The 14-counter Malawi Stock Exchange (MSE) says it has broken record 6 396.64 points since inception in 2008 with the all share index hitting 6 552.53 points in May giving a return on index of 3.02 percent.
This, according to the shares market’s monthly report for May 2013, resulted in increases in both total value traded and volume compared to the month before.
The report shows that from May 1 to 31 2013, a total of 917 million share changed hands raising K1.6 billion ($4.2 million) compared to K159.7 million ($667 625) in May 2012.
“In April 2013, the market transacted a total of 72.1 million shares at a total consideration of K381.9 million [$934 205] in 92 trades,” says the report, an equivalent to 1170.77 percent increase in terms of share volume and 323.52 percent (358.41 in dollar terms) increase in share value.
In the month, the market registered an average daily volume of 43.6 million shares in May 2013 compared to 3.4 million in April 2013.
The average daily turnover for May 2013 was K77 million ($203 927.94) compared to K18.1 million ($44 485.96) for the previous months, reflecting an increase of 323.52 percent (358.41 percent in dollar terms.
The MSE, registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (Masi), the overall measure of market performance, from 6 360.60 points registered on April 30 2013 to 6 552.53 points as at May 31 2013, giving a return on index of 3.02 percent (29.75 percent dollar terms).
The price gains registered by Illovo Sugar (Malawi) Limited, National Bank of Malawi, NBS Bank, National Investment Trust Limited, Standard Bank, TNM and Old Mutual plc (OML) were the major drivers of the market performance.
This resulted into an increase in both the foreign share index, anchored by OML and the domestic share index, the gauge of domestic counters’ performance, by 0.68 points from 1 106.04 points to 1 113.58 points and by 3.06 points to 5 130.97 points from 4 978.43 points respectively.
Commenting on the movement of the kwacha, the MSE says the local unit continued appreciating against all major trading currencies as at May 31 2013.
“The appreciation of the kwacha is a result of continued tobacco inflows coupled with the liquidity squeeze of the kwacha in the market,” suggests the MSE report.
The MSE, regarded one of the tiniest in the sub-region but vibrant, has 22.4 billion shares on issue.