The president of the Jamaica Employers’ Federation (JEF) has attributed the strong performance of Jamaica’s stock market to prevailing low interest rates, which have enabled companies listed on the exchange to access low-cost capital for expansion and upgrades.
Speaking against the background of the Jamaica Stock Exchange (JSE) being ranked the top-performing stock market globally in 2018, with its value having risen 29 per cent for the year according to Bloomberg Businessweek, David Wan said the government’s ongoing debt-reduction strategy has freed up large pools of low-interest capital for borrowing by private sector companies.
“Now that the supply of bonds (has) decreased significantly because the Government is paying off the debt, they (investors) are now looking at (other) options, which [include] real estate and stocks. So that has been another [reason for] this buoyancy in the stock market,” the JEF president told JIS News.
Wan said the outstanding performance of the JSE “is very good for Jamaica” and that it augured well for the future of the stock market and the Jamaican economy.