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MSE registers drop in volume, value

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The Malawi Stock Exchange (MSE) registered a slump in both traded volume and value in February due to seasonality factors.

The market liquidity is usually lean in February because investors also await results on the financial performance of listed companies.

Figures contained in a recent monthly economic review by the Reserve Bank of Malawi (RBM) show that a total of 14.7 million shares were traded during the month, earning K421.4 million.

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This is compared to 19.4 million shares traded during the preceding month, with total value of K610.2 million.

In January, the market saw one company, Airtel Malawi Plc, listing which pushed number of listed firms to 15.

This resulted into an increase in total domestic market capitalization to K1, 351.6 billion in the month of review from K1, 176.7 billion in the previous month.

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“Consequently, total market capitalisation closed high at K1, 519.7 billion in February 2020 from K1, 368.4 billion in the previous month.

“This was despite a decline in foreign market capitalization to K168.2 billion from K191.7 billion on account of a share price loss on FMBCH counter.”

The losses registered in value and volume of shares traded is likely to continue amid the Covid-19 pandemic.

In an earlier Interview, MSE Chief Executive Officer, John Kamanga said the effects worldwide have been negative.

Stockbrokers Malawi Limited Chief Executive Officer Noel Kadzakumanja also predicted doom for the market.

“If anything, 2020 will be worse because of the coronavirus. It only depends on how long will we be affected by the virus but in countries already hit, we have seen markets crumbling,” Kadzakumanja said.

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