The Malawi Stock Exchange (MSE) has attributed the capital market’s weak performance in the first month of 2026 to seasonal trading patterns and uncertainty following the introduction of new tax measures.
The market recorded a negative month-on-month return of 1.53 percent in January.
The Malawi All Share Index (Masi) closed at 588,918.94 points, down from 598,062.80 in December 2025.
This contrasted sharply with January 2025 performance, when the bourse posted a positive return of 29.90 percent.
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According to the January 2026 MSE Market Performance Report, trading activity improved, with 34.86 million shares exchanged in 4,225 transactions, up from 25.27 million shares and 3,260 trades in December.
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However, the increased activity came at lower prices, pushing total traded value down by 45.6 percent to K8.37 billion, as 13 of the 16 listed companies recorded share price declines.
Press Corporation share price dropped by 10.32 percent, while FMB Capital Holdings shed 7.28 percent.
Only two stocks posted gains during the month. Sunbird Tourism surged by 73.92 percent to become the top performer, while Illovo Sugar advanced by 15.02 percent.
The Domestic Share Index edged up marginally by 0.30 percent, but foreign-weighted counters performed worse, with the Foreign Share Index falling 7.19 percent. Consequently, total equity market capitalisation slipped from K32.56 trillion in December to K32.11 trillion in January.
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MSE Chief Executive Officer John Kamanga said the performance was partly driven by seasonal pressures, as retail investors sold shares to meet school fees and other household expenses.
He also pointed to uncertainty surrounding the recently introduced 30 percent Capital Gains Tax.
“Some retail investors are responding to the introduction of capital gains and are willing to sell at whatever prices, provided they are able to cash out. This trend has resulted in higher share volumes— about 35 percent more than in December—but lower values traded,” Kamanga said.
He said MSE is engaging the Minister of Finance and the Malawi Revenue Authority (MRA) for further review of the new tax measures.
Despite the setback, he expressed optimism that the market would soon return to positive territory, encouraging companies to consider raising capital through the Exchange.
Malawi Stock Brokers Business Development Manager Kondwani Makwakwa said prevailing economic pressures and limited alternative funding sources had prompted some shareholders to liquidate positions.
“In a market environment characterised by softening prices, short-term investors have also been motivated to cut losses, further adding to selling pressure,” Makwakwa said. He said subdued demand, which is driven by cautious investor sentiment and tight liquidity conditions, had intensified competition among sellers, placing further downward pressure on prices.
