The equity market opened February on a subdued note, with major indices edging lower despite pockets of buying at selected counters.
Investors took a cautious stance at the start of the new trading month.
According to the Malawi Stock Exchange (MSE) daily bulletin for February 2, the Malawi All Share Index (Masi) slipped by 633.54 points to 588,285.41, while the Domestic Share Index shed 566.20 points to close at 406,397.86.
The Foreign Share Index eased marginally by 3.42 points to 146,969.53
Market activity remained relatively firm, with total turnover reaching K89.96 billion from 158 deals, while overall market capitalisation stood at K32.07 trillion at the close of the session
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Telecommunications firm TNM emerged as the day’s top gainer after its share price rose by 1.92 percentage points from K30.66 to MK31.25, pushed by strong demand that also made it the most traded counter by volume with 361,592 shares changing hands.
Blantyre Hotels posted a modest gain of 0.13 percent to K15.00, while Illovo Sugar inched up by a negligible margin to K2,680.01
However, selling pressure in heavyweight stocks weighed on the broader market.
Airtel Malawi plc saw its share price falling by 2.50 percent from K117.95 to K115.00. NBM plc share price slipped by 0.11 percent to K11,730.21, while NBS Bank plc price dropped by 0.06 percent to K891.92.
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Trading data showed that more than 547,000 shares exchanged hands across the market on Monday.
The bond market remained active alongside equities, with numerous government securities quoted across different maturities.
Malawi Stock Brokers Business Development Manager Kondwani Makwakwa said there has been increasing supply on the market, driven largely by liquidity needs among investors.
According to Makwakwa, with muted demand, this has created competition on the sell side, leading to pressure on share prices.
“However, looking ahead, this phase may actually present an opportunity to long-term investors,” Makwakwa said.
Equity investor, Benedicto Nkhoma said the slowdown has also been exacerbated by the introduction of Capital Gains Tax as investors are looking at other opportunities in the market. “This is however short term and such volatility is normal. Once the results are out and investors have adjusted to inflationary pressure some arising from fuel and electricity price increases,” Nkhoma said.
