The Capital Markets Law established a modern regulatory structure, opened stock market trading to banks and other firms, and encouraged the development of mutual funds. The bulk of activity on the country's two small stock exchanges currently involves trading in short-term commercial paper, bank obligations, and government debt.

Yet, with most large companies in Ecuador still in family or entirely private hands and looking to external credit lines for financing, the country has yet to develop a vibrant bull and bear culture to rival the more popular investment of real estate.

Therefore, in contrast to the government's thorough legal overhaul of the Ecuadorean banking sector, the modest size of its equity market is not due to any legislative restriction. Despite the modest size of the market, the country has two different stock exchanges, known locally as the Bolsa de Valores de Quito BVQ and the Bolsa de Valores de Guayaquil BVG , both of which date back to The Ecuindex, the price index and market prices of Ecuador, is one of the chief national indicators, and displays the development of the national stock market in its entirety; as stock prices of publicly traded companies rise or fall, the Ecuindex reflects the movement of the market as a whole.

As of September 1, , the Global Ecuindex had peaked at 1, It is not recovering to levels attained prior to the crisis. And yet, political stability has promoted some activity, with more companies issuing investment papers. Market capitalization of listed companies as a percentage of GDP in Ecuador was 8.

Its highest value over the past 19 years was The figure for was 8. The first law regarding the securities market was passed in May , a time when both BVQ and BVG became non-profit civil corporations by law. Four years later, new legislation established the main regulatory bodies and policy makers of the stock market, which gave the capital markets a firm footing.

Stock in Trade - The Business Year

The main regulators of the securities market are the National Securities Council and the Superintendency of Companies. According to the Securities Market Act, the former is the governing body responsible for establishing the general policy of the stock market, while the latter is tasked with implementation and regulation of trading activities.

The types of securities traded can be fixed or variable. The fixed-income securities are those documents through which the investor receives a known quantity in each period or grants the right to receive fixed interest in the terms of bonds, certificates of deposit, and so on.

Meanwhile, equity securities are those that include a right of ownership over the assets of a company, which generate an uncertain cash flow and will depend on the performance of the company and the benefits. Within the category of fixed-interest securities, the most frequently traded negotiable instruments, besides bonds, are a form of debenture that stock companies, limited liability companies, and branches of foreign companies domiciled in Ecuador may issue to acknowledge or create a debt for the issuer.

This may later be converted to stock. Investment funds must be registered with the Securities Market Registry, which is an organ subordinate to the Superintendency of Companies. The largest investor class is the government of Ecuador, acting through the Ecuadorean Social Security Institute, and banks, followed at a distinct remove by local equity funds. International equity funds are a rarity on the Ecuadorean stock exchanges.

There are approximately 20 local private equity funds listed in Ecuador. The fundamental requirement of these funds is registration with the Securities Market Registry, which is an organ dependent on the Superintendency of Companies equivalent to Companies House in the UK.

These funds may be described as currently in their initial stages and, therefore, are not yet fully developed. Investments mostly take the form of bank instruments. The BVQ has been active in tackling money laundering by developing its own back office system, SICAV. Its principle index is the Ecuindex, although two others are used in Quito. IVQ is the statistical measure of monetary value, while the IRRF is an index for bond performance.

Currently, the BVQ has 44 in listed companies and 35 brokers, all authorized by the Superintendency of Companies. The BVG currently has 45 listed companies and 20 brokers. The main index is the BVG, which shows the evolution of a representative basket of stocks selected according to the trading volume and market capitalization of the companies.

Some of the most relevant members are La Favorita, San Carlos, Holcim Ecuador, National Brewery, Banco de Guayaquil, Inversancarlos, Green Hill Forest, and Banco del Pichincha. Another index is the IRECU-BVG, a national index that is adjusted for movements of capital and the delivery of cash dividends. A third is the IPECU-BVG, an index of the Ecuadorean stock market prices, reflecting its evolution and adjustments to the movements of capital. Since January , the BVQ and the BVG have begun unifying their trading systems with the Unique Interconnected Trading System SIUB.

