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“Market Capitalization Increases, and by the End of the Year There Will be More Companies Listed on Stock Exchange,” Ensures Salim Valá

“Market Capitalization Increases, and by the End of the Year There Will be More Companies Listed on Stock Exchange,” Ensures Salim Valá

The Chairman of the Board of the Mozambique Stock Exchange (BVM), Salim Valá, announced this Friday, August 5, that the market capitalization should continue to grow in the next few months, increasing from the current 19.4% to a little more than 20%, this until December of the current year.

During the “Business Cycle – BVM” it was also revealed that in the coming months “there will be news” at the level of listed companies, and it is expected that two or three more companies will join the list of listed companies.

“Our projections indicate that we can, by the end of the year, significantly exceed the 20% range of market capitalization. This seems like a small ratio, but we have to remember that in 2016, our market capitalization was only 8%. Today, we are already at 19%, so we have 11 listed companies. In 2016 there were only four companies listed on the stock exchange, and there have been 13, but two companies were excluded from the market for not providing information to the standards required by the capital market, which only testifies in favor of the procedures we have been implementing,” explained Salim Valá.

The CEO of BVM, also pointed out in his speech that “the market is dynamic and that still this year, two to three companies will be listed until the end of December, increasing from 11 to 14 or 13 companies”, and revealed that the volume of business is currently around “9,470.04 million meticais”, and that the liquidity index is situated at 7.28%, with 220 titles registered in the Central Securities Depository (CVM).

This information was shared during the “Business Cycle of the Stock Exchange Market”, an event organized by the Mozambique Stock Exchange, which brought together all participants of the Capital Market, in order to listen to the participants of the Capital Market (Stock Exchange Operations and Central Securities Depository- CVM), to transmit knowledge about the operational procedures in force in the BVM with emphasis on the advantages of access to the Central Securities Depository; as well as to reflect on the procedures and operational mechanisms of the stock exchange operations and CVM.

In the same vein, the Mozambique Stock Exchange signed a memorandum of understanding with the Association of Trade, Industry and Services (ACIS), the formalization of the relationship between the two institutions aims to open space for more companies to enter the stock market. “ACIS is a relevant player in the national economic panorama and a significant part of the companies listed in the Stock Exchange operates in the services area”, Valá emphasized.

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For his part, Luís Magaço Júnior, President of the Association of Commerce, Industry and Services (ACIS), believes that the memorandum will pave the way for ACIS to bring companies to the Exchange and the Exchange to the companies.

“Our intention is that our companies affiliated to ACIS find innovative financing alternatives that do not necessarily go through the banking system and in this sense the capital market is an excellent mechanism to boost the national business fabric”, he concluded.

Translated with www.DeepL.com/Translator (free version)

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