BVM highlights Progress in Stock Market Indicators in the 4th Quarter of 2023

The President of the Mozambique Stock Exchange (BVM)

, Salim Cripton Valá, was one of the speakers at the fifteenth edition of the Economic Briefing, promoted by the Confederation of Economic Associations of Mozambique (CTA), held on February 22nd of this year, in Maputo. Valá stated, in his speech, that restrictive monetary policies continued to condition credit to the economy, in a context in which high interest rates make credit expensive for the business sector, highlighting that the capital market can be part of the solution to the problem .

The President of the BVM, who focused on "The Dynamics of the Stock Market in the IV Quarter and Annual Balance of 2023", did not fail to highlight, positively, the fact that, at the beginning of this year, the Monetary Policy Committee of the Bank of Mozambique has lowered the MIMO rate to 16.5%, "which opens up good prospects for the country, in general, and for the business sector, in particular".

Valá also said that, in the fourth quarter of 2023, there was an evolution of the main stock market indicators, including turnover, market capitalization and the liquidity index, which registered notable growth.

With regard to listed companies, the year 2023 was marked by the admission to listing of four companies - Weiyue, Zaya Group, Trassus and RGS Agro - in addition to the paradigmatic situation of the company Rede Viária de Moçambique (REVIMO), which was the first to move from the Third Market to the Official Quotations Market, as highlighted by the BVM PCA.

Companies in the financial sector continue to be those that most resort to financing via the stock market, "perhaps because they are the ones that best understand the functioning" of the capital market, but other companies can also move in that direction.

Valá said he believes that the business incubator launched by CTA can contribute to the expansion of companies that are financed through the capital market. In fact, it is for this and other factors that the BVM predicts that the number of companies listed on the BVM will rise to 30 by the end of 2028, that is, in the next four years.

"In summary, Mozambique's economic growth has good prospects, but is still below its potential", highlighted Valá.

On the occasion, the president of the CTA, Agostinho Vuma, revealed that the trend of the Business Robustness Index (IRE) for the fourth quarter of 2023 was a slight improvement of 1 percentage point, having stood at 30%, against 29% in the quarter previous. "As for the macroeconomic environment, the CTA explains that "it has improved, reflected in the increase in the respective macroeconomic index, from 42% in the third quarter of 2023 to 47% in the fourth quarter of the same year. This improvement reflects the reduction in the inflation rate and the continuation of exchange rate stability".

It should be noted that the opening ceremony of the Economic Briefing, in which the National Business Robustness Index was presented, was chaired by the Permanent Secretary of the Ministry of Economy and Finance (MEF), Domingos Lambo, on behalf of the Minister of Economy and Finance, Ernesto Max Tonela.

Event Photos

• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]