FMB Capital Holdings (FMBCH) has become the second company listed on the Malawi Stock Exchange (MSE) to hit K1 trillion in market capitalisation after its share price moved to K415 per share on Tuesday.
Airtel Malawi was the first out of the 16-counters on the local bourse to have a market capitalisation of K1 trillion.
Market capitalisation is the measure of value on the market and is measured by multiplying the number of shares in issue and the share price and it changes based on the performance of the share price of the number of shares in issue.
FMBCH has 2,458,250,000 shares in issue and the rise in its market valuation is attributed to increased share price.
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Market analyst Bond Mtembezeka said the growth means there is confidence in the market and many counters are poised to continue growing.
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Mtembezeka added that the increase in market capitalisation means that the investors will have higher returns.
“This increase is as a result of a gain in share price and a gain share price means that investors who placed their money in that counter will have more returns from their investment,” Mtembezeka said.
In its half year performance report for the period ended June 2023, FMBCH said its focus remains growth of the business, building into a significant regional bank with a diversified portfolio of corporate, business and consumer banking solutions, complemented by relevant treasury activities.
“Enterprise risk governance is a mainstay of the oversight process, such that capital, liquidity and other resource allocations are optimised,” the financial statement reads.
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MSE Chief Operating Officer Kelline Kondowe said while market dynamics remain unpredictable, many counters are poised to see an increase in capitalisation.
FBMCH is a conglomerate in the financial services sector with subsidiaries across the Sadc region.
