The mixing bowl

LUCAS STOCK INDEX The LSI gained 0.40 percent in trading this week on the Guyana Stock Exchange. The stocks of Caribbean Container, Inc (CCI), Demerara Bank Limited (DBL), Demerara Distillers Limited (DDL) and Guyana Bank for Trade and Industry (GBTI) traded during the week. The strong showing of BTI stocks (4.35%) helped to push the index upwards. DDL fell nearly one percent while the stock price of CCI and DBL remained unchanged. Despite the positive movement, the spread between the index and the risk-free Treasuries due to mature in December 2011 remained below 20 percentage points.

Weak

The current administration was aware of the need to push investment in Guyana in an effort to grow the economy and to create jobs, and was engaged in several courses of action to achieve economic diversification through investment.  Capital works involving roads, bridges, hospitals, schools, airports, and sea defence were the preference of the administration.  The outcome is a mixed bag that leaves many Guyanese confused and dissatisfied since they are still unable to benefit from these investments with many roads sinking, school buildings still to be fixed, bridges collapsing and wharves floating away.  The sectors of focus for the administration were reportedly rice, sugar, forestry, tourism, manufacturing, non-traditional agricultural products, fisheries, mining and petroleum, and information and communication technology.  Many of these sectors remain weak and continue to struggle to establish themselves as relevant and important agents of the Guyana economy.  The sugar industry is in confusion and manufacturing keeps going around in circles.  The willingness of the administration to pursue certain investment and development policies was induced in part by domestic politics and international pressure that