The Mozambican Stock Exchange (BVM) had a positive performance in the second quarter of the current year
,confirming the growth trend that has been showing since last year.
The information was released on Thursday, August 3, 2023, by the Chairman of the Board of Directors (PCA) of BVM, Salim Cripton Valá, during the XIII Edition of the Economic Briefing, an event organized by the Confederation of Economic Associations of Mozambique ( CTA).
“The second quarter of 2023 was positive in almost all indicators, confirming growth in 2023 as higher than that of the 2nd quarter of 2022. The following indicators stood out: Turnover (+103.2%), Liquidity Ratio ( +94.4%) and Market Capitalization (+4.7%)”, revealed Salim Cripton Valá.
It should be noted that the stock market, in the period in question, was on the rise, with three companies, namely, Companhia Moçambicana de Hidrocarbonetos (CMH), Hidroelétrica de Cahora Bassa (HCB) and Tropigalia distributing dividends totaling 327.8 million of meticais. Companies issuing Corporate Bonds paid interest totaling 30.4 million meticais, at an average interest rate of 18.77%.
In another development, the President of the Confederation of Economic Associations of Mozambique, Agostinho Vuma, made it known that, in the second quarter of 2023, business performance showed a stationary trend, with the robustness index (business) remaining at 28 percent.
The following factors contributed to this trend, according to Agostinho Vuma, among others: “(i) on the positive side, the beginning of the agricultural marketing campaign, the beginning of the export season for products such as cotton and shrimp and (ii) on the negative side, the slowdown in the performance of the tourism sector, mainly in provinces such as Inhambane, Gaza and Manica, as well as the drag on of the effects of the weather events in the first quarter”.
On the occasion, the Mozambican Stock Exchange (BVM) and the National Federation of Agrarian Associations of Mozambique (FENAGRI) signed a memorandum of understanding, which aims to promote actions aimed at attracting companies from the agrarian sector to the BVM, the improvement of the business environment, increase of business opportunities, as well as the provision of timely and timely financial and economic information, to the benefit of companies in the agrarian sector.
It should be noted that, within the framework of the reforms aimed at attracting more companies, the BVM will introduce new financial instruments such as Sustainable Financing Bonds and Municipal Bonds, products that will, according to the PCA of the BVM, give new impetus to the Mozambican capitals.
The XIII Edition of the Economic Briefing, a one-morning event, addressed the performance of the business sector in the second quarter of 2023 and the short and medium-term economic prospects.