Recent entrants shore up Malawi’s stock market
Market analysts have predicted an increase in share prices for recent market entrants, FDH Bank plc and Airtel Malawi plc, following the release of their financials which show substantial profitability for the year ended December 31.
FDH Bank plc posted a K14.9 billion profit-after-tax during the year under review, up from K5.2 billion recorded in 2019.
The bank has since declared an interim dividend of K3 billion, representing K0.43 per share.
In a separate statement, Airtel Malawi plc announced to have posted a K22 billion post-tax profit, up from K15.9 billion in 2019.
The company attributes the performance to an increase in its operating profit.
Airtel Board has since recommended a final dividend of K2.10 per share.
Reacting in an interview, Stockbrokers Malawi Limited Chief Executive Officer Noel Kadzakumanja said the performances will enhance investor confidence.
“There might be some gain on the share price directly attributed to the results. Nevertheless, there could be other factors to keep driving up the share prices on both counters,” Kadzakumanja said.
In a separate interview, Alliance Stockbrokers Limited Operations Manager Thokozani Saulosi said performance of the two listed firms instils hope in stakeholders.
“It may create a demand for the shares which, in turn, has an impact on the share prices taking into account that not all listed companies have performed well in the previous year owing to different factors,” Unyolo said.