Stock market bullish in April
By Chimwemwe Mangazi
The Malawi Stock Exchange (MSE) continues to build on the positive performance registered in the past months, having registered a positive return on index in the month of April 2022.
A market performance report published by the local bourse on Thursday indicates that the return on index pushed upwards the Malawi All Share Index (Masi) from 45921.23 points registered in March to 46934.16 points in April 2022.
This represents a month-on-month return on index of 2.21 percent.
The report attributes the development to price gains registered by FMBCH at 38.73 percent, Nitel at 15.8 percent, National Bank of Malawi at 0.06 percent, Airtel Malawi at 0.05 percent and Illovo Sugar Malawi at 0.03 percent.
However, companies such as TNM, Icon properties, FDH Bank, Press Corporation Limited and NBS Bank registered share price losses.
“The market transacted a total of 56,715,631 shares at a total consideration of K7,254,524,688.88 in 312 trades in the month of April 2022. In the previous month of March 2022, the market transacted a total of 49,167,195 shares at a total consideration of K1,794,403,820.60 in 306 trades. This reflects a 15.35 percent increase in terms of share volume traded and a 304.29 percent increase in share value traded.
“Daily average share trades exhibited similar trends where the market registered an average daily volume of 2,985,033 shares compared to 2,341,295 shares traded in March 2022, reflecting an increase of 27.49 percent. The average daily turnover for April 2022 was K381,817,088.89 compared to K85,447,800.98 in March 2022, reflecting an increase of 346.84 percent,” the report reads.
MSE Chief Executive Officer John Kamanga said the increase in volume and value of shares traded is as a result of an increase in trading activities.
This is arising from the release of positive trading statements by listed firms, according to Kamanga.
“The outlook is promising. However, the market will be passing through challenging times taking into account the increase in policy rate as this will have an effect on increasing interest rates in money markets instruments, hence posing a threat to long-term returns in the capital market.
“This will, however, be mitigated by positive results posted by some listed companies,” Kamanga said.
Stockbrokers Malawi Limited Chief Executive Officer Noel Kadzakumanja said the performance is good considering that the Masi gained by 2.2 percent on month-on-month basis.
“At the same time, we have seen increased volumes and values of transactions traded while we have also witnessed the first trade on government debt securities and the outlook for the year is positive,” Kadzakumanja said.