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Available data indicates that there has been a significant increase in the number of investors using capital market and stock exchange products and services. The growth is presently an impressive 292%. Investors have grown from 6,495 in 2016 to 25,470 in 2023, indicating that many investors already understand the advantages of the capital market and the stock exchange.
Mozambiquan Stock Exchange (BVM) is in for a revamp to facilitate the listing of more companies, particularly from the small and mid-sized ones. The intention is very clear; to make the exchange a powerful source for mobilizing resources for the companies that are struggling due to scarce resources.
Available data indicates that there has been a significant increase in the number of investors using capital market and stock exchange products and services. The growth is presently an impressive 292%. Investors have grown from 6,495 in 2016 to 25,470 in 2023, indicating that many investors already understand the advantages of the capital market and the stock exchange.
BVM intends, during 2024, to consolidate the gains made in 2023 and open up new and innovative lines of work, with the introduction of innovations in products, services, and financial instruments. It is also working towards an increase in the technological base and regulatory framework. The plan will be fully implemented by 2028, which will have a significant impact on the performance and listing on the exchange.
One of the important objectives of the revamped plan is to attract more SMEs to list in the exchange to help them mobilize the required finances. At the end of 2023, the Mozambican stock market had 84 listed securities, 43 of which were Treasury Bonds, 16 Corporate Bonds, nine Commercial Paper, and 16 companies, representing a growth of 29.23% compared to the securities listed in 2022.
The upward trend in the indicators is reflected in the market capitalization, which rose from 164,287 million meticais (€2.369 billion) in 2022 to 183,825 million meticais (€2.651 billion) in 2023, an increase of 11.89%. BVM’s turnover last year aggregated to 22,190 million meticais (€320 million), a growth of 33.12% compared to the same period in 2022, “reflecting the high number of securities acknowledged for listing with high trading, both in terms of the number of securities and the amounts involved.
The number of securities listed on BVM grew with 26 more securities acknowledged for listing, representing a realization of 260% of the target of 10 securities planned for the year, while market liquidity stood at 12.07%, an increase of 1.96 percentage points compared to the same period in 2022, which was 10.11%.
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In the same period, the Central Securities Depository (CVM) registered 34 securities, representing a realization of 170% concerning the target of 20 securities initially planned for the year, with 707 new accounts having been created at the CVM, bringing the number of existing cumulative accounts to 25,470.
