By Benadetta Chiwanda Mia:
The Malawi Stock Exchange (MSE) registered a buoyant start in January 2025, with a notable month-on-month return on index of 29.90 percent.
This return is way higher than the 4.25 percent recorded in January 2024.
This positive performance, reported in the MSE Monthly Market Report for January 2025, was driven by key share price gains.
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The report highlights that the Malawi All Share Index (Masi) rose sharply from 172,039.93 points in December 2024 to 223,474.92 points in January 2025.
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This impressive performance is largely attributed to substantial share price increases, including NBS Bank with a gain of 100.68 percent, FDH Bank at 85.20 percent, and National Bank of Malawi at 73.27 percent.
Other contributors included FMB Capital Holdings with a 15.21 percent increase, Sunbird at 15.01 percent, Standard Bank at 6.42 percent, and smaller gains from Mpico Holdings Limited, NITL, Press Corporation, and Illovo Sugar Malawi.
“The price gains outweighed losses from TNM, which fell by 20.05 percent, Airtel by 6.58 percent, and Icon Properties by 0.06 percent,” the report reads.
Both the Domestic and Foreign Share indices posted gains, with the former increasing by 32.35 percent and the latter by 15.08 percent.
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Equity market capitalization climbed from K9.38 trillion ($5.41 billion) to K12.14 trillion ($7.00 billion).
However, the market saw a decrease in traded share volumes, transacting 33.23 million shares worth K9.78 billion across 2,060 trades, compared to 78.78 million shares at K8.58 billion ($4.95 million) in December 2024.
This represents a 57.82 percent decline in volume but a 13.99 percent increase in value. Daily average volume dropped by 59.83 percent, while daily turnover increased by 8.56 percent.
Market analyst Kondwani Mwakwakwa attributed January’s positive trend to heightened demand in the banking sector, fueled by expectations of strong performance.
“Notably, the number of stock investors is growing daily, and it would be exciting to see one or two new listings. However, the outlook remains positive as we await half-year results, which could lead to favorable dividend payouts,” Makwakwa said.
Minority Shareholders Association of Listed Companies General Secretary Frank Harawa said shareholders were excited with the market’s performance.
“The start of 2024 saw companies rebounding from various shocks, such as Cyclone Freddy and 44 percent devaluation. Shareholders are excited by strong year-end trading statements and market awareness campaigns, which, along with anticipated dividends, have driven a surge in activity at the Malawi Stock Exchange,” Harawa noted.
