Shareholders of firms listed on the Malawi Stock Exchange (MSE) are smiling all the way to the bank as the 16-counter market has recorded good performance in the first four months of this year, braving the current economic turbulence.
The MSE market performance analysis contained in a Bridgepath Capital Limited April Monthly Economic Report and MSE daily market reports show that 11 out of the 16 counters have recorded share price gains.
The share price gains have pushed up the return on investment to 39.37 percent from 3.45 percent recorded during the same period last year.
Speaking in an interview yesterday, Minority Shareholders of Listed Companies secretary general Frank Harawa said demand for stocks has pushed up prices.
He said: “This is one year we will live to remember because we have earned money that we have never made before.
“The developments in the stock exchange have ignited excitement as demand for shares is on the rise, in the process pushing stock prices.”
Harawa said last week he placed a bid to buy shares from one company whose share price was at K15, but bought it at K22.
“This shows the market is now attractive to investors,” he said.
The data shows that Airtel Malawi plc, FDH Bank plc, Illovo Sugar (Malawi) plc, National Banks of Malawi plc, NBS Bank plc, Nico Holdings plc and National Investment Trust Limited, Old Mutual plc, Standard Bank plc, Sunbird Toursim plc and TNM plc have registered share price gains.
But the data shows that stock prices for Blantyre Hotels Limited, FMB Capital Holdings, Icon Properties and Mpico Limited plc were relatively stable during the period.
Blantyre-based investor Julius Kasiya said the MSE is a viable investment avenue.
“While businesses are struggling in the current economic environment, the local shares market has saved us from this misery.
“I have earned almost double the amount invested in the market which I do not think I could have earned if I had put it elsewhere,” he said.
Another shareholder Emmanuel Chinunda said the stock market is now a viable and profitable venture which has significantly boosted the revenues.
Market analyst Bond Mtembezeka said regardless of the economic environment, most counters are performing well, particularly those in the financial sector.
“This has generated interest from potential investors, creating demand,” he said.
MSE operations manager Kelline Kanyangala in an interview yesterday said the market is responding to the performance of the listed companies, majority of whom have posted an increase in profits or have issued trading statements that profits will increase.
