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Malawi Stock Exchange trading slows in first quarter

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UPBEAT—Saulosi

The Malawi Stock Exchange (MSE) registered a decrease in both total volume of shares and total value traded in the first quarter of 2021, a quarterly report published by the market has shown.

The report indicates that the market registered a positive return-on-index of 0.53 percent during the period under review, which is higher than the –3.56 percent return-on-index recorded during the corresponding period of 2020.

During the period under review, there was no listing or trading on the debt market.

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However, the market registered a positive return on index as reflected by an upward movement of the Malawi All Share Index (Masi) from 32392.84 points registered on January 1 2021 to 32562.96 points registered on March 31 2021.

“The market transacted a total of 32,218,071 shares at a total consideration of K1, 190,280,480.03 in 587 trades. In the corresponding period 2020, the market transacted a total of 70,886,329 shares at a total consideration of K1, 822,662,767.45 in 761 trades. This reflects a –54.55 percent decrease in terms of share volume and a –34.70 percent decrease in share value.

“Daily average share trades exhibited similar trends where the market registered an average daily volume of 511,398 shares in the first quarter of 2021 compared to 1,143,328 shares traded in the corresponding quarter in 2020 reflecting a decrease of –55.27percent,” the report reads.

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It further says that market capitalisation increased from K1, 759,857.40 million in January 2021 to K1, 770,108.50 million in March 2021.

MSE Chief Executive Officer John Kamanga said the decrease in positivity rate of Covid spread has brought in an element of relief to business operations in general and this has also resulted in investor activism and confidence in the capital market.

“The current release of financial statements by listed companies where most of them have posted good results has also contributed to investor excitement into the capital market, hence a marginal return on investment. We believe that this positive trajectory will continue in the coming months,” Kamanga said.

In a separate interview Stockbrokers Malawi Limited Operations Manager Thokozani Saulosi said the local bourse’s performance in the first quarter has been above expectation.

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