Malawi Stock Exchange (MSE) registered a mixed performance in 2023 witnessed by a decline in the number of shares traded, albeit an increase in the value of the shares.
An Annual Market Performance report Published by MSE on Wednesday shows that the market transacted a total of 612,184,956 shares at a total consideration of K77.2 billion in the year.
This represents a 56 percent decline in shares traded when compared to the 1,402,901,021 shares traded in 2022.
However, the value of the shares has increased by 49 percent as the traded shares in 2022 recorded a value of K51.7 billion.
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“The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (Masi) from 62,036.05 points registered on 3 January 2023 to 110,951.21 points registered on 29 December 2023, giving a return on index of 78.85 percent,” the report reads.
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In an interview, MSE Chief Executive Officer John Kamanga said 2023 was one of the best years with regards to wealth creation and capital growth realised by investors on the stock market.
“The major challenge is the reluctance of some potential companies to get listed despite being availed with the benefits and procedures of getting listed,” Kamanga said.
In an earlier interview, economist Marvin Banda said foreigners are realising that Malawi offers lucrative opportunities witnessed by the foreign share increase higher than the domestic share in the indices, which helps to explain why the nominal figures are greater than the volumes.
He added that of the top performing entities, banks dominate the market, which is ironic because the top four are responsible for holding a lot of government securities both in Treasury bills and Treasury notes.
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“We call this “lazy-money”. It shows a lack of creativity and diversity from the banks, which translates to limited options on the stock market. Of the 16 listings at least five are typical banks; when you factor in investment holdings and insurance companies, this share is well over 60 percent.
