Ver Angola

Economy

Record trading at Bodiva is a sign of appetite for investment opportunities

The chairman of the board of directors of the Angola Debt and Securities Exchange (Bodiva), António Furtado, said this Thursday that record trading in 2020 reveals the market's appetite for more investment opportunities.

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The record of 1 trillion kwanzas in trading volume in one year of the public debt market, he noted, "is a clear sign of the market's appetite for more investment opportunities, which increases the pressure for the operationalization of the stock market in action.

António Furtado stated that the second edition of the Bodiva Forum, which was held this Thursday in Luanda, provides the market with a moment to share information and debate on the achievements attained and the challenges to be overcome.

On the occasion, the Secretary of State for the Treasury, Otoniel dos Santos, noted the "remarkable" growth of trading on Bodiva markets, which saw a 35.8 percent increase over the same period.

The institution went from over 100 billion kwanzas in 2015 to over 1 trillion kwanzas in 2020, he said.

For the governor, the activities of the Angolan stock exchange in 2020 translated into "total growth," especially "for a company that is making a path towards affirmation."

"It is also notable the fact that Bodiva itself has managed throughout this period to have as investors with custodied accounts above 15,000," he said, also highlighting the performance of the more than 25 Bodiva members, mostly banks.

According to Otoniel dos Santos, Bodiva "does not only trade public debt, but also corporate debt instruments", highlighting the participation units of collective investment organizations admitted to the regulated market managed by Bodiva.

To the positive performance of the regulatory markets by the Angolan stock exchange, in 2020, the secretary of state added, should be added the "viability of an effective stock market".

"This responsibility (of delivering the stock market) is incumbent upon all of us as capital market makers in Angola, because this path has the objective of allowing the financial flow to reach the real economy in a transparent and efficient manner, and with the confidence that is necessary," he defended.

The Privatization Program (ProPriv), which comprises the privatization of more than 190 companies and/or state assets until 2022, was pointed out by the governor as a "strategic mechanism" of the State aiming at a "strong economic fabric that aggregates agents, families and the State".

At least 15 state assets, including Sonangalp, Mota-Engil, TV Cabo and Banco de Comércio Indústria (BCI) should be privatized via the Bodiva market, and the privatization of BCI via a stock exchange auction is scheduled for this year.

For this reason, noted the former president of the executive committee of Bodiva, it is necessary to continue "preparing this environment for the negotiation of the instruments".

The responsible also challenged all actors in society to create a capital market "that serves the country", emphasizing that, in the executive's strategy, "the capital market has an accent syllable".

Because, he argued, "it can help economic agents that need financing to obtain the necessary capital to develop their activity without adding weight to what is public spending.

In addition to the presentation of the Bodiva 2020 Markets Annual Report, a debate on the "Market in Action" was also held, focusing on the preparation of national companies for the launch of the market.

Bodiva members were also presented with 2020 performance awards at the meeting and a new trading, custody and settlement platform was presented.

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