Ecuador's latest Securities Act envisages the stock exchange as a tax-paying limited company SA , rather than being a non-profit organization that does not pay taxes. The stock exchange will promote further corporate transparency, as well as transparency in market operations, and better monitor data availability on listed companies.

In Ecuador, the Social Security Institute and Social Security Bank BIESS are the chief players in the government bond market. And according to Reuter's, Ecuador is planning to issue sovereign debt, possibly before end, or in 1Q Since that time, Quito has relied heavily on Chinese credits to finance liquidity-hungry infrastructure and other public works projects. Underpinning Ecuador's recovery from the depths of historically its worst crisis has been a radical transformation of the economic, financial, and commercial environment.

This has seen a systematic ramping up of strategic national infrastructure to springboard the country's economic prosperity. It also established priority areas for social expenditure, most notably to address social imbalances. President Rafael Correa's administration—in office since January of —has indeed reduced these imbalances. Unemployment among Ecuador's population of 15 million is estimated at 6. Meanwhile, the middle class continues to expand, with the familiar knock-on effect of rising demand for goods and services, thus spurring investment in education and further stimulating economic growth.

A more FDI-friendly business environment, too, has energized the private sector. On the back of a rare re-election, President Correa is looking to secure new trading partners as well as bring stability, investment, and growth to the country. The charismatic President of Ecuador has shown he is not to be put upon on the international political stage, and has introduced a raft of much needed reforms at home.

Improving the quality of life of our citizens is possible through the efforts, dedication, and determination of the Municipality of Cuenca by implementing programs and projects that show, day by day, that Buen Vivir, or Good Living, is possible.

Ecuador pursues a unique foreign policy agenda based on social cooperation. Government borrowing continues in support of a strong public investment program, while a widening trade deficit highlights dependence on international oil prices. Francisco Rivadeneira, Minister of International Trade, Ecuador. TBY talks to Francisco Rivadeneira, Minister of International Trade, on trade negotiations with the EU, diversifying exports, and changing the economic and productive matrix.

To increase productivity and reduce the country's dependency on imports, the Ecuadorean government is preparing an aggressive overhaul to Ecuador's economic productivity matrix over the next several years. Multinational giants see the Ecuadorean market as a stable location for doing business, with a growing customer base. Throwing the Bathwater, but Saving the Baby.

A radical rethink of Ecuador's financial universe based on President Correa's social program has left generated funds that will aid the country toward continued recovery. A diverse selection of innovative products is likely to fuel the banking sector as businesspeople seek new ways to generate savings.

Ecuador's equity market needs more listings to become a regional force, and for citizens to view stocks as an alternative investment instrument to real estate. The growth of Ecuador's middle class and recent changes to the regulatory environment have created a range of new opportunities for international companies in the insurance sector. Diego Sosa Villaquiran, Executive President, QBE Seguros Colonial. TBY talks to Diego Sosa Villaquiran, Executive President of QBE Seguros Colonial, on expansion plans, aims in Ecuador, and the state of the sector.

As Ecuador's economy grows, so too does the demand for insurance, both for new businesses and individuals aware of its advantages. TBY talks to Fernando Terneus, Executive President of Tecniseguros, on the prevailing trends in Ecuador's insurance segment. With a budget reliant on hydrocarbon proceeds, the administration is seeking to increase extraction, while banking on strong international oil prices. TBY talks to Oswaldo Madrid B.

The development of new refining capacity will close a major trade gap and allow Ecuador to produce a new mix of products for the first time.

The distribution sector has grown in support of Ecuador's domestic oil industry, while the country's retailers are strengthening their positions with new products. The bulk of Ecuador's power generation comes from its hydroelectric network, although the government has been looking to diversify toward alternative energy sources.

