Guyana’s massive new oil fields are about to significantly transform the economy of CARICOM’s South American member-state. If you’re interested in investing in Guyana, there’s actually a small stock exchange that will allow you to invest in a few Guyanese companies. I’m Kalilah Reynolds, and it’s time for another episode of MoneyMondaysJA.
TRANSCRIPT
How to Invest on the Guyana Stock Exchange
By Toni-Ann Myrie
Guyana’s massive new oil fields are about to significantly transform the economy of CARICOM’s South American member-state. If you’re interested in investing in Guyana, there’s actually a small stock exchange that will allow you to invest in a few Guyanese companies.
Guyana, known as the “Land of many waters”, is a Caribbean country on South America’s North Atlantic coast, and home to an emerging capital market. Guyana is on the verge of becoming the largest oil-producing country in the world on a per capita basis, which should generate significant wealth.
The Guyana Stock Exchange is the newest exchange in CARICOM. It was established in 2001, and opened for business in 2003 with 12 companies being actively traded. The GSE is run by GASCI, which stands for the Guyana Association of Securities Companies and Intermediaries Inc. There are now 15 companies registered with Guyana’s stock exchange. Some of the major ones being: Citizens Bank Guyana, Caribbean Containers Incorporated, Demerara Bank Limited, and Rupununi Development Company Limited. All registered companies are local, though overseas companies can list on the exchange.
Trading on the GSE is a little less efficient than larger markets. Only brokers and dealers who are both registered with the Guyana Stock Exchange and who are members of GASCI are permitted to trade directly on the stock market, but anyone may place an order with a broker-dealer to buy or sell stocks and shares.
There are only four firms that are members of GASCI and can trade on the exchange:
- Trust Company (Guyana) Ltd
- Guyana Americas Merchant Bank
- Beharry Stockbrokers Ltd
- Hand-in-Hand Trust Corporation (formerly GNCB Trust Corporation).
To trade on the GSE, you have to contact one of these four Brokers and set up an account with them. Once you have an account, you indicate that you wish to trade by placing an order. Setting up an order may entail calling your Broker and placing that order via phone. The Broker may then require that you deposit the money for the shares you want to purchase (if buying) or submit a share certificate if you’re selling. Once that’s done, they’ll make the trade on your behalf.
Stock prices can be as low as GY$49, which is equivalent to US$0.23 USD or about JM$35.40. Prices go as high as GY$975 (US$4.67 or JM$718), and the dividend yields are as high as 12.5%. However, for now, trading only occurs once a week, on Mondays.
Even as a foreigner, you can invest in the Guyanese Stock Market through a licensed broker. The Government of Guyana encourages and seeks to facilitate persons, either individuals or legal entities, to invest in its stock exchange. You can visit GASCI.com to find more information about the stock trades, companies registered, and regulations of the Guyana Stock Exchange.
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