The Malawi Stock Exchange (MSE) maintained a positive trajectory in the third quarter of 2024, showcasing resilience to economic challenges and attracting increased investor interest.
An MSE market report published on Wednesday shows that the market registered a return on index of 17.82 percent in the quarter from the 8.99 percent recorded during the corresponding period last year.
It shows that the year-to-date return stood at 28.6 percent.
“The market transacted a total of 192.61 million shares at a total consideration of K29.13 billion in 4,378 trades. This represents a 22.73 percent increase in share volume and a 22.47 percent increase in share value traded in compared to the third quarter of 2023.
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“The market registered an average daily volume of 2.96 million shares, up by 20.84 percent from that of last year in the [corresponding] period. The average daily turnover increased by 20.58 percent to K448.16 million,” the report reads.
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Furthermore, the Malawi All Share Index (Masi) exhibited strong growth, rising from 121,101.77 points on July 1, to 142,686.97 points on September 30 2024.
This represents a 17.82 percent increase, higher than the 8.99 percent growth seen in the third quarter of last year.
In an interview, Stockbrokers Malawi Limited Equity Research Analyst Kondwani Makwakwa said in the quarter under review, numerous companies reported impressive half-year results and declared substantial dividends.
He, however, said despite the market’s resilience, potential macroeconomic risks such as currency fluctuations may affect investor behaviour.
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“Consequently, investors are advised to maintain diversified portfolios to mitigate risk and capitalise on opportunities across various sectors,” Makwakwa said.
MSE Chief Operating Officer Kelline Kondowe said the positive outturn in the third under review was anchored by positive performance of listed companies.
“Looking ahead, we are optimistic that the good performance will be sustained. Nonetheless we are aware of downside risks within the macroeconomic environment which could affect performance. But, so far, the outlook remains positive,” Kondowe said.
