Market capitalisation increased, rising from 102,139 million Meticals in December 2019 to 107,862 million Meticals in June 2020, representing growth of 5.6%, influenced by the dynamics of Treasury bonds.
This variation was lower than the 15.8% recorded in the same period of 2019, when the indicator rose from 85 339 million Meticais in December 2018 to 98 835 million Meticais in June 2019.
Data from the Mozambique Stock Exchange, cited by the Bank of Mozambique, in Financial Stability Report 2020, detailed that treasury bonds accounted in the first half of the year under review for about 66.5% (59.1% and 60.6% in June and December 2019, respectively) of market capitalisation, signalling the growing weight of the state in the securities segment.
“This scenario increases the sovereign risk to which holders of these securities are subject, with particular emphasis on those in the banking and insurance sectors, similarly influencing systemic risk and financial stability in general,” the document reads.
In relation to the volume of transactions by category of securities, the Bank of Mozambique report said that treasury bonds again recorded the highest weighting in the first half of 2020, with about 93.6 percent of the total, with equities and corporate bonds completing the ranking, with 3.8 percent and 2.6 percent, respectively.
