Malawi Stock Exchange (MSE)-listed FMB Capital Holdings, parent company for First Capital Bank in Malawi and other countries within the region, has seen its market capitalisation growing to K983 billion to become second on the local bourse.
It trails behind telecommunication industry operator Airtel Malawi, which recently became the first out of the 16 counters on stock market to have a market capitalisation of K1 trillion .
FMBCH has outpaced National Bank of Malawi, which now has a market capitalisation of K981 billion.
In an interview Monday, MSE Chief Operating Officer Kelline Kondowe said increases in market capitalisation on the counters reflect market and investors’ confidence.
She said among the benefits that come with listing on the market is price discovery, which is difficult for private companies and is beneficial, especially for shareholders who would want to realise the value of their investments.
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On outlook, Kondowe said market dynamics remain unpredictable but good performance for most counters is guaranteed.
“The market value of a company is dependent on market dynamics which are not predictable. We will continue to ensure that listed companies are able to leverage on their listing status to grow their businesses and create value for investors and ultimately the country,” she added.
Market analysts have for long touted investment in shares as one of the safe ways of investing as value grows substantially.
In an interview, market analyst Bond Mtembezeka said investors in the counter are expected to have good returns.
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“Those who have shares in the company will rejoice because this means good returns but those who were hesitant to invest in it will have to pay the delay price because they will buy the shares at a higher rate,” Mtembezeka said.
Market capitalisation is the sum of shares in issue for the company plus its share price on the market.
The Malawi Stock Exchange has 16 counters with the banking sector dominating. Other listed companies are from communications, hospitality, and manufacturing sectors.
