Mozambique: Stock market expects more companies to list this year

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Mozambique: Stock market expects more companies to list this year

11:40 CAT | 19 Aug 2024

FILE - For illustration purposes only. [File photo: Lusa]

The chairman of the Mozambique Stock Exchange (BVM), Salim Valá, said today that it is “foreseeable” that new companies will be acknowledged for listing by the end of the year to join the 16 currently traded.

“Several companies have communicated to the BVM this year their intention to be listed, and are currently in the adaptation and preparation phase, so it is expected that we may have some companies listed by the end of the year,” Valá said in an assessment of the stock exchange’s activity in the first half of the year.

At the beginning of 2023, the BVM had 12 listed companies, and over the course of the year saw four more join the portfolio, such as the WEIYUE (consulting and management), Zaya Group (poultry industry), Trassus (furniture trading) and RGS AGRO (sugar).

“Our experience teaches us that the growth of the stock market cannot be exclusively dependent on the voluntary choice of companies, but must also rely on the state’s inducing role. Companies of high economic relevance in the country must contribute to the growth of the market,” Valá stressed.

Valá also argued that “healthy companies” in the state business sector, companies required to open their capital, banks, insurance companies, mobile phone operators, cement companies, extractive industry companies and other companies that exploit natural resources “should be admitted to listing”, even if only “for a minimum percentage of their share capital”.

Source: Lusa