Capacities in both hydrocarbon extraction and electricity generation are growing. With plans to double hydroelectric power production over the coming decade, Ecuador anticipates an increase in grid capacity to alleviate supply deficits and attract more investment in mining. Ecuador's arrival on the world's mining scene has been fraught with delays as the government seeks to strike the right tax balance to encourage investors. TBY talks to Dominic Channer, Vice-President of Kinross Ecuador, on the Fruta del Norte gold mine, and the benefits mining will bring to local communities.

Ecuador, having long propped up its economy on primary and non-renewable extractive industries, has been diversifying its non-oil industrial sector for future stability.

Ecuador's changing demographics have altered the dynamics of the FMCG industry, although economic disparities mean employing diverse marketing strategies to reach the local consumer. Adriana Gonzalez, President, Kimberly-Clark Ecuador. FMCG companies are focused on local communities to succeed for the benefit of the country at large. Innovation in Ecuador's manufacturing industry plays a key role in efforts to diversify the export mix. The number of Internet users has risen ten fold over the past six years, thanks to government initiatives and a focus on rural areas.

Mobile telephony penetration rates are steadily increasing, ranking Ecuador above other countries in the region. Increasing mobile telephony rates and the introduction of new technologies are defining the sector in ICT infrastructure is helping to foster better communication and more opportunities for businesses and individuals. The Correa government has prioritized local technological solutions, underpinned by improved education, to bolster the international competitiveness of Ecuador's IT industry.

TBY talks to Richard Moss, CEO Latin America of Cobiscorp, on the importance of IT to an economy. TBY talks to Alfredo Fuchs, General Manager of Sony Ecuador, on innovation and the beginning of television assembly. Many of the world's IT giants have had a long history in Ecuador, today bringing new solutions to businesses.

Enrique Marquez de la Plata, Commercial Engineer, Expreso. TBY talks to Enrique Marquez de la Plata, Commercial Engineer of Expreso, on innovating to keep the reader informed and loyal.

Ecuador Stock market capitalization, percent of GDP - data, chart | husoxupowoj.web.fc2.com

In a three-pronged attack, Ecuador is working hard on land, at sea, and in the air to expand the transport infrastructure that props up both its foreign trade and tourism industry. The rising tide of maritime traffic is spawning significant investment in, and expansion of, Ecuador's ports, strengthening the country's position as a logistics and transport hub.

Ecuador's airline business has seen companies come and go, but economic growth spurring increased connectivity and quality customer experience offer business potential.

LUM Stock Price - Lumina Gold Corp. Stock Quote (Canada: TSX Venture) - MarketWatch

As port infrastructure improves technically, the operating standards certification of companies using it has gained in importance. Improvements in infrastructure have helped logistics players in Ecuador expand and diversify as the country seeks to offer better transportation services throughout the country and region. Armando Castellanos, Executive Dynamizer, Servientrega Ecuador.

TBY talks to Armando Castellanos, General Manager of Servientrega,on the company's competitive advantages, its product portfolio, and expansion plans. Ecuador is looking to expand and modernize its logistic services to meet growing demand from both local and international suppliers.

Ecuador's real estate sector is healthy and sustainable, amid better credit terms and government incentives, not to mention returning nationals and flush expatriates.

Luis Valero Brando, Executive President, Constructora Valero. TBY talks to Luis Valero Brando, Executive President of Constructora Valero, on the company's project pipeline and how economic stability is helping the residential construction market.

Economic stability and credit availability have fuelled real estate demand for both residential and office space. Extensive public investment, population growth, and rising purchasing power have fuelled the infrastructure sector in Ecuador. Ecuador is diversifying its energy sources, which spells huge contracts for companies with the knowledge and experience to handle these megaprojects. Ecuador still manages to produce and export its staple foods, but is now looking to increase its presence of cash crops and also its yield per hectare.

