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Salim Valá: “Capital Market Grew Moderately in Q1 2023”

Salim Valá: “Capital Market Grew Moderately in Q1 2023”

The Chairman of the Mozambican Stock Exchange (BVM) said in his latest balance sheet report that the world will grow at a slower pace than in the last two decades, at a level of 3 percent, and poor countries may become more indebted, with higher fiscal deficits and more fracturing social problems.

According to the same, the outlook for the economy in 2023 is moderate and conditioned by the evolution and intensity of the conflict in Ukraine, by lower food production as a result of the heavy rains in 2022, by inflation trends and exchange rate stability of the metical.

Even with these constraints, the Chairman revealed that the Mozambican capital market grew moderately in the first quarter of this year, compared to the same period last year.

According to the source, the existence of a more restrained fiscal and budgetary policy may help central banks to slow the pace of interest rate rises, which along with increased productivity, may contribute to reducing the risk of financial turbulence, contain inflation and stabilise the economic situation of poor countries.

“In the first quarter of 2023, the In the 1st quarter of 2023, the analysis of stock market indicators compared to the same period of 2022 observed a positive development, as follows: turnover increased (81.7%), corporate debt issues (50%), market liquidity ratio (37.7%), public financing (33.2%), market capitalisation in absolute terms (31.9%), ratio of market capitalisation to real GDP (28.8%), financing of the economy (27.9%), number of listed securities (20%), number of listed shares (18.2%) and securities registered with the Securities and Exchange Commission (15%),” explained Salim Valá.

At the stock market level, the source stressed that there were 44 corporate events, of which 34 referred to the payment of interest, three to capital repayments and seven to new issues.

“There was an admission to listing of a new company, and in the Corporate Debt market there was no issue of corporate bonds, let alone commercial paper. The treasury bond market registered the entry of two new issues, for a total amount of 1.7 billion meticais at a weighted average rate of 19.0%. In terms of interest payments the treasury bonds paid a total amount of 5.3 billion meticais, followed by corporate bonds which paid 292.4 million meticais”, he said.

Salim Valá noted that the 1st quarter of 2023 was marked by the listing of 750,000 Series B shares in the “Mozambique Weiyue International Holding”, SA, on 20 March 2023, which became the 13th company listed on the Exchange. This company operates in the field of investments in renewable energy, provision of services and in the financial area.

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