Malawi Stock Exchange bullish in August
The Malawi Stock Exchange (MSE) posted a positive outturn in August, with the Malawi All Share Index (Masi) growing from 36496.03 points in July to 38945.62 points.
In its August Monthly Market Performance Report, MSE says traded shares volume went up to 65,834,055 from 21,990,398 in July and while the value also grew to K4.8 billion from K994.8 million in July.
The report further indicates that the price gains registered by Illovo, Mpico, Press Corporation Limited, Standard Bank and National Bank of Malawi were enough to offset share price losses registered by FDH Bank, Icon Properties, and NBS Bank.
Commenting on the performance, MSE Operations Manager Kelline Kanyangala said this was on account of the opening up of the economy from the economic knocks of the Covid pandemic.
“Within the month of July to September, companies issue half-year results and most investors trade on that information. Therefore, that information combined with interim dividends announcements, improves trade,” she said.
The MSE this year has clocked 25 years and is having 16 counters of local companies.
Alliance Stockbrokers Operations Manager Thokozani Saulosi said in a separate interview that the good performance was due to the seasonality of the market.
Saulosi said the performance meant good news for the economy because as it reflects positive performance of listed companies.
“If the market crashes, it will be a sign of disaster for the economy. Therefore, if the market is doing well, it means the economy is recovering from the pandemic and people have learnt to live with the pandemic,” he said.
While all sectors of the economy were heavily affected by the pandemic, most listed firms have shown some level of resilience as they were seen to have posted a jump in profit.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.