Slow start for MSE in 2015
The Malawi Stock Exchange (MSE) started 2015 on a slow start with no share price gain despite seven counters recording trading activity.
The 14-counter MSE, which has traded for six years without any new listing, was flat in the week leading up to the New Year.
Sugar manufacturer Illovo Sugar (Malawi) Limited, property management firm Mpico Limited, NBS Bank, financial services firm Nico Holdings Limited, investment collective scheme National Investment Trust Limited (Nitl), mobile phone company TNM and Old Mutual Limited (OML) recorded trading activity in the week ending January 2.
The trading activity resulted in 4.7 million shares changing hands, raising K273 million ($574 777) in 25 deals.
In the week, the Malawi All Share Index (Masi), the overall measure of market performance, was steady at 14 886 points due to non-movement in both domestic share index and foreign share index, which closed the week at 11 720.43 points and 1 759.61 points respectively.
Two weeks ago, MSE listed three government bonds— debt instruments issued for a period of more than one year— touted to not only add to the diversity of listings on the local bourse, but also pave the way for the increased introduction of other more innovative financial products in future.
The three bonds amounted to K109.2 billion. They include the four-year K1.5 billion bond with a coupon rate of 9.5 percent to mature this year, K822 million five-year bond to mature in 2016 at a coupon rate of 10 percent and K1.68 billion bond with a coupon rate of 15 percent to mature in 2017.
MSE chairperson Augustine Chithenga said the listing of the bonds will raise awareness and generate interest of domestic and international investors in the country’s bond market.