Agriculture is one of Ecuador's largest non-oil export sectors, with firms across the industry seeking new ways to produce more efficiently and get goods to market, at home and abroad. Rising costs are hampering the profits of Ecuador's banana exporters, and leading to calls for greater action to combat the sector's downturn. Ecuador's floriculture sector is relatively young compared to the likes of the Netherlands, yet still it is showing that it has the quality of product to be one of the market leaders.

As Ecuador's exports begin to grow, companies are looking at new and unique ways to add value to their products and make them more attractive on the international market. High healthcare spending has underlined the current administration's agenda, with efforts now being made to retain talent and expand service access. Carina Vance Mafla, Minister of Public Health, Ecuador. TBY talks to Carina Vance Mafla, Ministry of Public Health in Ecuador, on increased investment, human capital, and the public-private balance.

Private hospitals have boosted employment opportunities and introduced higher-quality treatment to a growing middle class. Since the government has shifted its focus onto core sectors, health being one of them, pharmaceutical companies must remain competitive to win government contracts and develop new drugs.

Under President Correa, the education sector is undergoing significant changes aimed at boosting access and transforming the country into a research hub. Ecuador's higher education offering long ago earned its stripes and today boasts a course portfolio meeting student and national requirements alike. TBY talks to Luz Elena Coloma, General Manager of Quito Turismo, on the evolution of the city as a tourism destination.

Officially San Francisco de Quito, the capital city of Ecuador has a long and colorful history. A growing tourist sector is allowing hotels in Ecuador's cities to expand, move into different areas of tourism, and cater for new visitors. Over the past few years, the world has experienced an extraordinary financial and economic upheaval. Despite that, Latin American economies have largely avoided that situation, and therefore become a more attractive place for foreign investors, something.

Celso Malimpensa, Country Geographic Leader, PwC Ecuador. New regulations introduced in are still shaping the sector, but growth remains brisk.

TBY talks to Oscar Zuloaga Ayala, Executive President of ZHM Seguros, on the importance of specialized service, changes in regulation, and consolidation.

STOCK IN TRADE Ecuador FINANCE REVIEW: Year In Review Ecuadors of Perception Underpinning Ecuador's recovery from the depths of historically its worst crisis has been a radical transformation of the economic, financial, and commercial environment. HE Rafael Correa Iron Willed The charismatic President of Ecuador has shown he is not to be put upon on the international political stage, and has introduced a raft of much needed reforms at home. Cuenca Excellence in Quality of Life Improving the quality of life of our citizens is possible through the efforts, dedication, and determination of the Municipality of Cuenca by implementing programs and projects that show, day by day, that Buen Vivir, or Good Living, is possible.

Leaders Speak Wise Words Ecuador pursues a unique foreign policy agenda based on social cooperation. Economy Lend Me Your Ear Government borrowing continues in support of a strong public investment program, while a widening trade deficit highlights dependence on international oil prices. Interview Francisco Rivadeneira, Minister of International Trade, Ecuador TBY talks to Francisco Rivadeneira, Minister of International Trade, on trade negotiations with the EU, diversifying exports, and changing the economic and productive matrix.

Productive Matrix Policy The Oracle of Change To increase productivity and reduce the country's dependency on imports, the Ecuadorean government is preparing an aggressive overhaul to Ecuador's economic productivity matrix over the next several years.

Demand for Quality Multinational giants see the Ecuadorean market as a stable location for doing business, with a growing customer base. Banking Throwing the Bathwater, but Saving the Baby A radical rethink of Ecuador's financial universe based on President Correa's social program has left generated funds that will aid the country toward continued recovery. Banks The Cash Flow A diverse selection of innovative products is likely to fuel the banking sector as businesspeople seek new ways to generate savings.

Capital Markets Stock in Trade Ecuador's equity market needs more listings to become a regional force, and for citizens to view stocks as an alternative investment instrument to real estate. Insurance Because You Never Know The growth of Ecuador's middle class and recent changes to the regulatory environment have created a range of new opportunities for international companies in the insurance sector.

