Mozambique Stock Exchange registers positive performance despite crisis – Carta

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Mozambique Stock Exchange registers positive performance despite crisis – Carta

11:08 CAT | 22 Nov 2021

The Mozambique Stock Exchange (BVM) is not immune to the negative impact of the Covid-19 pandemic, but Chairman of the BVM Board of Directors, Salim Valá, said this Wednesday that the institution had recorded positive results in several stock market indicators since December 31, 2019.

Speaking at a presentation of the institution’s performance, Valá reported that the main stock market indicator – stock capitalization – grew 16.5% from 102 billion Meticais to 118.9 billion Meticais. The market capitalization ratio, which currently represents 17% of Gross Domestic Product (GDP), grew by 17.8% compared to 15.5% at the end of 2019.

According to the BVM chairman, turnover grew by 66%, from 5 billion Meticais at the end of 2019 to 8.5 billion Meticais today. Market liquidity index rose from 44.2%, from 5% in 2019 to 7.2% in November, 2021.

Vala also noted that the global funding to the institution’s economy grew 73%, evolving from 124.7 billion Meticais in 2019 to the current 216.8 billion Meticais, which corresponds to more than US$3.3 billion. Securities registered with the BVM Central Securities Depository increased by 27% during the period in question.

“The only indicator that showed a negative evolution was the number of securities listed on the BVM, down 2.3%, given that in 2019 there were 57 securities listed and, currently, we have 56,” Valá said.

Three new companies were listed under BMV’s ‘third market’ initiative during the period in question, namely, REVIMO, 2Business and PayTech. In relation to the newly listed companies, BVM’s chairman acknowledged the initiative taken in the middle of the pandemic crisis for the companies to seek financing. Valá appealed to other companies and organizations to list their securities on the BVM, highlighting among others as possible candidates football clubs and mining companies.

At the ceremony, BVM awarded three financial institutions for their contribution to the stock market. These are the Commercial and Investment Bank (BCI), Absa Bank Mozambique and MyBucks Banking Corporation.

The BVM also launched a new electronic application to facilitate access to the institution’s services and products, anywhere and at any time.

By ´Evaristo Chilingue

Source: Carta de Moçambique