By Chimwemwe Mangazi:
The Malawi Stock Exchange (MSE) continued with its bullish performance in the third quarter of 2018 as reflected by a 57.47 percent increase in share value.
In its third Quarter Market Performance report released on Wednesday, MSE indicates that the market, however, recorded a 76.35 percent decrease in terms of share volumes traded.
In the period under review, the market transacted a total of 84,606,501 shares at a total consideration of K7,358,084,929.80 ($10,139,590.24) in 508 trades.
In the corresponding period 2017, the market transacted a total of 357,818,552 shares at a total consideration of K4,672,746,997.72 (US$6,439,082.44) in 383 trades.
The average daily turnover for the third quarter was K118,678,789.19 ($163,541.78) compared to K75,366,887.06 ($103,856.17) for the corresponding third quarter 2017.
“Daily average share trades exhibited similar trends where the market registered an average daily volume of 1,364,621 shares compared to 5,771,267 shares traded in the corresponding third quarter of 2017,” reads the report in part.
According to the report, the market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (Masi) from 30736.95 points registered on July 1, 2018 to 32373.19 points registered on September 30, 2018.
This is giving a return on index of 5.32 percent, (4.95 percent in $ terms) compared to 26.30 percent, (26.65 percent in $ terms) registered in Q3 of 2017.
The Domestic Share Index increased by 7.93 percent while the Foreign Share Index fell by 1.21 percent.
According to the report, market capitalisation increased both in Kwacha and dollar terms from K1,370,739.23 million ($1,888.97 million) on July 1, 2018 to K1,434,953.37 million ($1,970.40 million) on September 1, 2018.
In an interview, Frank Harawa, a minority shareholder in some listed companies said dematerialisation system continued to face challenges, hence, the decrease in share volume.