BOLETIN TRIMESTRAL BVPASA N° 14 Report 16.pdf · Quarterly Report June 2017 4 Securities Issues...
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QUARTERLYREPORT June 2017
Transcript of BOLETIN TRIMESTRAL BVPASA N° 14 Report 16.pdf · Quarterly Report June 2017 4 Securities Issues...
QUARTERLY REPORT
June 2017
Quarterly Report
June 2017
1
Contents
This is our June 2017 Quarterly Report, for people and companies interested in learning more
about the Stock Market in Paraguay and its constant development.
We appreciate your interest and hope you find the report useful and informative.
Main Features of Futures Markets..............................................................2
Securities Issues............................................................................................4
Statistics........................................................................................................5
Relevant news............................................................................................11
Interest rates...............................................................................................13
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Main features of Futures Markets. Futures Markets differ from stock and bonds Markets in a few aspects. For example, participants
in Futures Markets must operate with a margin account. This margins can be in cash or financial
assets that are accepted by the exchange in which they trade.
Margins are determined by the exchange in which they are traded, typically as a function of
asset price volatility, and the maximum expected losses in a given time period, with a determined
confidence level.
Another feature of futures markets, is that the contracts are marked to market, i.e. daily gains or
losses caused by price changes are credited or debited to the account of the participant. This
means, in practical terms, that the changes in value of futures contracts are realized on a daily
basis, to reduce the probability of default when the contract expires.1
Why hedging with futures?
In the special case of currency futures, hedging is used to avoid the uncertainty of the exchange
rate in a future date. For example, a company that has to make capital amortization on their
outstanding bonds issued in foreign currency in 30 days, can buy the foreign currency in the
maturity date, hoping that the exchange rate will have minimum change by then.
With a futures contract, the Company can take a long position for the required amount. In order
to enter the contract, the company must first open its margin account, with the required amount
of assets (cash or securities). Then it has to monitor the price fluctuations and pay or receive the
marked to market daily amounts.
The company can hold the contract until its maturity date, but also it can undo its position by
making an offsetting transaction. Future contracts rarely reach its maturity date.
Let’s assume that the Company took a long position with 100 October currency future contracts
(with a contract size of USD 1.000) with an exchange rate of PYG 5.600, for a total value of PYG
560.000.000. During the 30 days of the operation, the contract is marked to market (there are
daily settlements) and the company has to pay, or it can collect the daily gains or losses.
In case that the exchange rate at maturity date is greater than the price of its contracts (e.g.
PYG 5.666), the company will have to buy the foreign currency in the spot market totaling PYG
566.600.000, but thanks to its long position in the futures market, the daily gains total PYG
6.600.000, thus, compensating for the adverse price movement.
Table 1 shows the evolution of the contract during those 30 days.
Date Price Settlement Price Daily Gains Spot Exchange Rate
03/07/2017 5.600 5.591 (900.000) 5.590
04/07/2017 5.600 5.593 200.000 5.591
05/07/2017 5.600 5.596 300.000 5.596
06/07/2017 5.600 5.603 700.000 5.598
07/07/2017 5.600 5.595 (800.000) 5.602
10/07/2017 5.600 5.586 (900.000) 5.604
1 ESTRADA, JAVIER. Finance in a Nutshell, PEARSON EDUCATION, 2005
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11/07/2017 5.600 5.580 (600.000) 5.608
12/07/2017 5.600 5.587 700.000 5.610
13/07/2017 5.600 5.580 (700.000) 5.614
14/07/2017 5.600 5.580 - 5.619
17/07/2017 5.600 5.574 (600.000) 5.620
18/07/2017 5.600 5.577 300.000 5.621
19/07/2017 5.600 5.587 1.000.000 5.626
20/07/2017 5.600 5.585 (200.000) 5.628
21/07/2017 5.600 5.591 600.000 5.629
24/07/2017 5.600 5.582 (900.000) 5.634
25/07/2017 5.600 5.578 (400.000) 5.639
26/07/2017 5.600 5.587 900.000 5.640
27/07/2017 5.600 5.596 900.000 5.644
28/07/2017 5.600 5.604 800.000 5.648
29/07/2017 5.600 5.596 (800.000) 5.651
30/07/2017 5.600 5.599 300.000 5.655
31/07/2017 5.600 5.666 6.700.000 5.666
Total hedging: 6.600.000
In the end, thanks to the futures market, the Company locked its exchange rate in PYG 5.600, 30
days prior to the maturity date of its capital amortization, thus maintaining a stable cash flow,
without compromising resources in the short term.
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Securities Issues Fixed income issues in the second quarter totaled USD 130.208.445,16.
Stocks issues totaled USD 52.883.753,80
Second quarter issuances detailed below.