Interview Diego Sosa Villaquiran, Executive President, QBE Seguros Colonial TBY talks to Diego Sosa Villaquiran, Executive President of QBE Seguros Colonial, on expansion plans, aims in Ecuador, and the state of the sector. The Business of Insurance Premium Service As Ecuador's economy grows, so too does the demand for insurance, both for new businesses and individuals aware of its advantages.

Interview Fernando Terneus, President, Tecniseguros TBY talks to Fernando Terneus, Executive President of Tecniseguros, on the prevailing trends in Ecuador's insurance segment. Energy Extract or Bust? Interview Oswaldo Madrid, General Manager, Petroamazonas EP TBY talks to Oswaldo Madrid B. Refining You Can Always Go Downstream The development of new refining capacity will close a major trade gap and allow Ecuador to produce a new mix of products for the first time.

Distribution Increased Offerings The distribution sector has grown in support of Ecuador's domestic oil industry, while the country's retailers are strengthening their positions with new products.

Electricity Pylon the Power The bulk of Ecuador's power generation comes from its hydroelectric network, although the government has been looking to diversify toward alternative energy sources.

Capacity Expansion Rising Level Capacities in both hydrocarbon extraction and electricity generation are growing. Hydro Something in the Water With plans to double hydroelectric power production over the coming decade, Ecuador anticipates an increase in grid capacity to alleviate supply deficits and attract more investment in mining.

Mining For Those About to Rock Ecuador's arrival on the world's mining scene has been fraught with delays as the government seeks to strike the right tax balance to encourage investors. Channer, Vice-President, Kinross TBY talks to Dominic Channer, Vice-President of Kinross Ecuador, on the Fruta del Norte gold mine, and the benefits mining will bring to local communities.

Industry Not Oil It Seems Ecuador, having long propped up its economy on primary and non-renewable extractive industries, has been diversifying its non-oil industrial sector for future stability. FMCGs Shelf Service Ecuador's changing demographics have altered the dynamics of the FMCG industry, although economic disparities mean employing diverse marketing strategies to reach the local consumer.

FMCG Food for Thought FMCG companies are focused on local communities to succeed for the benefit of the country at large. Domestic Innovation Blowing Bubbles Innovation in Ecuador's manufacturing industry plays a key role in efforts to diversify the export mix. ICT Getting with the IT Crowd The number of Internet users has risen ten fold over the past six years, thanks to government initiatives and a focus on rural areas.

The Telecoms Sector Two Pillars Increasing mobile telephony rates and the introduction of new technologies are defining the sector in Infrastructure Always Upgrading ICT infrastructure is helping to foster better communication and more opportunities for businesses and individuals. Interview Richard Moss, CEO Latin America, Cobiscorp TBY talks to Richard Moss, CEO Latin America of Cobiscorp, on the importance of IT to an economy.

Interview Alfredo Fuchs, General Manager, Sony Ecuador TBY talks to Alfredo Fuchs, General Manager of Sony Ecuador, on innovation and the beginning of television assembly. Multinational Players All About Ecuador Many of the world's IT giants have had a long history in Ecuador, today bringing new solutions to businesses. Interview Enrique Marquez de la Plata, Commercial Engineer, Expreso TBY talks to Enrique Marquez de la Plata, Commercial Engineer of Expreso, on innovating to keep the reader informed and loyal.

Transport I Get Around In a three-pronged attack, Ecuador is working hard on land, at sea, and in the air to expand the transport infrastructure that props up both its foreign trade and tourism industry. Ports Motion of the Ocean The rising tide of maritime traffic is spawning significant investment in, and expansion of, Ecuador's ports, strengthening the country's position as a logistics and transport hub.

Port Services In the Dock As port infrastructure improves technically, the operating standards certification of companies using it has gained in importance. Logistics I Ship It Improvements in infrastructure have helped logistics players in Ecuador expand and diversify as the country seeks to offer better transportation services throughout the country and region.

