MSE eyes more govt bonds, listings in 2016
Malawi Stock Exchange (MSE) plans to list two more government bonds and list at least one firm listing on the market in 2016.
MSE chief executive officer John Kamanga said in an interview with Business News on Tuesday the bourse has put in place strategies deliberately encourage investors.
He said the market, which will be clocking 20 years of existence next year, has planned market awareness campaigns targeting insurers to understand the benefits that can be realised from investing in the stock market.
“We are targeting investors to access the market for their benefits such as the dividend income, capital gains and use of shares as collateral and also [to make them] realise the importance of investing and savings,” said Kamanga.
He said government has already set precedence in issuing bonds that were listed on the market this year, saying the development is positive to the stock market.
“We have already seen that government is geared towards raising more capital. Government has already listed three bonds on the market and is looking forward to listing extra bonds evidenced by the issuance of almost four bonds through the central bank this year,” he explained.
Malawi stock market has not listed new companies on the bourse for the past eight years, a situation worsened by a financial crisis back in 2009 whose indirect effects affected the stock exchange.
During the period, some foreign investors took advantage of cheaper instruments which were found in some developed countries because they were selling at a cheaper price.
In the end, the investors started disinvesting from the local bourse. But, Kamanga expressed confidence that 2016 will be a year of growth for the market, which has been dormant in terms of listings.
“Much as we have picked up from the financial crisis, the fear of the unknown is still there. In view of this, we are not resting, but still courting potential investors to address their needs so that they can come and invest in the market,” he said.
