly average of 26,380 during the first half of the previous year. While the accumulated number of settlements shows a year-on-year increase of 44% between 2022 and 2023.
All of this shows that the Dominican stock market continues to show dynamism, with higher levels of aggregate settlements, both in volume settled and in number of settlements. That is, it exhibits higher levels of liquidity.
Graph 3.
The SIMV projects that if this rate is maintained, settlements will reach record highs during the year 2023, both in comparison with the Gross Domestic Product (GDP) and in relation to the securities in custody.