MSE drifts into positive territory

The Malawi Stock Exchange (MSE) drifted into the positive territory in the first quarter (Q1) of 2012 registering a positive return on index (ROI) of 5.54 percent compared to negative 1.81 percent in the previous year’s quarter.

This is evident in the upward movement of the Malawi All Share Index (Masi)—the measure of local shares market performance—to 5 667.12 points at the end of March from 5 369.42 points in January this year, according to the market peformance report for January to March 2012.

In the report released on Monday, the MSE attributed the price gains in seven counters; FMB, Illovo Sugar (Malawi) Limited, National Bank of Malawi, NBS Bank, Nico Holdings Limited, Standard Bank and Old Mutual plc as the major drivers in the upward movement of the Masi arising from an increase in both the Domestic Share Index by 5.52 percent and the Foreign Share Index by 7.75 percent.

During the period under review, the MSE raised K760.7 million ($4.5m), lower than what was raised in the same period last year K3.8 billion ($25.4 million).

“This reflects a -91.17 percent decrease in terms of share volume and a -80.14 percent (-81.94 percent in US dollar terms) decrease in share value,” said the report adding that daily average share trades exhibited similar trends with the market registering an average daily volume of one million shares compared to 12.1 million in the first quarter of 2011.

The average daily turnover for the first quarter of 2012 dropped to K12.2 million ($74 008.50) compared with K61.7 milllion ($409 789.26) in the first quarter of 2011, reflecting a decrease of -80.14 percent (-81.94% in US dollar terms).

But the March 2012 registered the highest in terms of both value at K531.5 million ($3.2 m) and volume of 58.1 million.

The local shares market has 14 counters with one foreign, OML.