MSE investors smile as share prices gain
Investors on the 16-counter Malawi Stock Exchange (MSE) have smiled all the way to the banks following share price gains in 15 out of the 16 firms in 2023.
A review of MSE published data shows that on average, the share prices gained by 101.6 percent between January 3 and December 29 last year.
Only Mpico plc’s share price lost value by 27.33 percent from K20.64 to K15, according to the data.
The data shows that FDH Bank plc was the highest performer, gaining about 302.99 percent followed by NBS Bank plc whose shares rose 237.94 percent from K34 to K114.90 and National Investment Trust Limited whose share price grew by 228.02 percent from K124.99 to K409.99.
Twelve out of the 16 counters, or 75 percent, had capital gains higher than the average inflation rate of 28.2 percent recorded in the past year. Of the 12 counters, the capital gains ranged from 33.57 percent to 302.99 percent.
Reacting to the development on Tuesday, Sycamore personal finance expert and founder Audrey Mwala said the share price gains mean the people who invested in the stocks have benefitted.
She said: “These returns are great and a good route for wealth creation. Getting a return of over 100 percent in one year is a great way to accumulate wealth faster.”
Mwala said investors should not be concerned about the shares that lost value because companies on the stock market usually rebound and grow over the long-term.
She said: “Companies that have exposure to foreign currency obligations have suffered from the effect of devaluation and foreign exchange scarcity.”
“Despite these setbacks, most of the companies have performed better than the previous year and they have continued to grow.”
Economic analyst Bond Mtembezeka said: “The gains are quite enormous and that is what we mean when we say stock markets are one of the best places to place your money.”
In a separate interview, Bridgepath Capital Limited chief executive officer Emmanuel Chokani cautioned investors against using the current trends to predict future performance.
He said: “While past performance can offer insights, it doesn’t guarantee future results.
“Regular analysis of market trends and economic indicators is important for informed decision-making.”
Chokani urged investors to diversify their investment portfolios to mitigate the risks and conduct market research, adding that keeping up-to-date with financial news and market analysis is crucial for making informed investment decisions. n
