Stock market buoyant in first quarter
The Malawi Stock Exchange (MSE) remained buoyant in the first quarter of 2023 registering a 28.22 percentage point increase in the return on index.
The market registered a return on index of 29.44 percent which is higher than the 1.22 percent recorded in the corresponding period of 2022.
A market performance report published by MSE indicates that the Malawi All Share Index (Masi) moved up to 80,298.12 points registered on March 31 2023, from 62,036.05 points registered on January 1.
It further shows that 11 out of the 16 counters registered price gains, enough to offset share price losses in the remaining counters.
Nico registered a 126.67 percent share price rise, FDH Bank registered a 124.41 percent increase, NBS recorded an 84.97 percent jump, NITL at 60.02 percent, FMB Capital Holdings at 50.62 percent, Illovo at 38.89 percent, Airtel at 32.43 percent, Sunbird at 30.35 percent, National Bank of Malawi at 14.54 percent, TNM recorded a 10.71 percent while Standard Bank recorded a 10.02 percent share price increase.
The market transacted a total of 118,816,338 shares at a total consideration of K6.8 billion in 1,545 trades.
In the corresponding period 2022, the market transacted a total of 112,057,459 shares at a total consideration of K4.4 billion in 848 trades. This reflects a 6.03 percent increase in terms of share volume and a 54.98 percent increase in share value,” the report reads.
In an interview, MSE Chief Operating Officer Keline Kondowe said the performance was due to outstanding individual financial performances by the listed companies.
“The performance is anchored on performance of the listed companies, the majority of which have posted an increase in profits or have issued trading statements stating that profits will increase.
“As a result, we have seen that the market has performed very well in terms of price gains. We see this as evidence that the stock market offers a competitive avenue for value preservation and creation for investors even in challenging macroeconomic environments,” Kondowe said.
Financial market analyst Bob Mtembezeka said the performance signifies that more people are becoming aware of the investment opportunities that the market offers.
“The performance has been buoyed by an impressive performance in most of the listed entities, especially those from the financial services industry.
“So that has attracted interest in the overall market. I personally have also received numerous inquiries on the stock market to levels I have not seen before, which is an indication that the market is gaining awareness and people are willing to invest in shares,” Mtembezeka said.
Market capitalisation, as a percentage of gross domestic product was at 36.08 percent in the quarter higher than the 25.24 percent recorded in the first quarter of 2022.