TNM dips stock market
Shareholders of TNM plc will probably end the year on a bad note as the counter’s share price has continued to dip two weeks in a row.
Stock market analysts say there are no chances that the stock price will gain before the year ends.
They have attributed this to the expected 30 percent drop in after-tax profit from the previous year largely because of foreign exchange losses incurred following the 50 percent devaluation of the kwacha on May 7 this year, according to the company’s trading statement issued this month.
Last week, according to the Malawi Stock Exchange (MSE) weekly report, TNM share price lost 6.2 percent or 10 tambala to close the week at K1.40 per share with four million shares transacted.
The loss in TNM share price pulled down the indicative Malawi All Share Index (Masi) by 20.35 points to 6 015. 51 points following the drop in the domestic share index by 16.24 points, despite Standard Bank gaining 68 tambala to close the week at K128.23 per share with more than 22 000 shares transacted.
Analysts have attributed the bank’s good tidings to the expected profit jump in the year ended December 31 2012.
Standard Bank company secretary Etness Chanza said in trading statement on Friday that the bank’s after-tax profit is expected to be 70 percent higher than the previous period.
During the week, the MSE recorded trading activity in eight counters, namely; FMB, Illovo Sugar (Malawi) Limited, National Bank of Malawi, Nico Holdings Limited, National Investment Trust Limited, Standard Bank and the only foreign counter, Old Mutual plc (OML).
A total of 4.4 million shares were transacted during the week raising K26.7 million ($79 310.42) in 12 deals, according to the weekly report.