Second Quarter Fixed Income Issues in domestic currency
ISIN Issuer Security Maturity Interest
Rate Payment Total Issued
PYTNA01F7667 MINISTERIO DE HACIENDA Bond 24/05/2020 7,3% Six-monthly 350.000.000.000
PYTNA02F7674 MINISTERIO DE HACIENDA Bond 26/07/2022 8,0% Six-monthly 237.735.000.000
PYTPO01F7685 TAPE PORA S.A.E. Bond 28/05/2032 9,0% Variable 10.000.000.000
PYTPO02F7692 TAPE PORA S.A.E. Bond 28/05/2032 9,0% Variable 30.000.000.000
PYMUA01F7830 MUNICIPALIDAD DE ASUNCIÓN Bond 16/06/2025 14,0% Two-yearly 25.000.000.000
PYMUA02F7847 MUNICIPALIDAD DE ASUNCIÓN Bond 15/06/2026 14,5% Two-yearly 25.000.000.000
PYMUA03F7853 MUNICIPALIDAD DE ASUNCIÓN Bond 15/06/2027 14,8% Two-yearly 50.000.000.000
TOTAL 727.735.000.000
Second Quarter Stocks registered in domestic currency
Company Class Quantity Total
Banco Regional S.A.E.C.A. Common Stock A and B 1.230.823 123.082.300.000
Banco Continental S.A.E.C.A Common Stock Multiple Votes A 270.000 27.000.000.000
Banco Continental S.A.E.C.A Common Stock B 210.000 21.000.000.000
Banco Continental S.A.E.C.A Preferred C 320.000 32.000.000.000
Banco Regional S.A.E.C.A. Common Stock A 571.519 57.151.900.000
Banco Regional S.A.E.C.A. Common Stock B 353.331 35.333.100.000
TOTALS 2.955.673 295.567.300.000
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Statistics
Trading volume in the second quarter totaled USD 172.431.970. Compared with the second
quarter of 2016, it represents a decrease of 23,28%.
123,3 98,2
138,9 128,0
193,3
468,4
591,1
172,4
2010 2011 2012 2013 2014 2015 2016 2017
USD millions
224,8
172,4
jun-16 jun-17
USD millions
Trading volume
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Secondary market in the second quarter represented a 55% of total operations.
Secondary market trading in the second quarter totaled USD 95.501.744,91
Primary
45%
Secondary
55%
16,7 9,6 20,4 29,4
62,1
175,3
307,0
95,50
2010 2011 2012 2013 2014 2015 2016 2017
USD Millions
Share percentage by market
Secondary Market Trading Volume
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Fixed Income
86%
Variable
8%
Repo
6%
USD
33%
PYG
67%
Trading Share Percentage by Income Type
Trading Share Percentage by Currency
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.
Issuer Trading Volume
%
MINISTERIO DE HACIENDA 30.610.082 17,75%
VISION BANCO S.A.E.C.A. 24.410.718 14,16%
BANCO CONTINENTAL S.A.E.C.A. 20.556.663 11,92%
MUNICIPALIDAD DE ASUNCIÓN 18.134.104 10,52%
FRIGORIFICO CONCEPCION S.A. 11.185.756 6,49%
BANCO BILBAO VIZCAYA ARGENTARIA PARAGUAY S.A. 8.743.265 5,07%
BANCO ITAÚ PARAGUAY S.A. 7.699.124 4,47%
WISDOM PRODUCT S.A.E.C.A. 6.894.690 4,00%
IZAGUIRRE BARRAIL INVERSORA S.A.E.C.A. 5.161.943 2,99%
BANCO ATLAS S.A. 3.670.190 2,13%
FIDEICOMISO IRREVOCABLE DE TITULARIZACION DE FLUJOS FUTUROS DE CAJA Y ACTIVOS CITYMARKET A
3.639.866 2,11%
TAPE RUVICHA S.A.E.C.A. 3.615.149 2,10%
Corporate Bonds
25%
Public Bonds
28%
Subordinated Bonds
30%
Trusts Bonds
2%
Stocks
8%
Financial Bonds
7%
Trading Share Percentage by Security
Trading Volume by Company
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Banco Regional S.A.E.C.A. 3.243.947 1,88%
FINEXPAR S.A.E.C.A. 3.145.066 1,82%
TAPE PORA S.A.E. 3.068.536 1,78%
GRUPO INTERNACIONAL DE FINANZAS S.A.E.C.A. 2.696.080 1,56%
LC RISK MANAGEMENT S.A.E.C.A. 2.645.648 1,53%
RIEDER & CÍA. S.A.C.I. 2.211.458 1,28%
BANCO AMAMBAY S.A. 2.063.683 1,20%
COLONIZADORA SAN AGUSTIN S.A.E.C.A. 1.440.543 0,84%
INNOVARE S.A.E.C.A. 1.403.931 0,81%
GAS CORONA S.A.E.C.A. 1.188.038 0,69%
ELECTROBAN S.A. 892.768 0,52%
BIEDERMANN PUBLICIDAD S.A. 607.068 0,35%
FINANCIERA RÍO S.A.E.C.A. 595.538 0,35%
BLUE DESIGN S.A.E. 419.091 0,24%
CREDICENTRO S.A.E.C.A. 344.748 0,20%
FIDEICOMISO CSA 01 310.657 0,18%
SUDAMERIS BANK S.A.E.C.A. 260.121 0,15%
AUTOMOTORES Y MAQUINARIA S.A.E.C.A. 237.220 0,14%
FIDEICOMISO LA SUSANA 202.785 0,12%
EMSA INMOBILIARIA S.A. 192.693 0,11%
TRACTOPAR S.A. 186.446 0,11%
BEPSA DEL PARAGUAY S.A.E.C.A. 122.123 0,07%
MUNICIPALIDAD DE CIUDAD DEL ESTE 91.884 0,05%
