Transparency, accountability and investor education, key to driving healthy capital markets — JSE Managing Director

Oct 10, 2024 News

---

2nd Annual Regional Investments and Capital Markets Conference

Kaieteur News – Transparency, accountability and investor education are among the keys to driving a vibrant and healthy capital investment market.

Managing Director of Jamaica Stock Exchange (JSE), Dr. Marlene Street Forrest made this point while delivering her remarks at the opening of 2^nd Annual Regional Investments and Capital Markets Conference being hosted at the Pegasus Hotel in Kingston, Georgetown. The conference commenced on Tuesday evening.

The event is the result of collaboration between the JSE and the Georgetown Chamber of Commerce and Industry (GCCI), and is being held under the theme ‘Financing For Success: Where Passion, Prosperity and People Align.’

The two-day event is an important forum for discussing the direction of capital markets in the region. With keen focus on expanding access to equity capital and creating an environment where more people can participate in financial markets, the conference is geared towards highlighting the importance of access to capital for business sustainability, and is underpinned by the view that strong, inclusive capital market will provide the answers for many problems that Small and Medium-sized Enterprises (SMEs) and other companies experience.

During her address, Dr. Street Forrest told the gathering of local and regional stock exchange experts that the Capital Markets conference is a suitable catalyst for laying the ground work by which both Guyana and Jamaica can collaborate and evolve. “I’m pleased to report that our collaboration has laid the ground work for exciting new developments… Together, we are working to ensure that there is a stock exchange that not only connects local businesses to Regional and Global Capital but also guarantees agility and sustainability in the rapidly evolving market,” she said.

According to the JSE expert, in order for any stock exchange to yield the benefits of success, the frame work must be backed by international best practices.

Dr  Street Forrest explained that “In Jamaica, for example, we have seen tremendous impact of the stock exchange…By focusing on issues such as transparency, accountability and investor education, the JSE has been ranked one of the top performing in the world. This success is no accident; it is as a result of deliberate policies and a commitment for fostering passion prosperity and people.”

She noted that Guyana is no different; it has potential that can lead to vibrant and healthy Capital Market.

“There are unprecedented opportunities for emerging markets that could attract international investment. This means our businesses must be to compete on the global scale with strong regulatory framework such as transparency and adherence to international best practices.”

In addition, Dr. Street Forrest, remarks were delivered by Chairman of JSE, Mr. Steve Whittingham; Chief Executive Officer of NCB Capital Markets Limited, Mr. Angus Young, and Managing Director of Jefferies Private Wealth Management, Mr. Gregory Fisher.

In his address, Chairman of the JSE, Steven Whittingham urged Guyana to wary of economic traps. He pointed to time while Guyana is in its season of economic growth; it should be cautious least of how the is wealth is managed. The Chairman noted that “successful economies are not built solely on natural resources. They are built by successful companies and successful companies need capital. Guyana is at a crossroads. It’s a land of opportunity, but you must tread carefully.”

Whittingham highlighted Jamaica’s bauxite levy as cautionary tale for Guyana. He noted that the Jamaican government, back in the 1970s, had introduced a capital development fund that was supposed to act as a safety net for the economy. “The plan?…Was to save the proceeds from bauxite to support social enterprise and bolster the country’s reserves, instead, the fund was mismanaged, and eventually the capital vanished,” the Chairman said.

Mr.  Whittingham also took the time to highlight the success of Jamaica’s Stock Exchange, which now boasts over 100 listed companies and a market capitalisation of $11 billion. “We’ve built a platform for wealth generation and capital raising that is internationally recognised. But it wasn’t always this way,” he stated.

Meanwhile in his speech, Chief Executive Officer (CEO) of the NCB Capital Markets limited, Angus Young underscored the pivotal role of broker dealers in facilitating the growth and expansion of businesses.

“The broker dealer will also bring fresh capital from the region into Guyana as investors seek to participate in the fastest growing economy in the world,” Young said. He continued: “Guyana is at the defining moment in its history, driven by the growth of its energy sector and the subsequent opportunities it has unlocked. The rapid developments we are witnessing is unprecedented. The NCB’s CEO added that to truly unlock the benefits of the development, there must be collaboration in all levels to develop a capital market structure that democratises wealth for every Guyanese citizen.

“On one hand, with this progress comes the need for capital, patient capital that would nurture emerging industries, support infrastructure and ultimately fuel the growth of businesses on all levels,” he said.

---

• accountability, healthy capital markets, investor education, Jamaica Stock Exchange, Managing Director of JSE, Transparency

---