Listed companies post good half-year results
The 14-counter Malawi Stock Exchange (MSE) remained buoyant in the third quarter (July—September) of 2013, thanks to good half-year results most of the listed companies published, a market analyst has said.
Most of the listed companies have published half year results that beat their forecast by a wide margin.
The latest MSE third quarter market report for 2013 has indicated that the shares market gave a return on index of 53.18 percent (36.96 percent in dollar terms) compared to -0.63 percent (-8.25 percent in dollar terms) in the prior period in 2012.
“It [the market] recorded an increase in total traded volume, value and deals in the review period compared to the corresponding period in 2012,” reads the report.
Market analyst Nelson Mkwende, who is also manager at FDH Stockbrokers Limited, told Business News yesterday that with the better than expected half year results, most companies paid out good dividends.
He said investors are looking for good year-end results.
“Demand for shares was up for most of the companies. We ended up with more buyers than sellers,” explained Mkwende.
He said economic fundamentals—inflation, interest and exchange rates—were also conducive during the quarter under review.
During the quarter, the general rise in the prices of goods and services trended downwards by 1.9 percentage points to 23.3 percent from 25.2 percent in July, according to the National Statistical Office (NSO), the commercial banks’ rate of borrowing also inched downwards from above 40 percent to an average of 37 percent with the kwacha exchange rate against major trading currencies stabilising.
Mkwende said during the period, there was not much mopping of excess kwacha by the Reserve Bank of Malawi (RBM) and fund managers had a lot of money to spare.
In terms of trade performance analysis, the MSE report shows that from July 1 to September 30 2013 a total of 889.8 million shares changed hands raising K2.7 billion [$8.1 million] in 420 trades.
In contrast to the same period last year, the market transacted a total of 256.9 million shares at a total of K1.2 billion ($4.2 million) in 176 trades, reflecting a 246.33 percent increase in terms of share volume and a 130.17 percent (93.86 percent dollar terms) increase in value.
“Daily average share trades also grew as the market registered an average daily volume of 14.3 million shares compared to 4.1 million shares traded in the corresponding third quarter of 2012,” reads the report in part.
The average daily turnover for the third quarter 2013, according to the report, was K44.6 million ($131 906.58) compared with K19.3 million ($68 042.60) for the corresponding third quarter 2012, an increase of 130.17 percent (93.86 percent in dollar terms).
According to the report, July and August registered the biggest volume of 415.4 million shares and highest value of K1.4 billion ($4.3 million) respectively.
The positive return on index—measuring market performance, including price movements—the market registered in reflected in the increase in the Malawi All Share Index (Masi) from 6 923.07 points registered in July to 1 0604.97 points on September 30 2013.
The price gains registered by 11 counters; FMB, Illovo Sugar (Malawi) Limited, NBS Bank, National Bank of Malawi, Nico Holdings Limited, National Investment Trust Limited, Press Corporation Limited, Standard Bank, Sunbird, TNM plc and Old Mutual plc, were the major drivers in the upward movement of Masi, arising from an increase in both the domestic share index (53.90 percent) and the foreign share index (14.61 percent).
