A rise in the BISX All-Share Index in 2013 has been attributed to investors re-entering the market due to a combination of greater confidence and lower interest rates on fixed deposits available in the banking system.
However, even as this re-entrance of investors into the market came about, share volumes and values fell overall.
In its statistical summary for the third quarter, released on Tuesday, the Bahamas International Securities Exchange (BISX) says the all-share index increased by 17.37 or 1.25 per cent, to settle at 1,406.38 for the nine-month period ending September 30, 2013.
This rise represented a year-to-date increase of 60.12 or 4.47 percent. In comparison, the nine months ending September 30, 2012 registered a year-to-date decrease of 4.17 percent or 56.98.
Holland Grant, BISX listings manager, told Guardian Business that the Bahamian stock exchange is experiencing a similar effect as that which has been occurring in the U.S.
"I think Bahamian investors have been on the sidelines for quite a while because there's been so much bad economic news, but they are finally re-entering the market and as a consequence you would see if not increased volumes, then higher valuations as investors re-enter the market.
"It's also a consequence of what you are seeing in the banking system, fixed rates are at a pretty low level right now so people are looking elsewhere."
As at September 30, 2013 the market was comprised of 27 primary market listings with a market capitalization of $2.998 billion. The primary market securities traded over BISX include 20 common share listings, three preference share listings and four tranches of debt.
For the nine months up to September 30, share trade volume - the number of shares traded during the period - fell by 23 percent in comparison to the same period a year prior. Meanwhile the value of shares traded overall was down by a similar 24 percent.
Trading volume for the nine-month period ending September 30, 2013 was 2,593,994.00 shares for a value of $11,502,887.78. Trading volume for the nine-month period ending September 30, 2012 was 3,401,318 shares for a value of $15,159,585.10.
For the nine-month period ending September 30, 2013 the average daily trading volume was 13,266 shares which resulted in an average daily trading value of $64,035.03. By comparison, for the nine-month period ending September 30, 2012 the average daily trading volume was 22,395 shares for an average value of $96,588.
Referring to the decline in share value/volume, Grant said: "It could be a number of things; it could be that buyers and sellers aren't finding that meeting ground as readily as last year when I think buyers were a bit more motivated."

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