The Chairman of the Board of Directors (PCA) of the Mozambique Stock Exchange (BVM), Salim Valá, believes that the capital market can bring added value in the Mozambican economy and in promoting entrepreneurship, as it is still underused as a source of alternative financing by companies.

Intervening during the 3rd edition of the ABSA "Affluent Quick Talks", a virtual event promoted by ABSA and that was under the theme "Capital Market Investment: Challenges and Opportunities",

Valá added that because BVM is small, with little liquidity and depth, there is plenty of room for growth, innovation and expansion over the next 20 years.

During his speech, BVM's CEO focused on the most relevant aspects of capital market investment, highlighting the major achievements of the last few years, the impact of the economic crisis exacerbated by the Covid-19 pandemic, and the challenges and opportunities.

In his speech, he stressed the existing investment options, why invest in the stock market, what are the risks of such investment, the behavior of the stock and bond markets, what to know before investing in the stock market, how to buy listed stocks, how an investor can monitor the execution of his order, penalties upon disinvestment, and the companies listed on the stock market and the main trends.

Salim Valá pointed out that the investment options at BVM are the products traded on the stock exchange, namely shares, bonds, and commercial paper, but that with the evolution of the market there may be a greater offer ("green bonds", "blue bonds", income bonds, certificates of deposit, among other instruments).

About investing in the stock market, the advantages of diversification, profitability, tax advantages, the personal prestige of being a shareholder in large companies and large projects were focused, but also highlighted the various types of investment risks, common to many forms of investment, but that these risks can be minimized with greater knowledge of the market and of the companies on the part of the investors, also mentioning that one of the risks considered (the risk of economic crisis) is what currently justifies the decline in the value of the stock market.

At the investor level, Salim Valá stressed the importance of individual savings for stock market investment, knowledge about the companies where one wants to invest, how investment should be gradual and diversified, and emphasized that stocks are essentially a long-term investment.

The PCA of BVM ended his presentation by stating that investing in the stock market has advantages and risks, and that threats and crises can be sovereign investment opportunities, and that it is essential to create specialized services for the production and dissemination of stock market information to the market and investors.

He exemplified that there are companies that are growing fast in a context of economic crisis, such as those linked to health, technology, food production, production and distribution logistics, and financial services.