The first two months of the year, January and February, despite the differences between them, were also marked by strong activity, with turnover reaching 766.9 and 205.01 billion kwanzas, compared to the same period of the previous year
The Angolan Debt and Stock Exchange (BODIVA), achieved, in the first 15 days of March, transactions in the order of 109.3 billion kwanzas, according to Dashboard data from the aforementioned institution. BODIVA’s current balance sheet reveals the existence of 29 thousand and 34 custodial accounts (a number used to measure the volume of investors), a decrease of 1396 accounts compared to the beginning of the year.
Stock exchange data shows that more than 90% of operations were conducted bilaterally, totaling 101.2 billion kwanzas, while multilateral business reached around 8.2 billion kwanzas. The first two months of the year, January and February, despite the differences between them, were also marked by strong activity, with turnover reaching 766.9 and 205.01 billion kwanzas, compared to the same period last year. last year. It is important to remember that last year business at BODIVA, in the month of January, was 95.5 billion, while in February the turnover was 63.1 billion kwanzas.
Increase in inflation and reduction in credit In reaction, economist Eduardo Manuel considers that the main factors that generated the increase in negotiations at BODIVA, during the first 15 days of March, are the increase in inflation and the decrease in credit investment granted by commercial banks. This, he continued, led to companies being unable to obtain funds through revenue and bank credit, which led them to turn to BODIVA to obtain funds outside the banking market. Regarding the decrease in the number of accounts held in custody since the beginning of the year, Eduardo Manuel highlighted that this reduces the capitalization of the Angolan financial market, due to the fact that companies are more limited in accessing BODIVA, to finance themselves outside the financial sector.
Regarding the relevance of the predominance of bilateral negotiations in relation to multilateral ones, the economist emphasized that they make BODIVA negotiations more restricted to certain countries. This makes BODIVA’s diversification and liquidity more dependent on the countries covered by bilateral agreements. In the case of multilateral negotiations, the opposite happens: They allow, in the economist’s view, to further diversify the liquidity of the Angolan stock market and do not make BODIVA, from an institutional and business point of view, dependent on a single country. Eduardo Manuel called on BODIVA to diversify institutional agreements internationally, to increase the supply of investors and companies present in the market.
“Custodial accounts should be increased, access requirements should be reviewed, in order to allow the entry of Micro, Small and Medium-sized Companies and national and foreign investors of various profiles, from different countries around the world”, he considered. According to BODIVA, last year was the year with the highest financial volume historically moved on the Angolan stock market in kwanzas, in more than 5 thousand transactions valued at 7.8 billion, driven by the issuance of Sonangol’s corporate bonds and combined with the performance of National Treasury, which at a certain point in the year carried out some debt repurchase, purchase and sale operations to extend its maturity.
BY: Francisca Parente