Nico Asset, expert upbeat on stagnant capital market

Despite the capital markets remaining underdeveloped, Nico Asset Managers chief investment officer Emmanuel Chokani says they see more companies listing on the Malawi Stock Exchange (MSE) to increase investments that can be raised through the bond market.

In an interview on Monday on the sidelines of a week-long investment training organised by Nico Asset Managers, he said investment opportunities are few at the moment, but the coming in of the Pensions Act has brought in more money into the market.

“This presents a great opportunity to do more on the capital market by increasing the number of companies listed and raise new types of debt instruments such as corporate bonds which we will be seeing more as we go on,” he said.

In a separate interview, a United Kingdom-based expert trainer on corporate finance and capital markets, Richard Clayton, said as the country’s market expands and matures, more companies will see the importance of the capital market.

He said it is in everyone’s interest that at some stage, the bond market will evolve and develop as it helps to establish the market price for risk, which means people can make better investment decisions.

“Capital markets will develop over time, but more companies have to be listed first so that investors have more options on where to put their money,” he said.