The South Pacific Stock Exchange (SPX) highlighted notable trends in its recently released Stock Market Review 2024, revealing that a significant 73.81% of sell orders were indicative of profit-booking strategies, while only 26.19% of orders were purchases. This trend was among several challenges the exchange faced throughout the year.
In 2024, SPX experienced a massive surge in trading activity, with weekly new order flows averaging $1,110,479, marking an impressive increase of over 320% from 2023. This surge aligned with an overall better market performance, signifying growing investor awareness in Fiji’s stock market. The average bid-to-offer ratio slightly improved to 1:20 from 1:21 in 2023, suggesting a healthier supply situation compared to previous years.
As of early this year, the SPX reported an unexecuted order list displaying a striking imbalance with 1.573 million shares available on the supply side against just 57,269 on the demand side, further emphasizing the ongoing profit-taking behavior among investors.
SPX characterized the market’s performance as resilient, underscoring growth potentials driven by macroeconomic recovery. The exchange expressed confidence that strategic initiatives, including Initial Public Offerings (IPOs) and Dividend Reinvestment Plans (DRPs), will deepen market engagement and liquidity going forward.
Looking ahead to 2025, there is an air of optimism within the SPX as it prepares to embark on key development projects intended to enhance Fiji’s market landscape. The exchange aims to foster greater participation from local companies in capital-raising activities and bolster public awareness of investment opportunities.
This encouraging outlook is reinforced by the exchange’s achievements in the previous year; 2024 marked a historic high with SPX companies distributing a record $76 million in dividends, highlighting the financial vibrancy of the market. As more businesses look to capitalize on these opportunities, Fiji’s stock market positions itself for sustained growth and economic development, offering hope and potential for investors and companies alike.
Overall, the market’s trajectory appears promising, with key indicators suggesting potential for increased investment participation and a vibrant economic environment in Fiji’s financial landscape.
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