Mixed fortunes for listed firms
Malawi Stock Exchange (MSE)-listed firms are poised to continue with a positive trajectory evidenced by increases in profit for the year ended December 31 2022 according to published trading statements.
Most of the counters have also registered share price gains in the first quarter of 2023 which gives confidence to shareholders.
Profits for listed firms from across all sectors which have already published their financial statements range from K3.1 billion to K45 billion.
The sectors include banking, hospitality, manufacturing, telecommunications, and property management among others.
As a result, investors have been racing for shares on the market resulting in share prices increasing at an alarming rate.
For example during the first quarter, Nico posted a share price gain of 126.67 percent, FDHB at 124.41 percent, NBS at 84.97 percent, NITL at 60.02 percent, FMBCH at 50.62 percent, and Illovo at 38.89 percent among other price gains.
Minority Shareholders Association of Listed Companies General Secretary Frank Harawa attributed the performance to profitability posted by the firms last year.
He said amid the volatility of the economy, most companies remained resilient.
“What we are seeing this year last happened around 2018 and 2019. This means this is a good year for the market, and eventually a good year for investors,” Harawa said.
According to the Malawi Stock Exchange first quarter report for this year, the market transacted a total of 118,816,338 shares at a total consideration of K6,853,106,604.91 in 1,545 trades against 112,057,459 shares at a total consideration of K4,422,039,628.86 in 848 trades in 2022.
The development reflected a 6.03 percent increase in terms of share volume and a 54.98 percent increase in share value.
Malawi Stock Exchange Chief Operating Officer Kelline Kondowe said this year promises to be good as even in January, unlike in the past, the market was active.
“This has been a good start of the year and this should be because of trading statements issued because most of the companies which have gained share prices have trading statements that indicate good profits,” Kondowe said.
The Malawi Stock Exchange has got 16 counters which range across all sectors.
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.