The Chairman of the Board of Directors of the Mozambican Stock Exchange, Salim Valá, believes that the capital market can bring an added value in the Mozambican economy and in the promotion of entrepreneurship, as it is still being little used as a source of alternative financing by companies.
Speaking during the 3rd edition of the ABSA “Affluent Quick Talks”, a virtual event promoted by ABSA and which was under the theme “Investment in the Capital Market: Challenges and Opportunities”,
Valá added that because BVM is small in size, with little liquidity and depth, there is plenty of room for growth, innovation and expansion in the next 20 years.
During his speech, the CEO of BVM focused on the most relevant aspects concerning investment in the capital market, highlighting the important achievements of the last few years, the impact of the economic crisis exacerbated by the Covid-19 pandemic and the challenges and opportunities.
In his address, he highlighted the existing investment options, why invest in the stock market, what are the risks of such investment, the behaviour of the stock and bond markets, what to know before investing in the stock market, how to buy shares listed on the stock market, how an investor can monitor the execution of his order, penalties upon disinvestment, and the companies listed on the stock market and the main trends.
On the BVM investment options, Salim Valá highlighted the products traded on the stock exchange, namely shares, bonds and commercial paper, but that with the evolution of the market there may be a greater offer (“green bonds”, “blue bonds”, income bonds, certificates of deposit, among other instruments).
On Stock Exchange investment, he focused on the advantages of diversification, profitability, tax advantages, the personal prestige of being a shareholder of large companies and large projects, but also highlighted the several types of investment risks, common to many investment modalities, but that these risks may be minimised with a greater knowledge of the market and of the companies by the investors, also mentioning that one of the risks considered (the economic crisis risk) is the one that currently justifies the decrease in the stock market value.
At the level of the investor, Salim Valá highlighted the importance of individual savings for investment in the stock market, of knowledge about the companies where one wants to invest, of how investment should be gradual and diversified, and emphasised that shares are essentially a long-term investment.
The Chairman of BVM ended his presentation by stating that investing in the stock market has advantages and risks, and that threats and crises can be sovereign investment opportunities, it being essential to create specialised services for the production and dissemination of stock market information to the market and investors.
He exemplified that there are companies that are growing fast in a context of economic crisis, such as those linked to health, technology, food production, production and distribution logistics, and financial services.
