The 16-counter Malawi Stock Exchange (MSE) registered a negative return on index in April, the first time in one year triggered by share price drop on some listed counters.
MSE data shows that the Malawi All Share Index, the gauge of overall market performance, registered a negative 0.67 percent return on index following the drop in share prices for FMB Capital Holdings plc and TNM plc.
FMB Capital Holdings Limited share price declined by 22 percent from K1 384.48 per share to close the week at K1 134.29 per share while TNM share price dipped by 8.38 percent from K24.93 per share to close the week at K23 per share, which was enough to offset share price gains in Press Corporation plc and Standard Bank plc.
A stock market investor and chairperson of Minority Shareholders Association of Listed Companies in the Central Region, Purity Chitalo, said in an interview on Sunday that the price fluctuations were expected as some stocks are yet to rediscover their actual values.
“Considering that most financial results have been published just last week, we expect that its impact would be seen in May, especially considering that most companies have done really well,” he said.
MSE chief executive officer John Kamanga said in an earlier interview that the market has continued to exhibit resilience and strong performance in recent years despite the country’s economy tanking.
He said these achievements highlight the strength, resilience and potential of the country’s capital market as a platform for creating sustainable wealth and fostering economic growth.
