Monthly Archives

July 2019

BVM Evaluates Its Medium Term Strategic Plan (2017-2021)

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On July 24 of the current year, the Mid-Term Review of the BVM Strategic Plan (2017-2021) was held in Maputo. Where the state of play of actions and initiatives developed by the BVM and the follow-up of the activities to be carried out were presented. carry out by 2021, including the exercise of identifying the aspects to be improved in order to boost the stock market in Mozambique.

On the occasion, the BVM PCA, Salim Cripton Valá informed that of the 22 initiatives of the Strategic Plan, 11 were carried out and concluded with positive results (50%), 10 are still ongoing (45%), and one (1) started but is on time, representing 5%.

It also highlighted some indicators, namely the fact that 9 companies are listed, thus experiencing a 125% growth over the last two years, the market capitalization is 103,066 million MT (U $ D 1,657 million), the market capitalization ratio stands at 10.1% of GDP and projected to 21% by 2025. The average of the last two years of turnover was 3,900 million MT, the BVM financed the economy of 119,184 million MT ( $ 1,916 million), and to date 154 titles are listed.

On the occasion, Valá announced that BVM will have the Stock Exchange Index, and that it will be useful for investors, because it will allow them to follow the behavior and trends of the stock market. “The stock index helps gain greater national and international exposure, broadens the visibility of the stock market, attracts foreign investors to the stock market, and will bridge a gap in compliance with the SADC Finance and Investment Protocol.” Other exchanges such as Johannesburg, Namibia, Zimbabwe, Malawi, Tanzania, Botswana, Zambia and Mauritius, for example, already have stock indices, ”Valá added.

Investors and other economic agents will have IBVMGlobal, IBVMAcções and IBVMObrigações available on a daily basis. This way, the Mozambican and non-resident investor will have relevant and up-to-date information on the market, as has long been the case with users of the New York, London, Tokyo, Hong Kong, Shanghai, Johannesburg stock exchanges, among other financial markets. of reference.

In turn, FSDmoc Executive Director Esselina Macome reiterated that FSDMoç’s support to BVM has been made possible by funding from the British and Swedish Governments, which demonstrate their commitment to capital market development and is a priority on the agenda. donor vision and programs, improve levels of financial inclusion in the country by establishing partnerships and strategic interventions that promote greater inclusion of disadvantaged / excluded groups, specifically women, youth, small-scale producers and micro , Small and Medium Enterprises.

“In collaboration with the BVM, we have observed a proactive nature of this institution, and for this reason, I would like to commend the progress made in the last two years since the launch of this instrument, especially the dissemination campaigns, the review of SME listing requirements. and the increase in the number of companies listed on the stock exchange ”. said Esselina Macome.

In another development, Kabir Ibrahimo, CTA Vice President who spoke on behalf of CTA, praised BVM’s progress, but suggested legal reforms to allow greater adherence to the Stock Market. For CTA, it has been noted that SME adhesion to the Second Market is still very weak, and pointed out as a cause of this the low level of financial education and the weak corporate management capacity of companies.

According to Hibrahimo, the costs of admission, readmission and maintenance of securities on the stock exchange, the taxation regime applied to transactions carried out in this market segment, can create a disincentive for SMEs to join the stock exchange, mainly because the cost and taxation variables constitute generally one of the main obstacles to the development of the Mozambican private sector.

However, the CTA proposes the implementation of some reforms, such as the revision of the BVM Second Market Regulation, no. 2 / GPCA / BVM / 2010), to allow the reduction of fees, as well as the revision of Articles 57 and 67 of IRPC code and IRPS respectively, to allow for the introduction of a special tax regime for the second market which guarantees the reduction or exemption from the payment of the liberalization rate in transactions carried out in this market segment.

On behalf of the Ministry of Economy and Finance, Rogério Nkomo said that the actions taken by BVM are aligned with the objectives set out in the government’s strategic instruments, namely the Strategy for the Development of the Financial System 2013-2022 and the National Strategy for Financial Inclusion. 2016-2022. “The capital market is making a significant contribution to the country’s economy by promoting actions and initiatives.

