Advertisement PAC COVID-19 Message
Advertisement
Business

Mixed fortunes for listed companies

Advertisement PAC COVID-19 Message

Trading statements issued by some Malawi Stock Exchange (MSE)-listed companies shown that most are poised to register subdued profitability for the six months period ending June 2020.

Out of six companies that have issued such statements, four have predicted a decline in profits by over 20 percent with one declaring a loss in the process.

In its statement issued recently, Sunbird Tourism Limited plc said it expects to record a loss for the half year ending June 30, 2020 compared to the profit reported during the corresponding period last year.

Advertisement

National Investment Trust plc has indicated that its profits will decline by 75 percent while Press Corporation Limited plc and Telecom Networks Malawiplc have projected a 20 percent decline in profits.

Howeve, Airtel Malawi plc has declared that its profits in the period under review will grow by 300 percent compared to same time last year whereas NBS Bank projects a 90 percent increase in profits for the period.

MSE attributes the mixed performance to the Covid-19 pandemic which has affected most sectors of the economy.

Advertisement

MSE Chief Executive Officer, John Kamanga, said they continue monitoring further possible impact of the pandemic on the market’s performance.

“Companies that are reporting profits are in the financial service sector and perhaps they had overrunning loans which they were able to recoup from, hence, the profitability.”

“However, companies in the service industry such as Sunbird and Blantyre Hotels had challenges especially in their occupancy rate hence, reporting loses,” Kamanga said.

He said currently the market is dry as investors are on ‘a wait and see’ mode which has seen the return on investment stagnating.

“A very few companies have registered gains but many are stagnant and some have registered a decline in prices,” he added.

Stockbrokers Malawi Limited Chief Executive Officer, Noel Kadzakumanja, said the market performance was expected.

“The market has however seen a fewer volumes transacted on these counters but this should not necessarily be linked to the issuance of negative profit warnings. Outlook of the market is positive and we expect the returns to continue improving,” Kadzakumanja said.

Advertisement faith leaders
Tags
Show More
Advertisement

Related Articles

Back to top button
Close
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker