Earnings expectation drives share prices gain
Half-year earnings expectation has helped to drive share price gain on Nico Holdings Limited and TNM plc, according to NBM Capital Markets Limited market analysis.
Financial services counter Nico Holdings gained 9.3 percent to close the week at K24.05 per share while TNM closed at K3.40 per share, having gained 4.6 percent.
TNM expects its half-year profit after tax to be more than 223 percent at above K1.8 billion compared to K558 million in the prior of 2013.
“Investors responded positively to the news with the TNM share price gaining 4.6 percent to close at a three-year record high of K3.40 per share,” said the firm’s weekly market update.
However, TNM company secretary Christina Mwansa cautioned the stockholders in a statement last week, saying the information on which this trading update is based, has not yet been reviewed or reported on by their external auditors.
On other hand, Nico Holdings’ expects its half-year after tax profit to be more than 20 percent higher than the same period last year, according to a trading statement signed by company secretary Emily Makuta.
The gain in two counters pushed the Domestic Share Index, the gauge of domestic counters’ performance, by 0.64 percent to close at 10 553.56 points.
This resulted in the Malawi All Share Index (Masi), the overall measure of market performance, to gain 0.6 percent to close at a record high of 13 417.47 points.
The Foreign Share Index, anchored by one foreign counter, Old Mutual plc (OML), was steady at 1 740.76 points as the OML counter recorded no price movements, hence, no activity.
In the week under review, turnover increased 865 percent to K485 million from the prior week’s K50.2 million.
