On July 25, the Institutional Stock Exchange (Biva) completed three years of operations, for its general director, Maria Ariza, the company has a positive balance; Among the greatest achievements, she highlighted that commissions decreased and says she continues to focus on the work of achieving a deeper market, more in line with the size of the economy and much more inclusive.
In an interview with MILLENNIUM, said that from the start of operations of Biva, the commissions decreased 46 percent, on average, in listing and maintenance; Furthermore, the equity issue drought was broken, new companies entered the market, and more work began to increase financial education in the country.
How have these three years of Biva operations been?
The balance of these three years is very very positive, we are happy with the achievements we have obtained, the competition has been beneficial for the financial and stock market sector, since it always generates a virtuous circle of benefits for the client. We have been showing our value strength in products and services for three years. We have had important advantages both in accompaniment, as in the structure, intermediation, as well as in the reduction of rates for the benefit of the participants.
Biva in addition to having achieved this immersion in the market with an innovative technological offer, we have sought to attract new players, companies of different sizes, from different industries and sectors, which were not previously in the markets. We have financed more than 200 billion pesos in different types of assets and, therefore, we have become this important player that contributes to the development, evolution and growth of the financial and stock market.
Of the objectives set, which ones have been met?
At Biva we set challenging goals for ourselves, we seek to attract new companies to the market, but also new players. We have 14 new companies, which have been projects of all kinds of visions. A joint-stock company (Cox Energy), which was the one with which the drought of emissions in capitals was broken in the last three years, in the midst of the pandemic, in a new industry throughout Latin America, which is photovoltaic solar energy. .
That fills us with pride and motivation, because we show that the market is for all those companies that want, finance themselves and obtain growth. This company was not in a stage of maturity in the markets, but it sought support and made a relatively small issuance for what we are used to. It really is breaking paradigms, breaking stereotypes and creating formulas that did not exist before.
And on the investor side?
We have also made a significant effort. The volume in the daily operating market when Biva arrived was around 15 billion pesos and today we passed 20 billion pesos. This means a growth of 26 percent in volume traded. We really believe that it is a very important effort, which reflects greater dynamism, obviously it also reflects the volatility of the times we have lived, but also of a market that we believe is penetrating and consolidating little by little.
Work has also been done in the educational part, through academic programs. We have carried out, in conjunction with 120 universities, public and private, and in collaboration with brokerage firms, through the technology they have developed, the gap has been closed and the number of accounts has grown , from 200 thousand to one million 300 thousand.
What is pending?
We have to bring more companies to the market, we have to ensure that there are a greater number of participants financed through the markets and that Mexican investors allow us to participate in this enormous opportunity. Continue with the stock market education that our country needs. We need to involve at least ten times the number of people who participate because this is a huge opportunity that is wasted and it really generates important returns for our investors.
The most important thing is to detonate the changes that our market needs to become more competitive, more dynamic and more stock market. We have many companies with which we have been working and supporting in this process of reaching the markets, but the most important thing is to achieve the diversification of our investors, who bet on the growth of companies, who have different risk profiles, who see the potentials of the investments we propose.
How do you get more companies to market when there are some that are slipping?
The delisting, in some cases, simply attends to particular strategies of the companies that have other projects. When valuations are cheap, when entrepreneurs believe that they are below what they believe is a fair valuation of their companies, some seek to delist their values to buy them back and, in the future, to reposition them. There are companies that bring other strategies, such as listing in international markets or financing themselves in a different way.
But it is true that one of the important challenges is the issue of the valuation itself. That’s what I mean when I say that we need to develop demand, greater investors’ appetite, because what is happening is that when decision-making is concentrated and when there is not enough diversity of investors, who to turn to when there is an issue, that makes that by supply and demand the valuation goes down.
How to make anyone know that the stock market is an investment option?
At Instituto Biva we do it not only for university students, for people who are studying a degree, we also do it for any ordinary person. All the time we are generating webinars, seminars, talks, conferences, on our social networks, we have videos on our website, collaborations from all market participants, we have documents, podcasts. Everything is free so that it reaches people, so that they begin to understand the benefits and advantages of understanding the stock market as an investment option.
I want to invite people to break these myths that we have in mind, we believe that the stock market is for people who have a lot of money, who are sophisticated in the knowledge of financial matters, and no, it is an option for a person of walking. The brokerage houses have managed to capture and develop a much more efficient formula, where a person from 100 pesos can open an account and with the accompaniment of an expert, advise us on our investments.
Let’s look for assets, such as those in the stock market, that generate returns above inflation, where time and consistency of investment has a lot to do with the results that are obtained in the long term. The market over the years has given yields over the years, in a systematic way, above any other type of assets, it is the history of the great capitals that have been generated in the world.
What are the prospects for the stock market in a context of high inflation and an adjustment in interest rates?
We are seeing a recovery, the indices are showing a rise and this leads us to perceive that there is an important space of opportunity for companies that want to return to the market because the valuations are more attractive. There is more opportunity. We are clearly in a situation in which we are seeing high inflation and that will have the Bank of Mexico pending to make the monetary policy decisions to take to control it.