AUTOMATED TRADING — AT LAST

If last Friday’s flurry of economic activity on the first day of electronic trading on the Trinidad and Tobago Stock Exchange is any indicator, then the long delayed introduction of automated trading should mean not only increased acquisition of shares by current stock market players, but the attracting of a considerable number of new investors as well. At the closure of business for the day, 4,485,853 shares with a combined market value of $73,391,003.93 had been traded on the stock exchange with the most outstanding dollar value share price gains being made by Republic Bank Limited - $5.45; Guardian Holdings Limited - $2.00; Ansa McAl Limited - $1.30; Trinidad Cement Limited - 74 cents and National Enterprises Limited - 40 cents.

The highest percentage increase, however, was made by Trinidad Cement Limited - 7%; followed by Guardian Holdings Limited - 5.4%; Republic Bank Limited - 5.2; National Enterprises Limited - 3.77 and Ansa McAl - 2.99%. Of interest is that National Enterprises, whose initial appeal had been aimed at public sector workers, was there with the majors on the first day of electronic trading. Meanwhile, First Caribbean International Bank Limited shares traded the most on the first day, a hugely impressive 3,022,565, with the nearest being National Commercial Bank (Jamaica) Limited, at 611,300; RBTT Financial Holdings Limited - 345,207 and Guardian Holdings Limited - 297,304 shares.

The changeover to electronic trading after approximately 24 years of manual operations was initially expected to have been effected in 2001, ten years after cross listing was introduced on the Trinidad and Tobago, Jamaica and Barbados stock exchanges. And while the manual system did not present any major problems, nonetheless, the electronic implementation last Friday should facilitate an expansion of cross border trading. The slower manual system meant that it took a far longer period for a new stock certificate to be issued. 

This humbug has been eliminated with Friday’s introduction of electronic trading. It should make it that much easier for the setting up of a Regional Stock Exchange, a crucial part of the thinking of the Grand Anse Declaration of 1989, which would see the integration of the Trinidad and Tobago, Jamaica, Barbados, Eastern Caribbean, Bahamas and Dominican Republic stock exchanges.This would be followed at a later stage with the inclusion of Venezuela, Mexico and Colombia.