The Malawi Stock Exchange (MSE) is struggling to find its feet in 2024 evidenced by mixed outturn spilling into the second quarter.
A Monthly Market Performance Report for April published by MSE shows that the market recorded a significant increase in trading activity with trading volumes recorded at 80.47million from 20.3 million in March.
This reflects a 296.29 percent increase.
On the other hand, the market registered a negative return on index of –0.008 percent despite nine companies registering price gains. Four companies registered price declines.
In an interview, MSE Chief Operations Officer Kelline Kondowe said the economic outlook remains mixed and that that could negatively affect performance of the market.
“However, when we consider the long-term prospects, we remain optimistic that the stock market will continue to deliver solid returns for investors,” Kondowe said.
Stockbrokers Malawi Limited Equity Research Analyst Kondwani Makwakwa said the performance can be attributed to the recent release of financial statements by listed companies, which have presented a mixed picture.
He said while some companies showed notable profit growth, others underperformed.
“Additionally, institutional investors are involved in adjusting their investment portfolios to align with their preferred asset allocations or risk profiles.
“This strategic reallocation of investments by institutional investors adds to the increased trading activity in the market,” Makwakwa said.
Another stock market expert, Bond Mtembezeka, said the return decline is marginal and the number of gainers has increased while the number of decliners has decreased month-on-month, which is a positive development.
“The outlook is still great, the tobacco market has started on a good note and that can sometimes send a positive signal to other markets,” Mtembezeka said.
