BODIVA clarifies to the press that the new design of the capital market has opened the door to the emergence of new brokers and that SME obligations may be covered by the Credit Guarantee Fund (FGC)
Individuals are those who make the most investment on the stock exchange, representing 47% of the trades carried out on the Angolan Debt and Stock Exchange (BODIVA), in 2023, according to data provided yesterday by those responsible for that entity during the meeting with journalists . Financial intermediaries, banks and brokers represent 39.5% of the business carried out in the period, while companies represent only 12% of the total business carried out.
On the other hand, explained Raúl Diniz, from BODIVA’s Negotiation Department, in terms of volume, companies negotiated a value much higher than the amount negotiated by individuals. In addition to this, from 2022 to 2023, the amount traded on BODIVA grew by more than 346%, reaching 6.9 billion kwanzas, despite the 19% drop in the number of businesses that were positioned in a total of 4651 businesses, as per the data presented.
Eight new proofreaders
Regarding the new configuration of the capital market, more specifically on the issue of the exit of commercial banks from intermediation activities, BODIVA explains that this new configuration has already resulted in the emergence of eight new entities. Entities such as Standard Invest, Aurea SDVM, BFA SD VM, Inovadora SDVM, Prospectum SDVM, Prime SCVM, Standard SCVM, Resultados SCVM and Lucrum SCVM have been registered since 2022, and which, moreover, show that this advance will open a window of opportunities, whether for entities or for the quality of services.
Asked regarding the fact that banks are creating brokerages, BODIVA representatives explained that in the end there will be a separation between what is a bank and what is a brokerage, allowing specialization, without forgetting the Homebrokers with the new brokers that will facilitate access to the market for small investors.
BODIVA clarifies that it only deals with issues related to the operation, referring regulatory issues to the Capital Market Commission. It is important to note that the data presented refers to December 1st of the current year.
FGC can guarantee bonds issued by SMEs
Created in October 2023, BODIVA’s Small and Medium Enterprises market segment does not yet have any registered entity. Reflecting on the subject, Raul Diniz said that there are many factors that contribute to this, but from BODIVA’s perspective, poor financial literacy is indeed the most glaring cause, which is why he calls for joint work with the media.
A work aimed at making businesspeople realize that, for example, they can finance themselves, more cheaply, with a lower interest rate than banks offer and with greater control, allowing better cash flow in the capital market. BODIVA is fully aware that investors are looking for certainty and the lowest risk, which is why work was carried out with the Credit Guarantee Fund (FGC), so that bonds or shares to be issued by SMEs can have a guarantee of up to 75% of FGC.
In addition, and looking from another perspective, mechanisms were designed to make life easier for SMEs when entering the stock market, with the possibility of having their accounts reviewed by an accounting expert instead of an auditing company, which would imply greater cost, for example.
BY: Ladislau Francisco
