The Malawi All Share Index (Masi), the overall measure of Malawi Stock Exchange (MSE) performance, went up 12.18 points last week on account of share price gains in three counters.
The Masi closed the week at 6 926.63 points.
The gain in NBS Bank, National Investment Trust Limited (Nitl) and Press Corporation Limited (PCL) pushed up the domestic share index, the gauge of domestic counters’ performance, by 9.72 points to 5 428.05 points from the prior week’s 5 418.32 points, according to the Malawi Stock Exchange (MSE) weekly market report.
NBS Bank gained 50 tambala to close the week at K9 from K8.50 per share, Nitl ended the week at K17.25 per share, a 25 tambala gain while PCL closed the week at K188.97 per share from the previous week’s K188.
The foreign share index, anchored by one foreign counter, Old Mutual plc (OML) remained steady at 1 131.18 following the counters’ no share price gain stuck at K900 per share.
During the week, the market recorded trading activity in nine counters; FMB, National Bank of Malawi, NBS Bank, Nico Holdings Limited, Nitl, PCL, Standard Bank, TNM plc and OML.
Despite not registering any share price gain during the week, Nico Holdings led in volumes of shares traded at 2.2 million at a market price of K14.30 per share.
FDH Stockbrokers Limited attributed the demand in Nico Holdings stocks to the release of a trading statement which indicated that its half year profit is expected to be more than 100 percent over the previous period.
“Offers at respective market prices on demanded counters continue to pose as a challenge on the local bourse,” reads a commentary from FDH Stockbrokers Limited.
In the second quarter (Q2) of this year, the 14-counter market raised K2.1 billion ($5.5 million), a jump from K1.1 billion ($4.7 million) during the same period last year.
This is out of one billion shares that changed hands in 268 trades from last year’s 309.7 million shares in 290 trades, the MSE second quarter market performance report has shown.
The jump reflects a 232.6 percent increase in terms of share volume and an 81.89 percent [15.86 percent in dollar terms] increase in share value.
“Daily average share trades exhibited similar trends. The market registered an average daily volume of 16.6 million shares compared to 4.9 million shares traded in the corresponding second quarter of 2012,” reads the report.
The average daily turnover for the second quarter 2013, according to the report, was K33.9 million ($89 278.87) compared with K18. 6 million ($77 055.96) for the corresponding second quarter of 2012, which reflects an increase of 81.89 percent (15.86 percent dollar terms).
May registered the highest in terms of both value at K1.6 billion ($4.2 million) and volume of 917 million shares.
In the quarter, the shares market registered a positive return on index reflected in the upward movement of Masi from 6 344.58 points registered in April to 6 914.45 points registered on June 30 2013.
This performance gives a return on index of 8.98 percent, (33.08 percent dollar terms) compared to 5.58 percent [-36.07 percent dollar terms] registered in Q2 of 2012.