The Bolsa de Valores de Asunción (BVA), or Asunción Stock Exchange, recorded a total transaction volume of 27.2 trillion Guaraníes (approximately US$3.434 billion) during the first half of 2025 (January-June), showing a significant 25.3% growth compared to the previous year. The financial, industrial, and real estate sectors particularly drove this increase in trading volume, demonstrating robust growth in Paraguay's capital market.

Economist César Paredes, president of Cadiem Fund Management, announced the first-half market results, emphasizing that the Paraguayan stock market is establishing itself as a crucial driver of economic growth. This growth is attributed to the increased demand for corporate financing following overall economic expansion.

Monthly Transaction Volume and Key Sectors 

For the year to date, May recorded the highest monthly transaction volume at 5.01 trillion Guaraníes (approximately US$626 million). The financial, industrial, and real estate sectors, in particular, accounted for the largest share of overall transactions, leading the market.

March saw the largest year-on-year increase, achieving a remarkable 46.5% growth. In contrast, the transaction value in June was 4.32 trillion Guaraníes (approximately US$555.5 million), a slight decrease of 1% compared to the same month last year.

Primary and Secondary Market Status 

In the primary market (issuance market), new securities worth 3.6 trillion Guaraníes were issued during the first half of 2025, an increase of nearly 93% compared to the same period last year. This indicates a significant rise in corporate demand for new capital. The average interest rate in the primary market in April was 14.37%, which is higher than both the previous year's April (13.68%) and the previous month (14.26%).

In the secondary market (trading market), transactions of already issued securities reached 23.2 trillion Guaraníes during the first half, up 17% year-on-year. This suggests continued active liquidity and investment activities by investors.

Banking System Funding Structure and International Environment 

Paredes also discussed the funding composition within the banking system. Deposits account for the largest share at 82%, followed by international loans at 9%, domestic loans at 4%, and bonds (financial and subordinated bonds) at 5%.

Regarding the international environment, he explained that international interest rates have not yet fallen, which encourages an increase in domestic bond issuance. This reflects a trend where companies prefer relatively stable domestic financing.

Second-Half Outlook 

Paredes anticipates that bond issuance will continue across various sectors in the second half of the year, driven by the recovery in the construction and service sectors. Given the constant demand for capital, interest rates are expected to continue their upward trend in the latter half of the year. He also predicted that the strong local currency would reduce pressure on the exchange rate.

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