With only a month to go before closing the curtain on 2017, the Malawi Stock Exchange (MSE) has rated the year as one of the best in recent years as the stock market registered positive strides in both traded value and volume.
By end of October, the local bourse’s performance was 50.5 percent.
MSE Chief Operations Officer, Esnart Chilije, said the outcome was the best and higher than returns registered in all other investment options.
“This year has been a good one for the stock market. Those who have invested in the stock market have reaped some good gains.
“When we look at the volume of shares that have been traded as well as the value of the trades that have gone through the exchange, comparing to a similar period previous years, you find that we are significantly above,” Chilije said.
She said there has been an improvement in both liquidity and price movements.
Chilije attributed the positive outturn to improvements in key macroeconomic fundamentals, including inflation and interest rates which have been on a downward spiral for the past eleven months.
Inflation now stands at 8.3 percent, while lending rates are on average at 26 percent.
The situation has improved level of disposable income among the potential investors.
Performance of most listed companies has also significantly improved as evidenced by positive outturns in their half-year results.
Going forward, Chilije said the market expects listed firms to consolidate their good performance riding on the back of the stabilisation of economic indicators.
“The outlook, therefore, appears positive,” Chilije said