Ecuador stock market shows big gains

Ecuador’s stock market has posted a 24% gain through the first three quarters of 2013 and financial experts say the gain will top 30% by the end of the year.

The small Guayaquil- and Quito-based exchange says that the cash value of trades for its 47 public companies increased from $112 million to $139 million since January. The exchange says it believes that gains will continue in 2014 as new tax breaks for foreign investors take effect.

The largest gains on the market were posted by dairy product producer Tonicorp, S.A., and Corporación Favorita, C.A.

Tonicorp sold a majority interest to the Mexican company Arca Continental, Latin America’s largest Coca Cola bottler, earlier this year. Corporación Favorita owns Supermaxi and Gran Aki supermarkets, SuCasa home supply stores and Radio Shack Ecuador, among other retail outlets.

Beginning in 2014, foreign investors in Ecuador’s stock market will be exempt from the country’s 5% exit tax for funds wired out of the country, if money remains in the country for 12 months.

Photo caption: Supermaxi supermarkets are owned by Corporacion Favorita.