Source:
http://www.bvm.co.mz/index.php/en/publications-and-events/highlights/1833-bvm-evaluates-its-medium-term-strategic-plan-2017-2021

JSE now offers historical tick data in the cloud

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Driving enhanced efficiencies and convenience

Johannesburg, 26 June 2019The Johannesburg Stock Exchange (JSE),Africa’s largest, multi-asset class stock exchange, now offers historical equity; equity derivatives and currency derivatives tick data in the cloud, meaning that clients, data vendors, investors and traders will now be able to access historical data more swiftly.

The JSE has partnered with CME Group, the world’s leading and most diverse derivatives marketplace, to house its first cloud solution offering. The move modernises the JSE’s market data offering and strengthens the exchanges position as a global market player.  The historical tick data will enable clients, traders and investors to assess trading opportunities, strengthen their market insights and improve risk mitigation intelligence based on both the market and various individual stocks’ past performance, support compliance reporting with more extensive data and conduct other valuable trading-related analyses.

“Traders, investors and our clients require tick data all the time in order to make informed decisions and we are pleased to offer them swifter access to information that can enable them to make these decisions.  As the JSE we constantly aim to provide our clients with the right solutions to meet their needs,” says Mark Randall, Director of Information Services at the JSE. 

Source:
https://www.jse.co.za/articles/Pages/JSE-now-offers-historical-tick-data-in-the-cloud.aspx

Botswana Stock Exchange hosts responsible investing and ESG workshop

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Panel-Discussion__Botswana-ESG-Workshop

(24 June 2019) The Botswana Stock Exchange (BSE) in collaboration with the UN SSE initiative held a workshop on Responsible Investing and ESG attended by issuers, potential issuers and investors. The workshop featured speakers from the BSE, the United Nations Sustainable Stock Exchanges (SSE) initiative, the Ministry of Finance and Economic Development (MFED), the UN-supported Principles for Responsible Investment (PRI), Kgori Capital, Leru Property Group, and Norsad Finance.

The workshop was aimed at building capacity among issuers and investors regarding the importance of ESG considerations in investment management processes. Mr Patrick Seitiso, from MFED, presented on the Botswana SDGs Roadmap covering the years 2017-2023 outlining the domestication of the SDGs, private sector involvement in the implementation of the Roadmap and the alignment of Roadmap to the National Development Plan 11.

In his presentation on Mainstreaming of Responsible Investment, Mr. Adrian Bertrand of PRI unpacked responsible investing with real life case studies of what has been irresponsible investing by listed companies in Africa and worldwide. He further explained the approaches to responsible investing and ESG incorporation and discussed how asset owners and financial services providers can benefit from being signatories to PRI whose platform provides insightful information and useful guidance material on the interrogation, assessment, and the reporting of responsible investing and ESG.

The BSE Head of Product Development, Mr. Kopano Bolokwe presented the BSE’s position on responsible investing and ESG, and discussed the initiatives undertaken by the BSE in mainstreaming ESG into the domestic capital market. He also presented on the BSE’s ‘Guidance For Listed Companies on Reporting ESG Information to Investors’, a framework developed by the BSE and aligned to the SSE’s Model Guidance on Reporting ESG Information to Investors.

Ms. Tiffany Grabski, SSE initiative Deputy Coordinator presented on boarder market trends, providing an overview of the SSE initiative’s research, their involvement with stock exchanges and securities market regulators, and discussed the market opportunities presented by the global transition towards sustainability.

The workshop featured a panel discussion on the practicalities of ESG disclosure – regulator, issuer and investor perspectives with speakers from Kgori Capital, Leru Property Group, PRI, and Norsad Finance. The panelists shared information about their practical experiences in incorporating ESG into their investment processes, the importance of ESG reporting and disclosure by issuers, the challenges in accessing ESG data, and ways to address inconsistencies in ESG reporting, among others.

source: Sustainable Stock Exchanges Initiative. https://www.sseinitiative.org/home-slider/botswana-stock-exchange-hosts-responsible-investing-and-esg-workshop/