The Malawi Stock Exchange performed poorly in October, having registered a month-on-month and year-on-year drop in Malawi All Share Index (Masi), figures from financial advisory firm, Bridgepath Capital show.
In its recent market report, the firm says the stock market was bearish over the period as the Masi decreased by 3.76 percent to 113,969.91 points from 118,426.19 points in September 2023.
The Masi return was seen at 83.72 percent in October 2023 which is also a drop compared to 90.90 percent in the previous month but higher if compared to 21.33 percent in October last year.
The drop is explained by share price losses on a number of counters which offset gains in share prices on other counters.
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“FMBCH was the largest share price loser as its share price decreased by 27.72 percent to K300.00 per share from K415.03 per share.
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“There were also share price losses for FDH Bank, Nico, and NBS as well as marginal share price losses for Airtel, TNM, Icon, and Illovo,” the report reads.
It adds that in October 2023, Old Mutual Limited was the largest share price gainer as its share price increased by 14.29 percent to K1,200 per share from K1,050 per share in September 2023.
The report further says there were also share price gains for Standard Bank and NITL.
Additionally, there were marginal share price gains for PCL, Sunbird, and NBM.
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Speaking in an earlier interview, Malawi Stock Exchange Chief Operating Officer Kelline Kondowe said there are a lot of factors that cause the share price of a counter to drop.
She said, for example, where there are more sellers on the market than buyers, the price drops because the market, just like any other market, also reacts to the laws of demand and supply, adding that market dynamics are unpredictable but good performance for most counters is guaranteed in the long run.
The MSE has 16 counters from different sectors of the economy.
