TH interest rates remaining at a 12-year high there has been a sharp decline in the general activity seen on the Jamaica Stock Exchange (JSE) as buyers retreat and sellers seek cash.
There has been a flood of new investors in the equity markets over the last four years, following several highly touted public offerings and people seeking greater returns on their money. This resulted in a lot of market liquidity, which describes the ease with which one can sell an asset and get cash.
However, the rise in interest rates has started to have a noticeable effect in the markets as fewer buyers seek to purchase stocks and more persons seek to sell their equity stakes. This rise in supply and reduction in demand has in turn translated into reduced prices and lower trading value for equities on the JSE
https://www.jamaicaobserver.com/business/adios-market-liquidity-headed-elsewhere-as-interest-rates-remain-high/
An example can be reference
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