‘Covid-19 wave could hit Malawi stock exchange’
With most stock markets across the world already hit by the coronavirus spread, a local market commentator has warned that the Malawi Stock Exchange (MSE) could not be spared in the medium to long terms.
The Covid-19 is sending shivers and there is a possibility that the local bourse could perform below expectation this year.
In an interview, Stockbrockers Malawi Limited Chief Executive Officer, Noel Kadzakumanja, said the Covid-19 coupled with continued political impasse pose a great threat to market performance.
He said it would be a tall order for the local bourse to register the projected return on outturn.
“I do not think the performance of the market this year will be different from last year. If anything, 2020 will be worse because of the coronavirus. It only depends on how long will we be affected by the virus but in countries already hit, we have seen markets crumbling,” Kadzakumanja said.
MSE Chief Executive Officer, John Kamanga, conceded that the pandemic is likely to affect performance of the market, but indicated that it was too early to determine possible impact on returns.
“Globally, markets have been affected negatively. Once investors are dissatisfied, they may take the same approach on the local market.
“This is just about three months of the year, we may have some negatives during the first half but once the market starts responding positively, things may start picking up,” Kamanga said.
