• gvelez69

Puerto Rico and capital market trends

(Research and publication by Cupeyville students, Fabián Vélez, Julián González, and Guillermo Pérez)


Manufacturing recovers


The Index of Coincident Indicators in Manufacturing (IICM) grew in March to 104.4, a rise of 0.3% in comparison to an equivalent last year. it is the first year-on-year increase in 12 months and therefore the highest reading since 2013.


The Index, prepared by the Office of Economic Analysis and Business Intelligence of the Department of Economic Development and Commerce (DDEC), grew 0.5% in comparison to the previous month and adds 11 month-on-month increases.


In the first nine months of fiscal year 2021, manufacturing activity is 1.5% below the same period of the previous fiscal year. In the first quarter, the value of the IICM increased 1.7% compared to the same period last year. It is the third consecutive quarter on the rise.



Stock market and Crypto trends


Microsoft shares today rose intraday to 265.79, putting its market capitalization at just over $2 trillion. However, the software giant’s stock closed lower, at 265.51, barely missing the threshold of $265.55 needed to consolidate its $2 trillion market capitalization. Apple Inc. is the only company to close with a market capitalization of $2 trillion, a milestone that was first passed last August. Microsoft’s maximum market capitalization during the dot-com bubble was $614.7 billion on December 27, 1999.


Bitcoin fell below the crucial $30,000 threshold on Tuesday, briefly wiping out all its 2021 gains. The world’s largest cryptocurrency rose more than 18% on Wednesday to trade back above $34,000. Bitcoin started the year well but has been on a rollercoaster ride due to a deluge of negative news.





Foreclosures are already the highest since the start of the pandemic

Foreclosures, which fell dramatically with the arrival of the pandemic and therefore the entry into force of moratoriums on mortgage payments, have grown again. In March, 213 homes were executed, the very best number since February last year, consistent with data from the Office of the Commissioner of Financial Institutions (OCIF).


The year 2020 closed with 911 homes completed, 77.9% but the previous year. The figure assumes a mean of 76 homes executed per month. In 2019, 4,117 homes had been executed, a monthly average of 343 homes. The year 2020 closed with 911 homes completed, 77.9% but the previous year. The figure assumes a mean of 76 homes executed per month. In 2019, 4,117 homes had been executed, a monthly average of 343 homes.


In March there have been 10,912 mortgages in foreclosure process, 10.3% less than in the same month last year. The homes within the foreclosure process began in March of last year, at the start of the pandemic. On the other hand, in March there have been 6,475 mortgages in bankruptcy process, 184 but in March of last year, a fall of two .8%


FirstBank approved $742 million in PPP loans


FirstBank announced that it completed 14,488 applications from its commercial clients in Puerto Rico, Florida and the Virgin Islands for $742 million in the two phases of the Small Business Administration (SBA) Payroll Protection Program (PPP). 94% of the loans granted in both rounds are for amounts less than $ 150,000.


FirstBank is already concluding the Forgiveness phase of the first round of loans from the Payroll Protection Program (PPP). Clients may request the forgiveness of their loan at any time before the due date or if they have used all the granted funds for which forgiveness is being requested. Those customers who applied for their PPP loan with FirstBank and have not yet completed their forgiveness request, should visit firstbankteayuda.com/es/sba-condonation to complete the process.




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