The president of the Mozambique Stock Exchange (BVM), Salim Valá, presented an analysis of the dynamics of the stock market last Thursday, 22 February, during the Economic Briefing on the “Performance of the Business Sector and Economic Outlook”, covering the fourth quarter of 2023, in which he pointed out the positive performance of the institution.
“Analysing the fourth quarter of 2023 compared to the previous quarter, we can see the positive evolution in all the stock market indicators, in particular the rise in financing to the private sector (47.9%), the evolution in the number of corporate debt issues (25%) and the number of listed shares (23.1%), the growth in turnover (14.7%) and the liquidity index (11.4%), all of these with double-digit growth rates,” said the head of BVM.
The source explains that the last quarter was particularly marked by the growth in the number of companies on the stock market. “In the first quarter of the year, 750,000 Series B shares of Mozambique Weiyue International Holding, SA (WEIYUE) were listed, which became the 15th company listed on the stock exchange (two of these companies were delisted for failing to fulfil their duties to inform the market and investors), so that by November 2023, BVM had 13 listed companies. At the end of the year, three more companies were listed, all of them on BVM’s third market, namely Zaya Group (Poultry Industry, two million shares), Trassus (Furniture Trade, 20 thousand shares) and RGS AGRO (Sugar Industry, five million shares). This is how 2023 ended with a cumulative 16 listed companies, a 25 per cent increase on the number of listed companies at the start of 2023,” says Salim Valá.
In its analysis of the year 2023, BVM states that it ended with all the stock market indicators positive, confirming the upward trend in all the quarters of the year and the achievement of the targets set by the institution.
According to the analysis, market capitalisation rose from 164.2 billion to 183.8 billion meticais (11.9%), the ratio of market capitalisation to GDP rose from 24.05% to 25.82% (7.4%), turnover rose from 16.6 billion to 22.1 billion meticais (33.1%), the liquidity index rose from 10.15% to 12.07% (18.9%), the number of listed shares rose from 12 companies to 16 (33.3%), the number of listed securities rose from 65 to 84 (29.2 per cent), total financing for the economy rose from 271.5 billion to 333.2 billion meticais (22.7 per cent), with particular emphasis on financing for the private sector, which rose from 47.9 billion to 73.4 billion meticais (78.6 per cent), and the number of securities and holders at the Central Securities Depository rose from 239 to 274 securities (14.6 per cent) and from 24,763 to 25,470 holders (2.9 per cent), respectively.
“The good results achieved in 2023 express not only the good performance of the stock market, but particularly the growing use of the capital market by entrepreneurs and investors operating in Mozambique, a trend that challenges the CTA to continue and deepen the work underway so that the companies affiliated to it make greater use of this financing, savings and investment alternative in the future,” warned Salim Valá.
The head of BVM added that during 2023 we should highlight the performance of an important short-term financing instrument for companies, called Commercial Paper, representing Corporate Debt up to one year in maturity, which has the special characteristic of being issued by both public limited companies and private limited companies.
“In 2023, we had Commercial Paper issues by four different entities – Banco BiG, BayPort, Banco MyBucks and First National Bank – which together made nine issues, totalling 2.7 billion meticais at a weighted average interest rate of 17.3%. The use of this short-term financing instrument is a positive sign for the market and we believe that this trend will continue throughout 2024,” said the source.
Furthermore, continued Salim Valá, the trend of previous years continued during the year, with Treasury Bonds dominating, followed by Corporate Bonds, Commercial Paper and Shares. The stock market traded 53.6 million meticais, with shares in HCB, CMH, CDM, Arko Seguros, Tropigalia and Emose standing out.
Finally, Valá explains that during 2023, the Central Securities Depository, of which the BVM is the managing entity, was responsible for processing 196 corporate events, including 142 interest payment events, seven dividend payments, eight capital amortisations, one share capital increase, two changes in nominal value and the registration of 35 new securities.
