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Stock market buoyant in third quarter

KAMANGA—Some institutional investors also came in

The Malawi Stock Exchange (MSE) registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (Masi) during the third quarter of 2020.

This is according to a Market Performance Report issued on Tuesday.

According to the report, Masi moved up from 29784.70 points registered on July 1, 2020 to 31743.36 points registered on September 30, 2020, giving a return on index of 6.58 percent, (5.19 percent in dollar terms) compared to –1.37 percent (3.47 percent in dollar terms) registered in third quarter of 2019.

The market also registered an increase in both total value of shares and total volume of shares traded.

According to the report, the market transacted a total of 551,047,767 shares at a total consideration of K12, 385,612,653.56 ($16,543,859.04) in 923 trades.

In the corresponding period 2019, the market transacted a total of 209,366,267 shares at a total consideration of K6, 709,006,554.78 ($9,152,898.07) in 721 trades.

This reflects a 163.20 percent increase in terms of share volume traded and a 84.61 percent (80.75 percent in dollar terms)

Speaking in an interview, MSE Chief Executive Officer, John Kamanga attributed the performance to institutional investors who did negotiated deal to participate with the new listing on the market which is FDH Bank.

“Some had sold their shares and after selling, they had bought shares from FDH Bank and about 3 percent had also come into the secondary market and some of the institutional investors who were in doubt about the counter also came in,” Kamanga said.

On 28 September 2020, the Exchange also listed 16 Malawi Government Treasury Notes on the debt market bringing the total number of debt securities to 28.

The market saw price gains registered on Airtel (50.00 percent), FDHB (20.60 percent), NBM (12.50 percent), Icon (9.56 percent) and Standard (7.72 percent).

The companies’ performance offset share price losses in FMBCH (19.97 percent), TNM (15.80 percent), Illovo (14.81 percent), PCL (3.98 percent) Mpico (3.92 percent), Nico (0.87 percent), NBS (0.31 percent) and NITL percent (0.01 percent).

The stock market’s positive performance is amid effects of Covid-19 pandemic to most sectors of the economy.

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