By Kingsley Jassi:
Malawi Stock Exchange (MSE) has some shareholders left excited as a number of counters continued to gain share price surges in recent days.
Airtel shares continued to surge on its way to possible recovery of the eroded market value, trading at K79 as of Tuesday from about K69 on Friday, pushing the company’s market capitalisation to K869 billion from K759 billion on Friday.
Standard Bank and Nico shares are also gaining value following what some shareholders say is a result of good outturns in the half year performances.
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Minority Shareholders Association of Listed Companies Secretary General Frank Harawa shareholders were excited with the market trends.
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He said following a huge financial loss by Airtel that was caused by exchange rate losses, there is a turnaround now as the company posted a half year profit of K21.3 billion, exciting the market.
The company saw the share price fall bring down market valuation from over K1 trillion to less than K500 billion, eroding the massive gains by shareholders following a reported bad financial performance in 2023 of K18.3 trillion. This was attributed to exchange rate exposure in the tower management deal as a result of the 44 percent devaluation.
The recent market developments also have Nico shareholders make K30 billion in capital gains within a day on Tuesday, as share price increased from the opening K200, closing at K238.
Recently, Standard Bank had the month of November to remember as the counter gained K148 billion in valuation, becoming the second largest company on the bourse from National Bank, reaching K1.407 trillion from K1.259 trillion between 10th and 11th of the month.
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Meanwhile, Harawa has said the minority shareholders are waiting eagery for the rights offer by Blantyre Hotels Limited as it aims to raise K62.4 billion for completion of a four star hotel project in Lilongwe.
