Slow 2022 start for stock market
The 16-counter Malawi Stock Exchange (MSE) performance was slow in January 2022 evidenced by a marginal downward movement of the Malawi All Share Index (Masi)—the measure of local shares market performance— to 44501.63 points from 45367.68 points in December 2021.
According to MSE’s January 2022 Monthly Market Performance Report, the local bourse posted a negative return on index of -1.91 percent despite registering an increase in both total traded value and volume of shares.
Share price gains in Airtel, Sunbird, NITL and Standard Bank during the month under review were not enough to offset share price losses in Old Mutual, FDH Bank, TNM, Icon Properties, NBS Bank, FMB and Illovo.
According to the report, market capitalisation decreased in both Kwacha and United States Dollar terms from K2,462,680.71 million ($3,016.51 million) to K2, 412,983.94 million ($2,955.64 million).
Market capitalisation as a percentage of gross domestic product was at 24.47 percent in January 2022 and 24.97 percent in December 2021.
But share volume traded increased by 51.23 percent while share value traded increased by 57.73 percent.
The market transacted a total of 24,610,034 shares at a total consideration of K1.2 billion in 275 trades in the month of January from a total of 16,273,255 shares at a total consideration of K777.5 million in 312 trades in the month of December 2021.
Market analyst Thokozani Saulos said the stock market performance was expected as January was a slow month characterised by tight liquidity levels in the system.
“We should expect the share prices to start gaining during the first month of the second quarter of this year but it will depend on the trading statements produced by companies and how investors will react,” he said.
January is the start of the lean period as companies plan for the year and investors exercise caution in spending.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.
