The share market was marginally bullish in the month of October 2016, registering a positive return on investment of 0.28 percent largely buoyed by share price gains in five counters.
Gains in BHL, FMB, Illovo, Mpico and Sunbird Tourism were enough to offset capital losses in NBM, NBS, Nico, NITL, Standard Bank and TNM.
The market, however, registered a decrease in both total traded volume and traded value. A Monthly Market Report for October, 2016 shows the market made a turnover of K331.4 million after 2,601,165 shares changed hands in 64 deals as compared to K520.6 million realised last month from 29, 146,377 shares in 104 trades.
Daily average share trends exhibited similar trends where the market registered an average daily volume of 123,865 shares compared to 1,387,923 shared traded in September.
The average daily turnover for October was K15.7 million compared to K24.7 million in September.
However, market capitalization increased in both kwacha and dollar terms from K586.6 million to K588.2 million in October.
In an earlier interview, Chief Executive Officer of Alliance Africa Malawi, Armstrong Kamphoni, observed that there is need to introduce more trading items on the Malawi Stock Exchange to create more activity and push up traded volumes.
He said only 10 percent shares are available for trading with the bulk of the shares held for long term investments by holding companies and pension funds leading to increased inactivity on the Malawi Stock Exchange over the past few years.
“Sometimes major movements in shares are one off and tend to affect the market. The market is moving on but affected by liquidity—to buy and sell shares instantly,” he said.