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Stock market to extend bullish run

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The stock market is expected to maintain its bullish momentum to the end of the year, according to an expert, Armstrong Kamphoni, who is Chief Executive Officer of Alliance Africa Malawi.

But Kamphoni said the situation may also tilt the other way if big companies listed on the Malawi Stock Exchange continue to post poor results.

“It depends on good results from companies. The market is expected to respond favourably to the trends, but some few big companies have been pulling down performance of the market. But, it is likely that the bullish run will extend to the foreseeable future if companies continue to post good results,” Kamphoni said.

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An update shows that the Malawi Stock Exchange was marginally bullish in the month of July registering a positive return on investment of 1.95 percent and an increase in total traded volume.

In total, the market realised K79 million from 9.8 million shares which changed hands, an improvement from the 5.4 million shares traded in June last year.

Daily average share trades exhibited similar trends where the market registered an average daily volume of 467,739 shares compared to 261,892 shares traded in June 2016, according to a latest update from the market

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The market also registered a positive return on index as reflected in the upward movement of the Malawi All Share Index from 13126.13 points registered in June 2016 to 13381.50 points registered in July 2016, giving a return on index of 1.95 percent.

In an earlier interview, Kamphoni observed that there is need to introduce more trading items on the Malawi Stock Exchange to create more activity and push up traded volumes.

He said only 10 percent shares are available for trading with the bulk of the shares held for long term investments by holding companies and pension funds leading to increased inactivity on the market.

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