Capital market experts say they expect increased activity and a substantial rise in the return on investment on the Malawi Stock Exchange (MSE) this year.
This comes after the local bourse’s performance was characterised by a substantial decline in share volumes traded despite an increase in the value of shares and market capitalisation in 2023.
Stockbrokers Malawi Limited Equity and Money Market Dealer Kondwani Makwakwa said the outlook is, however, promising.
“Investors will still consider the stock market as the best investment option considering that the year 2023 helped a lot of retail investors weather the storm of the current economic environment, hence this may trigger demand for shares.
“Another factor that may trigger demand for shares is the good trading statements that were posted by the companies in December 2023, showing that most of them will post an increase in profitability,” Makwakwa said.
Market analyst Bond Mtembezeka said the outlook remains promising.
“The increase in foreign share index is very important because it speaks to the effects the economy is having on domestic consumers but propping up foreign investment,” Mtembezeka said.
MSE Chief Executive Officer John Kamanga said the market is expected to post good tidings.
“We have seen the stability of the Kwacha following the resumption of budgetary support from the donor community. We believe this will build investor confidence into our market.
“We look forward to the launch of a mobile trading platform which we believe will attract more retail investors and, therefore, the exchange will be one of the key players on financial inclusion drive as well as wealth distribution among Malawians,” Kamanga said.
But a weekly summary report for the first week of trading, ending January 12 2024, shows that 1.8 million shares were traded at a consideration of K334.3 million.
This signifies an astronomical fall in the number of shares traded in the week as 15.1 million shares were traded during the same period in 2023, valued at K312.6 million.
