Shareholders gain K350 billion on MSE
Shareholders of Malawi Stock Exchange (MSE)-listed companies gained $200 million (about K350.2 billion) in the second quarter (Q2) as total market capitalisation closed at $3.7 billion (K6.6 trillion), it has emerged.
The Reserve Bank of Malawi Financial and Economic Review published on Thursday shows that during the review period, the domestic share index, which measures the performance of local companies on the market, gained while the foreign share index, which tracks the performance of foreign firms remained static.
Reads the report in part: “The domestic market capitalisation closed higher at K5.6 trillion from K5.2 trillion in the previous quarter.
“The increase in domestic market capitalisation was driven by the share price gains registered on the eight domestic counters.”
The report indicates that the foreign market capitalisation remained static at K950 billion, adding that the movement in the share price of the two foreign counters was negligible.”
Capital market analyst Cosmas Chigwe said in an interview yesterday that the gains in market capitalisation and the Malawi All Share Index show resilience the 16-counter MSE even as the country’s economy faces headwinds characterised by rising inflation and interest rates, a volatile exchange rate and cost of living crisis.
He said: “This growth signals investor confidence despite limited liquidity and slow economic recovery. It’s a positive sign that some sectors such as the banking continue thriving despite the tough economic conditions.
“As long as the bourse continues to be dominated by financial institutions, it is likely to continue to see overall positive returns and remain a good investment option for investors.”
Minority Shareholders Association of Listed Companies general secretary Frank Harawa said it was a quarter of both exciting and disappointing outturns as only eight companies had shares performing well while some stagnated and others performed badly.
MSE chief operating officer Kelline Kondowe said in an interview yesterday that the performance in the quarter is good new to investors are they continue to register good returns on their investments.
“One of the benefits of MSE we always refer to is the opportunity it gives to the public to become part owners of businesses that are doing well,” she said.
Kondowe said they are working with some companies that have shown interest to listed on the bourse.
