FMB, Mpico shares drop
Two stocks tumbled last week knocking down the Malawi All Share Index (Masi) by 45.29 points, as investors react to the company’s earnings, a market analyst has said.
FMB which traded the highest number of shares on the bourse shed 10.2 percent to close the week at K7 from K7.72 per share. Mpico Limited, another loser, lost 20 tambala to end the week at K2.50 per share, according to the weekly market report for the week ended April 27 2012.
The drop in the two counters’ share price affected the domestic share index, the measure of local companies performance, which went down by 36.15 points to 4 549.36 points from 4 585.52 points the previous week.
Market analyst Davis Manyenje, who is also managing director at FDH Stockbrokers Limited said investors are still uncertain in terms of Mpico’s cash flow.
Shareholders are yet to be paid last year’s final dividend of K91.9 million, an equivalent of eight tambala per share, the company’s board communicated to the shareholders at the 38th Annual General Meeting (AGM) in Blantyre.
On FMB, he said demand and supply could have played a part in the share price drop but also added that investors are comparing the company’s year-end results with their peers.
During the week, the market trading activity in six counters, namely, FMB, Illovo Sugar (Malawi) Limited, Mpico Limited, NBS Bank, Press Corporation Limited (PCL) and Standard Bank.
