The 16-counter Malawi Stock Exchange (MSE) has started on a low note in 2026 with the Malawi All Share Index (Masi) dropping by 0.1 percent, a development stock market analysts say is a continuation of the 2025 share price correction.
MSE data for the week ending January 9 show that the Malawi All Share Index, the overall measure of market performance, dropped from 597 219.78 points to 598 062.8 points as seven companies registered share price losses.
In an interview on Sunday, Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said apart from share price correction, investors have also adopted a cautious approach due to introduction of capital gains tax.
“These movements should be viewed as a healthy market correction, allowing prices to realign with underlying fundamentals,” he said.
Market data shows that seven counters in banking and telecoms registered share price losses while seven others gained with two remaining steady.
Minority Shareholders Association of Listed Companies secretary general Frank Harawa attributed the subdued performance to the introduction of capital gains tax, which is discouraging long-term investment.
In a separate interview, stock market investor Brian Kampanje said the retail investors confidence is waning as the uncertainty on the capital gains tax is not ideal in the capital markets.
Stock market investor Purity Chitaro said while the recent decline is concerning, it is important to note that share investments are long-term.
The capital tax gains, introduced in the Mid-Year Budget, will now apply on all share disposals despite the length they have been held, unlike in the past where shares held for more than one year were being exempted.
