By Benadetta Chiwanda Mia:
The Malawi Stock Exchange (MSE) maintained its bullish run in August 2024 witnessed by an increase in the Malawi All Share Index (Masi) to 141,275.06 points from 128,996.65 points in July.
This represents a 9.52 percent increase in return compared to 6.52 percent recorded in the previous month. The Masi year-to-date return was recorded at 27.33 percent.
A monthly market performance report published by the MSE, Monday, indicates that the market registered an increase in traded volumes and traded value of 18.85 percent and 74.71 percent, respectively.
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“Equity market capitalisation increased in both Malawi Kwacha and US Dollar terms from K6.97 trillion ($4.02 billion) to K7.63 trillion ($4.40 billion). Market capitalisation, as a percentage of gross domestic product (GDP), was at 40.70 percent in August 2024 from 37.18 percent in July,” the report reads.
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In an interview, MSE Chief Operating Officer Kelline Kondowe attributed the development to increased half-year profit results highlighted in trading statements of some listed companies.
However, she was quick to disclose that a comparison of the year-to-date results to a similar time last year indicates a slowdown in both returns and activity on the market.
“This is good news to the investors as they continue to register positive returns on their investments. We remain optimistic that the market will continue to deliver good returns to the investing public,” Kondowe said.
coming from the
trading statements
In a separate interview, Stockbrokers Malawi Limited Equity Research Analyst Kondwani Makwakwa said the good financial performance of some companies in the first half of 2024 has pushed share demand of the counters, especially the financial sector, resulting in increased share prices.
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“The outlook remains positive looking that now we have gone a few months to wrap up the year. However there might be some changes. We should expect the share prices of some counters to continue rising if companies will be able to sustain the current performance, ” Makwakwa said.
The report further shows that NBM was the major share price gainer as its share price increased by 27.77 percent to K3,450.01 per share from K2,700.08 per share in July 2024.
Other gainers were FDH Bank at 24.18 percent, Old Mutual Limited at 14.98 percent, TNM at 10.36 percent and Standard Bank gained by 10.23 percent.
Nevertheless, the market registered a significant price loss in Icon Properties by 5.49 percent to K14.99 per share from K15.86 per share in July while NBS Bank registered a 1.67 percent share price loss.
