Share price for Malawi Stock Exchange (MSE) – listed Standard Bank plc on Monday soared to K4,400 per share to propel the company’s market capitalisation to K1.032 trillion.
Market capitalisation is the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.
A daily market report published by the MSE shows that Standard Banks has become the second-highest capital gainer, trailing National Bank of Malawi, currently with a market capitalisation of K1.26 trillion.
According to the report, Standard Bank’s share price increased from an opening price of K3, 950.34 per share and closed at K4, 400 per share, representing an 11 percent gain.
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In an interview, the bank’s chief executive officer Phillip Madinga said the development reflects the confidence that investors have in the bank in delivering superior profit margins.
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“This growth is a testament to our commitment to delivering exceptional financial performance, innovative banking solutions and sustainable growth. At our recent AGM in Blantyre, shareholders expressed satisfaction with our net profit record in the three years.
“Thanks to their support, we remain focused on creating long-term value for our shareholders, customers and the broader economy. Our strategic priorities, including digital transformation, customer-centricity, cost and risk management, are yielding positive results,” Madinga said.
Stock Brokers Malawi Chief Executive Officer Noel Kadzakumanja said investors can measure the size of a company by looking at the total market value of its outstanding shares.
“In the case of Standard Bank, the bank’s worth in terms of market value of its outstanding shares is now more than K1 trillion and this should be good news to investors as it means that the value of their shareholding in Standard Bank has grown too,” Kadzakumanja said.
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Unicaf University Business Management Lecturer Saidi Jackson said the trend is likely going to continue in the short term as investors exercise options in hedging capital against market volatilities.
“It is only logical for investors to back high performing companies or stocks, and with a good track record. Financial stocks such as for Standard bank are seen as relatively safer in this market because of their impeccable risk management profile, and prudence,” Jackson said,
The bank’s net profit for the financial year ended December 31, 2023 was K52.5 billion of which K25.4 billion was approved by shareholders last week as total dividend.
