Company-specific factors,industry trends affect MSE
Malawi Stock Exchange (MSE) chief operations officer Kelline Kanyangala says the macroeconomic environment, company-specific factors and industry trends continue to influence price fluctuations on the 16-counter market.
She said this on Monday in reaction to the monthly performance of the MSE, which showed that seven counters lost their share value while eight others had their shares gaining.
Kanyangala said in the period under review, the market was operating in a high interest environment as some investors opted to invest in the money and debt market, leading to the downward movement of the Malawi All Share Index (Masi).
She said: “At the same time, we saw that some companies had been affected by the developments in the macroeconomic environment and thus their performance is projected to be lower than last year.”
Kanyangala, however, expressed optimism that in the long-term, the stock market will still provide a reasonable avenue for investors, saying overall, the share prices are appreciating.
MSE data shows that from February 1 to March 8, Airtel plc, FDH Bank plc, FMB Capital Holdings, Icon Properties plc, Mpico plc, Press Corporation plc and TNM plc lost some share value.
As a percentage of the original shares, TNM plc witnessed the largest loss in share value, with shares dropping by 25 percent from K16 per share to K12 followed by Airtel whose shares dropped 9.26 percent from K55.10 to K50 during the review period.
Meanwhile, eight other counters, Blantyre Hotels Limited plc, Illovo Sugar (Malawi) plc, Nico Holdings plc, Sunbird Tourism plc, National Investment Trust, NBS Bank plc, National Bank of Malawi plc and Standard Bank plc saw their shares gaining.
Sunbird Tourism plc was the biggest winner with the company’s share price rising by 0.5 percent from K195.02 to K196 followed by FDH Bank plc, whose share price rose by 0.22 percent from K65 to K65.14.
Old Mutual Malawi plc was the only counter whose share price did not change during the review period.
In a separate interview, market analyst Bond Mtembezeka said the outlook still remains positive, considering that most listed companies continue to perform well.
He, however, cautioned that subdued economic activity and risks associated with the election period may pose downside risks.
“The outlook still remains positive as most listed entities continue to perform well, but subdued economic activity and the risks that are associated with years closer to elections pose downside risks,” said Mtembezeka.
Personal finance management expert Audrey Mwala is quoted as having said that companies that have high exposure to foreign currency obligations have suffered from the effects of 44 percent kwacha devaluation effected last November and the foreign exchange shortages that rocked the country towards the end of last year.
