MSE Sluggish in November
The Malawi Stock Exchange (MSE) registered a sluggish performance in November, recording a drop in both traded value and volume, a situation market commentators attribute to continued effects of the Covid-19 pandemic.
A Monthly Market Report published last week indicates that, during the month under review, the local bourse transacted a total of 22,670,196 shares at a total consideration of K3,183,659,610.28 in 223 trades. In October, the market transacted a total of 659,979,164 shares at a total consideration of K13, 075,408,794.09 in 237 trades.
This represents a 96.57 percent decrease in share volume and a 75.65 percent decrease in share value.
“Daily average share trades exhibited similar trends where the market registered an average daily volume of 1,079,533 shares compared to 31,427,579 shares traded in October 2020, reflecting a decrease of 96.57 percent.
“The average daily turnover for November 2020 was K151, 602,838.58 compared to K622, 638,514.00 in October 2020, reflecting a decrease of 75.65 percent,” reads part of the report.
The market also registered a negative return on index as reflected in the downward movement of the Malawi All Share Index from 31303.78 points registered in October 2020 to 31225.08 points registered in November 2020, giving a month-on-month return on index of -0.25 percent Stockbrokers Malawi Limited Chief Executive Officer Noel Kadzakumanja attributed the slow down to effects of the Covid-19 pandemic.
He said, during same month last year, volumes went up by 84.79 percent and traded share value grew by 181.01 percent.
Alliance Stockbrokers Limited Operations Manager Thokozani Saulosi said in a separate interview that, in the past two months, the market recorded an increase in trades as it was recovering from the pandemic.
“In November, the only large transaction recorded was a PCL transaction which contributed 84 percent to the total value recorded,” Saulosi said.
MSE Chief Operations Officer Kelline Kanyangala said, in November, there were six counters that registered price declines compared to three counters that registered price gains.
