Africa-Press – Mozambique. Attracting foreign investors, getting large Mozambican companies listed and allowing small and medium-sized enterprises (SMEs) access to the stock market are the priorities set by the Mozambique Stock Exchange (BVM) for this year.
“The main indicators of the stock market experienced notable growth during 2023, even in an economic context that still inspires a lot of caution, and companies are still depressed after being battered by successive years of crises and internal and external shocks,” BVM president Salim Valá told Lusa.
He added that entrepreneurs and investors now realise “that BVM is not only a financing alternative, but also an investment mechanism”.
“According to data from the Central de Valores Mobiliários, there has been a significant increase in the number of investors using capital market and stock exchange products and services, with a growth of 292%, from 6,495 investors in 2016 to 25,470 investors in 2023, indicating that many investors already understand the advantages of the capital market and the stock exchange,” says Valá, recognising the “growing trend for Mozambican savers to invest their savings in securities listed on the BVM”.
“It is within this economic context of the country that BVM intends, during 2024, to consolidate the gains made in 2023 and open up new and innovative lines of work,” he further explains, detailing among the objectives the introduction of “innovations in products, services and financial instruments” and the increase in the technological base and regulatory framework.
Likewise, the Mozambican stock exchange plans to start operationalising its Business Plan and Strategic Plan this year, both to be implemented by 2028,” to increase operational performance and economic results and improve the company’s management and governance mechanisms.”
It will also “promote inter-institutional partnerships, open BVM up even more to the world and attract more foreign investors” while advancing “an intervention strategy that allows large companies to list on the stock exchange and more SMEs to finance themselves via the capital market and stock exchange.”
At the end of 2023, the Mozambican stock market had 84 listed securities, 43 of which were Treasury Bonds, 16 Corporate Bonds, nine Commercial Paper, and 16 companies, representing a growth of 29.23% compared to the securities listed in 2022.
The upward trend in the indicators is reflected in the market capitalisation, which rose from 164,287 million meticais (€2.369 billion) in 2022 to 183,825 million meticais (€2.651 billion) in 2023, an increase of 11.89%, Valá said.
BVM’s turnover last year totalled 22,190 million meticais (€320 million), a growth of 33.12% compared to the same period in 2022, “reflecting the high number of securities acknowledged for listing with high trading, both in terms of the number of securities and the amounts involved”.
The number of securities listed on BVM “grew with 26 more securities acknowledged for listing, representing a realisation of 260% of the target of 10 securities planned for the year, while market liquidity stood at 12.07%”, an increase of 1.96 percentage points compared to the same period in 2022, which was 10.11%.
In the same period, the Central Securities Depository (CVM) registered 34 securities, “representing a realisation of 170% in relation to the target of 20 securities initially planned for the year, with 707 new accounts having been created at the CVM, bringing the number of existing cumulative accounts to 25,470”.
“The listing of four new companies, all on the Third Stock Market, resulted in a total of 20,475,000 new shares on the stock market, representing a weight of 0.371% in the market’s market capitalisation,” concluded Salim Valá.
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