The stock market debut of the bank that distributes the most dividends generated euphoria among investors, which in turn boosted the share prices of the four listed companies. BODIVA limits share price fluctuations to a maximum of 25% per session. Experts explain that the challenge should not only be to attract investors but to ensure that investments are based on fundamentals rather than short-term expectations.
The Stock Exchange Market (MBA) experienced euphoric days with the entry of BFA, which drove gains for investors in the other four listed companies, pushing them to record highs on the Angola Debt and Securities Exchange (BODIVA).
At the root of this is the high expectation surrounding the shares of the bank that has distributed the most dividends over the past 10 years (BFA), market speculation, and the fact that the Angolan capital market still has a significant number of investors with a low level of financial literacy — a factor that alone contributes to major market swings, as many decisions are still driven by momentary euphoria. Additionally, the allocation rate was only 19.8%, leaving investors with 80.2% of the capital they had intended to invest still available.
BFA shares were admitted on September 30 at a final public offering price (OPV) of 49,500 Kz per share. Six days later (on October 6), they reached 124,000 Kz — the highest value ever recorded on BODIVA — representing a 151% increase. This Tuesday, shares closed at 121,000 Kz, a 2% drop.
BAI, the company that inaugurated the stock market by selling 10% of the state’s stake in the bank, had its shares admitted at 20,640 Kz. By September 29 (one day before BFA’s debut), shares were trading at 90,000 Kz, later rising 34% to 120,850 Kz on October 3 — their highest level since listing. By October 14, the share price had fallen 16% to 102,000 Kz.
Meanwhile, BCGA shares rose 99%, from 15,600 Kz on September 30, 2025, to 31,000 Kz on October 10, reaching their peak. This Tuesday, the shares of the second listed bank settled at 27,000 Kz, a 15% drop.
Insurance company ENSA, which became the third listed company, hit a peak of 44,500 Kz on October 9, up from 26,000 Kz on September 30 — a 71% increase. This Tuesday, a share was worth 39,000 Kz.
BODIVA itself saw its shares rise from 32,000 Kz (on September 30) to a peak of 61,000 Kz on October 10 — a 91% increase in just 10 days. By Tuesday, shares were down to 57,003 Kz.
According to Giovanni Peliganga, market manager at Standard Asset Management, what occurred over the past two weeks partly reflects a young market with few issuers and limited liquidity. “In such contexts, any sudden increase in demand can cause disproportionate price movements,” he explained.
Peliganga added that Angolan investors are still becoming familiar with how the capital market works. “In this process, it’s natural for episodes of euphoria and emotion-driven decisions to emerge rather than analytical ones. What we’re seeing now isn’t much different from what happened in other African exchanges during their early years. Investor maturity will come with time, more transparency, more information, and above all, with financial education,” he said, adding that the challenge for the market should not only be attracting investors but ensuring investments are made based on solid fundamentals rather than short-term expectations.
A financial analyst connected to the market (who requested anonymity) also pointed out that the Angolan capital market still has a large number of investors with limited knowledge, which in itself contributes to significant market swings, “as many investment decisions continue to be driven mainly by market euphoria.”
“Nevertheless, one cannot rule out the possibility that, in some cases, prices may be intentionally influenced, considering that the trading of a single share can completely affect a stock’s price on the exchange,” the analyst admitted.
Meanwhile, Mariano Ferreira, CEO of the securities distribution company Kyros – SDVM, noted that the sharp gains seen in the stock market are uncommon in more mature markets, especially when viewed through the lens of traditional capital market fundamentals. “In more developed markets, this kind of behavior is usually justified by more concrete and visible factors, such as prospects of significant and consistent financial growth, expansion announcements, the launch of new product lines, improved ratings, or major sectoral changes,” which was not the case here.
Source: Expansão