Interview Armando Castellanos, Executive Dynamizer, Servientrega Ecuador TBY talks to Armando Castellanos, General Manager of Servientrega,on the company's competitive advantages, its product portfolio, and expansion plans.

Logistics Going Places Ecuador is looking to expand and modernize its logistic services to meet growing demand from both local and international suppliers. Real Estate Safe as Houses Ecuador's real estate sector is healthy and sustainable, amid better credit terms and government incentives, not to mention returning nationals and flush expatriates.

Interview Luis Valero Brando, Executive President, Constructora Valero TBY talks to Luis Valero Brando, Executive President of Constructora Valero, on the company's project pipeline and how economic stability is helping the residential construction market.

Construction Building Up Steam Extensive public investment, population growth, and rising purchasing power have fuelled the infrastructure sector in Ecuador. Agriculture Silence of the Yams Ecuador still manages to produce and export its staple foods, but is now looking to increase its presence of cash crops and also its yield per hectare.

Agriculture The Shrimp that Roared Agriculture is one of Ecuador's largest non-oil export sectors, with firms across the industry seeking new ways to produce more efficiently and get goods to market, at home and abroad.

Bananas Appeeling for Support Rising costs are hampering the profits of Ecuador's banana exporters, and leading to calls for greater action to combat the sector's downturn. Flowers Petal to the Metal Ecuador's floriculture sector is relatively young compared to the likes of the Netherlands, yet still it is showing that it has the quality of product to be one of the market leaders.

Value-Added Every Little Bit Helps As Ecuador's exports begin to grow, companies are looking at new and unique ways to add value to their products and make them more attractive on the international market. Health You Only Liver Once High healthcare spending has underlined the current administration's agenda, with efforts now being made to retain talent and expand service access. Interview Carina Vance Mafla, Minister of Public Health, Ecuador TBY talks to Carina Vance Mafla, Ministry of Public Health in Ecuador, on increased investment, human capital, and the public-private balance.

Hospitals One Step Forward Private hospitals have boosted employment opportunities and introduced higher-quality treatment to a growing middle class. Pharmaceuticals Pharm Ville Since the government has shifted its focus onto core sectors, health being one of them, pharmaceutical companies must remain competitive to win government contracts and develop new drugs. Education Weapons of Math Instruction Under President Correa, the education sector is undergoing significant changes aimed at boosting access and transforming the country into a research hub.

Higher Education University Challenge Ecuador's higher education offering long ago earned its stripes and today boasts a course portfolio meeting student and national requirements alike. Interview Luz Elena Coloma, General Manager , Quito Turismo TBY talks to Luz Elena Coloma, General Manager of Quito Turismo, on the evolution of the city as a tourism destination. Quito Incan Gold Officially San Francisco de Quito, the capital city of Ecuador has a long and colorful history.

Hotels Grand Ideas A growing tourist sector is allowing hotels in Ecuador's cities to expand, move into different areas of tourism, and cater for new visitors.

Ecuador Stock Market (ECU) | | Data | Chart | Calendar | Forecast

Accountancy Number Crunch Over the past few years, the world has experienced an extraordinary financial and economic upheaval.

Despite that, Latin American economies have largely avoided that situation, and therefore become a more attractive place for foreign investors, something read article. SEE ALSO Up next The key players and their stories are all in The Business Year. Please enter a valid email address. Want to read the full interview? Purchase this article now for GBP9. Subscribe Today to access this article and all our other premium content. QUITO The BVQ has been active in tackling money laundering by developing its own back office system, SICAV.

GUAYAQUIL The BVG currently has 45 listed companies and 20 brokers. TWO JOIN TO MAKE THREE Since January , the BVQ and the BVG have begun unifying their trading systems with the Unique Interconnected Trading System SIUB. BONDS In Ecuador, the Social Security Institute and Social Security Bank BIESS are the chief players in the government bond market.

Insurance Stay Safe New regulations introduced in are still shaping the sector, but growth remains brisk.