The telecommunications sector has regained strong performance on the Malawi Stock Exchange (MSE) with both Airtel Malawi plc and TNM plc shares surging 34 percent and six percent, respectively so far.
Market data show that telecom players whose shares dipped in January from K90 to K84 and from K24 to K19.98 for Airtel and TNM respectively, recovered this month with Airtel shares trading at K113 and TNM at K26.03 as of Friday.
The sector has since contributed to the 18 percent return on index to 264 396.39 points that the Malawi All Share Index registered during the first three weeks of February led by FMB Capital Holdings, whose share value jumped 76.7 percent to K1 129 per share.
Meanwhile, Airtel’s soaring share value has also impacted positively on its market capitalisation which hit K1.2 trillion, cementing it’s status as the only non-banking company with above K1trillion capitalisation on the sixteen counter bourse.
In an interview, equity investment analyst Kondwani Makwakwa said the strong performance was anticipated.
He said: “Some investors recognise the potential in stocks perceived as undervalued and take a long-term perspective on their future growth, leading to increased demand and driving prices higher.
“In the absence of any macroeconomic downturn, the outlook remains positive.”
Stock market investor and director of minority shareholders of listed companies Brian Kampanje attributed the soaring shares of telecom players to the bullish market which is marked by optimism of the shareholders.
Earlier, MSE chief operations officer Kelline Kondowe said the market remains resilient though the medium-term outlook depends on how various sectors and individual companies could be affected by market dynamics.
