Business

Positive outlook for stock market

KAMANGA—Future looks bright

Commentators and market players have given a positive outlook for the Malawi Stock Exchange (MSE) in 2020 and beyond.

They project an increase in activity on the local bourse.

This is amid a registered relative poor run on the market in 2019 evidenced by a 33 percentage points drop in return on investments from 34.19 percent at the close of 2018 to 1 percent in December 2019.

Players on the market also complained that political situation this year affected market trends.

But MSE Chief Executive Officer, John Kamanga, said performance at the market would improve significantly next year.

“The future looks bright, I can attest to it that the market should be ready for good listings in the coming year. We should be able to list two more [companies] in 2020 coming from the financial sector; we have received confirmed enquiries as well as the companies appointing advisors.

“We are ready and we are looking at the new year with optimism,” Kamanga said.

Minority Shareholders Association General Secretary, Frank Harawa, said the 2019 performance cannot only be attributed to the political situation.

“We do not know the reason the market performed badly because 2019 was the year interest rates were reduced, the pension monies came in and we thought the market was going to tick, for the listed companies most of them are doing okay so we are not sure.

“Yes we are excited about new companies coming on the market but we are still on a wait and see mode but hopefully we expect a good year,” Harawa said.

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