B.V.P.A.S.A. 89.461 0,05%
NICOLÁS GONZÁLEZ ODDONE S.A.E.C.A. 77.475 0,04%
KUROSU & CÍA. S.A. 67.214 0,04%
FIDEICOMISO STILO HOGAR 02 57.721 0,03%
CASA CENTRO S.A.E.C.A. 49.047 0,03%
FINANCIERA EL COMERCIO S.A.E.C.A. 37.204 0,02%
FIDEICOMISO DP INTERNACIONAL S.A. 01 35.946 0,02%
ALEMÁN PARAGUAYO CANADIENSE S.A. (ALPACASA) 26.087 0,02%
SOLAR AHORRO Y FINANZAS S.A.E.C.A. 25.091 0,01%
MERCOTEC S.A.E. 19.349 0,01%
DATA SYSTEMS S.A.E.C.A. 16.482 0,01%
RECTORA S.A.E. 11.343 0,01%
FIDEICOMISO CIDESA B 11.256 0,01%
MUNICIPALIDAD DE FERNANDO DE LA MORA 5.236 0,0030%
PROYEC S.A. 4.567 0,0026%
COMFAR S.A.E.C.A. 3.167 0,0018%
INVERFIN S.A.E.C.A. 2.970 0,0017%
SALLUSTRO & CÍA. S.A. 734 0,0004%
Total 172.431.970 100%
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Cadiem CBSA
28,7%
Valores CBSA
21,1%
Avalon CBSA
15,6%
Puente CBSA
15,3%
Investor CBSA
9,7%
BVPASA
Licitación
5,2%
Capital
Markets
CBSA 2,7%
Fais CBSA
1,7%
Millenia
Capital
CBSA
0,1%
350,09
529,20
757,03 807,25
2014 2015 2016 jun-17
USD Millions
Trading by Brokerage House
Securities held in custody at BVPASA.
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News
On May 26th, the II Latin American Forum on Agricultural Commodities was held at the Bourbon
Hotel.
The Forum is an event organized by high profile International Companies, with the main objective
of sharing information, analysis and breakthroughs that allow other stakeholders to learn and
follow the developments of commodities in the global market.
Successful experts of different countries shared their knowledge and experience on their
respective fields of expertise with the audience.
Osvaldo Gauto, and Gustavo Picolla, Business Manager and Derivatives Consultant respectively,
represented BVPASA at the Forum, and presented the upcoming new product: Currency Futures
Contracts, with its main characteristics and uses, both for hedging and speculating.
On June 29th, the Meeting of Alambra S.A. bondholders took place. Reductions of 50% of the
overdue capital, and 100% of overdue interest were approved. The final amortization date
approved by the meeting is July 31st.
II LATIN AMERICAN AGRICULTURAL COMMODITIES - ASUNCION
Colombia, Paraguay and Argentina
ALAMBRA S.A. BONDHOLDERS MEETING
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On June 30th, the Meeting of Wisdom Product S.AE.C.A. bondholders was held.
The main points on the agenda were a change in the representative of the bondholders, and
the early redemption of bonds issued under the G3, G5, G6 y G7 issuance programs.
The meeting approved both proposals.
WISDOM PRODUCT S.A.E.C.A. BONDHOLDERS MEETING
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Interest rates
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
jul-16 aug-16 sep-16 oct-16 nov-16 dec-16 jan-17 feb-17 mar-17 apr-17 may-17 jun-17
PYG BVPASA rates
BVPASA. Under 2 years BVPASA. 2 to 5 years BVPASA. Over 5 years
6%
6%
7%
7%
8%
8%
9%
9%
10%
jul-16 aug-16 sep-16 oct-16 nov-16 dec-16 jan-17 feb-17 mar-17 apr-17 may-17 jun-17
USD BVPASA rates
BVPASA. Under 2 years BVPASA. 2 to 5 years BVPASA. Over 5 years
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Safety and efficiency in securities management and custody. BVPASA main services:
Custody of domestic securities
Trading made simple for all types of securities issued domestically
Clearing and settlement Primary and secondary market are cleared and settled
through BVPASA.
Equity rights Equity rights (interest and principal) of securities held in
custody are paid electronically to direct participants
Electronic Registry of Securities Accounts Securities are recorded in individual accounts.
Sub-Custody Accounts Banking, financial and related entities may be their own
custodians for securities and holdings in their own portfolios, and for their Customers.
Online reports Through the Extranet, the investor can check the status of his or her investment portfolio, interest maturities, etc.
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