MSE closes higher in July,up 3.53% report shows
The 16-counter Malawi Stock Exchange (MSE) registered a positive performance in July, with 10 counters registering share price gains, sending the overall market measure up by an average 3.53 percent, a market report shows.
This is despite the local bourse registering decrease in both volume and value of traded shares.
Year-to-date, return on investment (ROI), an approximate measure of an investment’s profitability, stands at 81.34 percent, a jump from 16.58 percent in a similar period last year.
The MSE Market Performance Report for July 2023 shows that the Malawi All Share Index (Masi), the overall measure of the local shares market’s performance, inched upwards from 108 656.97points registered in June to112 497.02 points in July.
Reads the report in part: “The price gains registered on National Bank, Standard Bank, FMB Capital Holdings, Press Corporation Limited, National Investment Trust Limited, NBS Bank, TNM, FDH Bank, Airtel and Sunbird Tourism were enough to offset share price losses in Nico Holdings, Icon properties and Mpico resulting into an upward movement of the Masi.”
During the review period, the market transacted 37.47 million shares, raising K5.61 billion in 947 trades. This is lower than 93.41 million shares transacted in June, which raised K12.12 billion in 1409 trades.
This reflects a 59.88 percent decrease in volume of trades and a 53.65 percent decrease in share value, according to the report.
“Daily average share trades exhibited similar trends where the market registered an average daily volume of 1 784 472 shares compared to 4 246 178 shares traded in June 2023, reflecting a decrease of 57.97 percent,” reads the report.
The average daily turnover for July 2023 was K267 582 698.33 compared to K551 114 896.76 in June 2023, reflecting a decrease of –51.45 percent.
Minority Shareholders Association of Listed Companies secretary general Frank Harawa in an interview described the performance of the market as exceptional saying investors are smiling all the way to the stock exchange.
“2023 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 and our gains,” he said.
Speaking separately, Blantyre-based investor Julius Kasiya branded the market as 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.
Stockbrokers Malawi Limited chief executive officer Noel Kadzakumanja observed in an interview that the development is good news to the investors and the market.
He said: “This is exciting news to investors as it entails that they will be pocketing more from their investment. The development coming at a time when the economic environment remains subdued just shows how resilient the listed companies have been and increases the confidence that investors have in these companies and the stock market in general.”
MSE operations manager Kelline Kondowe is on record as having said the outlook for the market is positive and that the performance of the market is evidence that the stock market offers a competitive avenue for value preservation and creation for investors even in challenging macroeconomic environments.
