Trading volumes on the Bahamian index dropped sharply in 2011, according to the latest statistical report.
Only 2,899,465 share trades took place last year compared to 10,859,846 in 2010.
A major reason behind the fall on The Bahamas International Securities Exchange (BISX) was the 5,954,600 share trade in Cable Bahamas Limited (CAB) in January 2010 and 1,073,917 share trades at ICD Utilities Limited in December 2010.
Removing these block trades, the number of trades for 2010 would be 3,831,329.
The total value of trades in 2011 was $15,015,550.70.
Keith Davies, the president of BISX, said these numbers "reflect the times we are in".
He expressed optimism that a number of prospects are on the horizon, including the imminent inclusion of shares from APD Limited's highly successful $10 million initial public offering (IPO).
"I think the short answer is we're hopeful," Davies said.
"Every indication shows more activity in the primary market, which should lead to secondary market activity. It's hard to predict how people will trade, whether they will hold on or we'll see movement. If those shares are highly sought you may see some increased activity."
The BISX chief did note, however, that 2011 was a "slow year".
He felt the results were understandable and realistic given the state of the global economy, with many investors holding onto their dollars in self-defense.
When asked by Guardian Business if Bahamas Petroleum Company (BPC) should achieve a BISX listing soon, Davies said the oil firm had made inquiries, but no formal documentation has been received.
"I am not aware of anything formal that has been submitted to us at all," he added.
BPC has made several public statements in recent months on its intention to list shares on the Bahamian index. Davies agreed that once this happens, it could also inspire more trading activity.
Davies reported further progress on constructing the right framework so U.S. corporations can come to BISX to list securities.
BISX achieved Designated Offshore Securities Market (DOSM) status in November of last year.
The index is now taking steps to leverage that recognition, he explained, by providing incentives and putting in the right structures "around which persons can use the designation".
By the end of this year, Davies anticipated BISX will have created "the road map" for DOSM.
According to the annual report, BISX ended 2011 at 1,364.99, which represents a decrease of 8.97 percent. In 2010, the index also experienced a drop of 4.21 percent.
The top five share volume leaders on BISX for 2011 were Commonwealth Bank Limited (CBL), AML Foods, Colina Holdings Limited (CHL), Bank of the Bahamas (BOB) and Freeport Oil Holdings Company Limited (FCLB).
CBL constituted nearly 35 percent of all trade activity last year.

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