MSE investors relish good performance
Investors on the 16-counter Malawi Stock Exchange (MSE) continue to smile all the way to the bank as the return on investment or profit has increased by 35 percent in the second quarter (Q2) of this year.
This means that the return on investment, according to MSE 2023 Q2 Market Performance Report, has more than quadrupled over the past year as it has gone up from eight percent during a similar period last year, giving a better deal to shareholders of listed firms.
The report published yesterday further shows that in the year to-date, return on investment stands at 75.15 percent, and this means that MSE investors have earned more than they realised in the previous year.
MSE has attributed the good performance to the price gains in 13 counters, namely NBS Bank plc, TNM plc, National Investment Trust Limited plc, FDH Bank plc, Icon Properties plc, Sunbird Tourism plc, Illovo Sugar (Malawi) plc, FMB Capital Holdings, Airtel Malawi plc, Old Mutual plc, Standard Bank plc and National Bank of Malawi plc.
The report shows that during the review period, MSE raised K24.95 billion, which was higher than what was raised in the same period last year at K11.9 billion.
Reads the report in part: “This reflects a 39.91 percent increase in terms of share volume and a 108.35 percent increase in share value.”
It said that of the shares traded, 8.8 million and 2.8 million, were from Airtel Malawi plc and Nico Holdings plc negotiated deals traded at K1.3 billion.
Speaking in an interview yesterday, Stockbrokers Malawi Limited chief executive officer Noel Kadzakumanja said the development is good news for the investors, the market and the economy at large.
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 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.”
Minority Shareholders Association of Listed Companies secretary general Frank Harawa said investors are delighted as the market continues to perform beyond expectation.
He said: “The year 2023 is a 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, thereby pushing stock prices and our gains.”
Speaking separately, Blantyre-based stock market investor Julius Kasiya said the market is a viable investment avenue.
He said: “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.”
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 shares market offers a competitive avenue for value preservation and creation for investors even in challenging macroeconomic environment.
