The Malawi Stock Exchange (MSE) maintained its positive trajectory in October 2024, registering a 3.17 percent jump in return on index.
The performance is primarily driven by significant gains in telecommunications stocks.
This is contained in the October 2024 Monthly Market report issued last week.
The market’s year-to-date return stands at 32.69 percent, signalling strong investor confidence despite the country’s economic challenges.
Worth noting is that mobile network operators TNM and Airtel emerged as the top performers, with their shares surging by 24.39 percent and 22.33 percent respectively.
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The hospitality sector also showed resilience, with Sunbird Hotels and Resorts posting a 6.66 percent gain.
The report further shows that trading activity intensified during the month, with the market recording transactions worth K19.38 billion, up from K18.32 billion in September.
The volume of shares traded also increased to 121.12 million from 115.32 million in the previous month.
“The Malawi All Share Index (Masi) closed at 147,216.86 points, up from 142,686.97 points in September, while market capitalization expanded to K7.95 trillion (US$4.58 billion) from K7.71 trillion ($4.44 billion).
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“The Domestic Share Index rose by 3.62 percent to 115,350.80 points, while the Foreign Share Index marginally declined by 0.02 percent to 19,978.82 points,” the report shows.
Stockbrokers Malawi Limited Equity and Stock Market Analyst Kondwani Makwakwa said the gain in the Masi is largely driven by a demand-supply imbalance.
“The telecommunications sector, in particular, has shown resilience and a hopeful recovery following last year’s currency devaluation, as seen in stronger mid-year results. Investor interest in this sector has been significant, further supporting the rise in share prices.
“The outlook for the MSE remains positive approaching year-end, though growth will hinge on macroeconomic factors like inflation, currency stability, and potential external shocks. A stable macroeconomic environment will be crucial to maintaining momentum and supporting investor confidence,” Makwakwa said.
MSC Chief Operating Officer Kelline Kondowe said they remain optimistic that the good performance will be sustained.
“We are aware of downside risks within the macroeconomic environment which could affect performance. But so far, the outlook remains positive,” Kondowe said.
