By Chimwemwe Mangazi & Benadetta Chiwanda Mia
The total value of shares listed on the Malawi Stock Exchange (MSE) dropped further to K27.99 trillion in May, from K28.59 trillion a month earlier, as nine of the 16 counters recorded share price losses.
An MSE Monthly Market Report shows that the Malawi All Share Index (Masi) closed May at 513,462.78 points, a 2.08 percent drop from 524,387.05 points in April 2026, bringing the year-to-date loss to 14.15 percent.
According to the report, a broad-based decline in banking stocks pushed the market into negative territory as all the five listed banks registered month-on-month share price losses.
FMBCH shed off 8.5 percent in share price to close the month at K534.53 from K583.90.
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The FDH Bank price dropped by 8.5 percent from K583.90 to K534.53 while National Bank of Malawi’s share price dropped by 5.5 percent, closing at K10,394.57 from K10,999.57.
NBS Bank lost 4.4 percent of its share value while those of Standard Bank Malawi declined by 3.5 percent.
Losses among banking stocks outweighed gains registered in other counters.
Sunbird Tourism was the standout gainer, surging 37.90 percent to K3,100.06 after expanding its lakeside resort capacity while Illovo’s jumped by 18.70 percent and Blantyre Hotels’ rose 15.97 percent.
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Equity market analyst Kondwani said the banks’ performance had a noticeable impact on broader market performance, given the significant weighting of banking stocks in market capitalisation and trading activity.
“While concerns regarding the operating environment, including inflationary pressures and foreign exchange shortages, may have influenced sentiment, the most significant factor appears to be limited market liquidity,” Makwakwa said.
Economist Exley Silumbu said the simultaneous decline in both volumes and values pointed to investors actively withdrawing from the market, not simply waiting for better entry points.
“Since September 2025, the volume has nosedived. This is very serious market de-capitalisation, capital flight. Both volumes and values have declined in the same period. Is that market correction really?” Silumbu said.
In a separate interview, MSE Chief Executive Officer John Kamanga said the decline in volumes was a result of low demand at a time more investors were looking to sell than buy.
“It is a reflection of low demand and excess supply of shares, hence the decline in share prices,” Kamanga said.
Market capitalisation as a percentage of gross domestic product stood at 92.89 percent in May 2026, down from 94.86 percent in April.
