The Malawi Stock Exchange (MSE) registered a 32.68 percent drop in share value in October, figures from the local bourse show.
A monthly market performance report for the month indicates that the market transacted a total of 185,453,439 shares at a total consideration of K2,495,407,311.96 in 243 trades compared to 154,699,117 shares at a total consideration of K3, 706,719,389.44 in 246 trades in September.
This represents a 19.88 percent increase in share volume traded and a 32.68 percent decrease in share value.
Secretary for Minority Shareholders Association, Frank Harawa, said the trend is worrisome and discouraging for both companies and the public.
“The market is not stable and we as shareholders are clueless on when it will pick up. This is one of the worst scenarios experienced on the market and it is because most of the counters’ prices have been dropping since towards end of last year and to those who had debts, they are now eating up their capital which is not good,” Harawa said.
However, the report indicates that the market registered a positive return on index as reflected in an upward movement of the Malawi All Share Index from 29,546.27 points registered in September to 30,344.49 points registered in October.
This gave a month-on-month return on index of 2.70 percent.
Price gains registered by National Bank of Malawi (17.66 percent), Icon Properties (5.00 percent) and NBS Bank (4.08 percent) were the drivers resulting into an upward movement of the Malawi All Share Index.
The Domestic and Foreign Share Indices closed at 23445.64 and 4272.58 points respectively.