The Malawi Stock Exchange (MSE) was buoyant in August, witnessed by an increase in the Malawi All Share Index (Masi) and a rise in earnings.
A monthly market report for August published by the MSE on Monday shows that the market registered a positive return on index as reflected in the upward movement of the Masi to 54454.45 points from 52889.87 points in July 2022, giving a month-on-month return of 2.96 percent.
It further indicates that the market transacted a total of 132,789,838 shares at a total consideration of K5.5 billion in 396 trades in the month under review from 270,135,789 shares at a total consideration of K4.7 billion in 360 trades.
The development, however, represents a 50.84 percent decrease in share volume traded.
“Daily average share trades exhibited similar trends where the market registered an average daily volume of 5,773,471 shares compared to 13,506,789 shares traded in July 2022, reflecting a decrease of 57.26 percent. The average daily turnover for August 2022 was K237 million compared to K234 million in July 2022, reflecting an increase of 0.87 percent,” the report reads.
Market analyst Thokozani Saulosi said the August performance could be attributed to an increase in demand in selected counters that have shown positive results in the first half of the year.
He said the economic environment, however, has a bearing also on performance of listed companies.
“From the half year results and trading statements, the market seems to retain its resilience hence positive expectations ahead,” Saulosi said.
MSE Chief Operations Officer Keline Kanyangala said the market continues to perform well in terms of return on index despite a slowdown in trading activity.
She said the return registered in August brings the year to date return to 20.03 percent, which is quite similar to the return trajectory of 2021 when the Exchange was the third best performing stock exchange in Africa.
“Despite being relatively small in numbers, we see that we do have companies in different sectors of the economy which are in return affected differently by forces within the economy.
“The rising inflation [however] also does erode investor’s purchasing power which diminishes their ability to participate in the market,” Kanyangala said.
She said the outlook remains positive, as the stock market remains a viable option for investing funds for optimal return.