Mixed tidings on Malawi Stock Exchange in January
There was mixed performance of listed companies on the Malawi Stock Exchange in January as the Malawi All Share Index (Masi) increased by 10.34 percent despite a drop in both traded volume and value.
This is according to a MSE Monthly Market Performance Report released Tuesday.
According to the report, the market transacted a total of 62,928,670 shares in January from 97,387,204 in the preceding month, representing a 35.38 drop.
The market registered a consideration of K2.31 billion ($2.25 million) in 439 trades in the month of January from K3.34 billion ($3.25 million) in 348 trades.
MSE Chief Operating Officer Kelline Kondowe attributed the drop in volume and value to lack of significant trades compared to December and the seasonality of the market.
“It is too early to say that the positive performance seen in Masi will continue because some factors affecting the economy such as foreign exchange scarcity and energy are still here but we expect the good performance to persist,” Kondowe said.
Market analyst Cosmas Chigwe also attributed the performance to the seasonality of the market, adding that, in January, economic activities are usually slow.
He projected an improvement in the market’s performance going forward.
“Again, when the interest rates are high, the market expects a positive performance and this is expected to be compounded by the opening up of the economy in the coming months,” he said.
During the month under review, FDH Bank plc was the biggest share price gainer at 66.95 percent followed by FMB Capital Holdings plc at 50.64 percent while share price losses were registered on Old Mutual plc counter at -17.79 percent followed by Icon Properties plc at -0.25 percent.
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.