MSE in mixed fortunes, registers 61% capital growth
The Malawi Stock Exchange (MSE) exhibited mixed fortunes in 2013 out of the sampled four stock exchanges in central Africa, with some companies on the 14-counter bourse performing well while others struggled to make a mark.
The Central Africa Stock Exchanges (Case) handbook 2014 sponsored by FMB, one of the four MSE-listed commercial banks, shows that all the four markets, MSE, Botswana Stock Exchange (BSE), Lusaka Stock Exchange (LuSE) and Zimbabwe Stock Exchange (ZSE) put in good gains during the year.
It said MSE’s Malawi All Share Index (Masi), the overall measure of the market’s performance, led with a rise of 108.3 percent and a capital growth in dollars of 61 percent.
“This year, it is going to be harder. Much of the gains in Zambia in the first quarter, due almost entirely to a 65 percent increase in Lafarge, have been lost given the depreciation of the [Zambian] kwacha.
“Botswana has had a flat first quarter as gains in retailers have been offset by losses in the banks, while Malawi’s Treasury bills market continues to distract domestic investors and foreign inflow are limited,” said the handbook’s analysis of the performance of the markets.
The handbook shows that MSE, with 14 counters, traded 4.41 billion shares on its bourse, ahead of ZSE with 62 active counters, which transacted three billion shares.
BSE, with 35 active counters, topped with 708.3 billion shares changing hands trailed by LuSE at 275.9 million shares which has 22 counters.
In terms of market capitalisation, ZSE had the highest at $5.2 billion trailed by BSE at $4.9 billion followed by LuSE $4.1 billion and anchored by MSE at $1.2 billion.
The handbook shows that BSE had 18 risers against 16 fallers, MSE nine risers against five fallers, LuSE 14 risers against seven fallers while ZSE registered 37 companies which gained against 23 fallers.
Of the 44 risers during the review period, MSE had nine counters, National Bank of Malawi, Standard Bank, Old Mutual Malawi, Illovo Sugar (Malawi) Limited, FMB, National Investment Trust Limited, TNM plc, Press Corporation Limited and NBS Bank that registered a rise.
Conversely, according to the handbook, three MSE counters Mpico Limited, Real Insurance Company of Malawi Limited, Blantyre Hotels Limited (BHL) were among the 42 counters that registered a fall.
Out of the 20 sampled counters, TNM plc, Nico Holdings Limited were among the top 20 companies that are liquidity while BHL, Illovo Sugar (Malawi) Limited and Standard Bank were the most illiquid.
Analysts regard MSE, one of the tiny markets in the sub-region, as the active and vibrant.
