Activity slumped on the Malawi Stock Exchange (MSE) in July as 37.47 million shares were traded compared to 93.41 million shares traded in the preceding month, figures from MSE show.
This represents a 59.8 percent decline in shares traded. Similarly, the number of transactions declined to 947 against 1,409 transactions in June. Traded value took a similar trajectory, declining to K5.6 billion from K12.12 billion.
However, the market continued to register a strong performance in the month witnessed by a year-to-date return recorded at 81.34 percent.
In July alone, the market recorded a return of 3.53 percent where the best performing counter registered a share price increase of 22.26 percent while the least performer registered a share price loss of 0.11 percent.
MSE Chief Operating Officer Keline Kondowe said 10 companies registered a price increase during the month under review, while three companies registered a decline in share price.
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“Looking ahead, we anticipate that the market will preserve its gains as there is still considerable demand on the market on most of the counters.
“We are seeing a lot of investors seeking to buy shares on the market whilst, on the other hand, only a few investors are willing to sell their shares and normally willing to do so at a higher price,” Kondowe said.
Market analyst Bond Mtembedzeka said the trend was normal.
“Already, trading statements from some of the listed companies indicate a great first half and that should support the performance of the market in the second half,” Mtembedzeka said.
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The market has in recent months witnessed increases in traded volumes and value due to what commentators described as satisfactory performance from most of the listed companies.
