MSE value drops 44 %
The Malawi Stock Exchange (MSE) raised K3.9 billion in 2012, 44 percent down from K7 billion the year before, the market’s annual performance report has indicated.
Market analysts say the drop in value is on account of less number of shares transacted as compared to the year before, hence less revenue.
In the report released yesterday, the MSE says the market transacted 667 221 045 shares, a drop from 1.5 billion shares the year before.
“Daily average share trades exhibited similar trends as the market registered an average daily volume of 2.6 million shares compared to 6.4 million shares traded in 2011, reflecting a 58.4 percent decrease,” says the report.
The report says the average daily turnover for 2012 was K16 million ($65 257.74) compared to K28.4 million ($215 107.64) for 2011, reflecting a decrease by 43.7 percent.
The highest sales in terms of both volume and value was registered in June with 274.4 million shares raking in K793 million, according to the report.
In the year, the Malawi All Share Index (Masi), the measure of market performance, registered a positive return of 12.03 percent compared to 8.41 percent in 2011 despite a decrease in both traded volume and value.
The May 7 2012 devaluation of the kwacha and the adoption of a market-determined exchange rate eroded the market’s gains in US dollar terms.
The MSE says the kwacha has since depreciated by 102.77 percent by December 31.
But the market, according to the report, continued its positive return on index in the first and second quarter of 5.54 percent and 5.58 percent respectively with the third quarter registering a negative return on index of -0.63 percent and later to a positive return of 1.68 percent in the fourth quarter of 2012.
“The year-on-year return on Index for 2012 was 12.03 percent higher than 8.41 percent registered in 2011,” says the MSE report, adding that Masi increased to 6015.51 points by December 31 from 5369.42 points in January 2012.
In the year, nine price gainers Old Mutual plc, National Investment Trust Limited, Nico Holdings Limited, Illovo Sugar (Malawi) Limited, NBS Bank, FMB, National Bank of Malawi, Standard Bank and Press Corporation Limited were the major drivers in the increase in Masi, on account of a rise in both the Domestic and Foreign Share Indices which have registered positive return on indices of 11.49 percent and 59.63 percent respectively.
