Corporate actions and transactions that have taken place within the Malawi Stock Market (MSE) have helped up its return on investment there by growing the market, a local market analyst has said.
African Alliance Securities Limited chief executive officer Armstrong Kamphoni, speaking in an interview with Business News on Tuesday in view of the performance of the local shares market, said the new listings on the stock market came with a lot of publicity, which made the market visible and attracted interest from investors.
“When there are corporate actions on the stock exchange take the FMB and FMBCH restructuring, a lot of interest is drawn from the investing public. For instance, the restructuring of these two companies draws excitement from a lot of investors evidenced by the growth of share price from K18 to K67.
Going forward he said market players wish for more active stock exchange with more players who can come in and raise capital.
“The Reserve Bank [of Malawi] and the [Malawi] Stock Exchange [MSE] are involved in the financial literacy awareness campaigns which are also extended to our local companies. It is good that the economy has more companies listed as this gives a window for capital to follow in the country.
“Most developed countries have capital that is driven by stock exchange. If we can grow our market to a level where we have more liquidity and trading activity the better for us but this can only be achieved if we have listed more companies and have more participants,” he said.
MSE operations manager Esnat Chilije while observing that some infrastructure challenges such as the intermittent power supply continues to affect business operations negatively, she was optimistic that measures are being taken to resolve the power deficit in the country.
She said to further consolidate the benefits to the capital market there is need for deliberate policies that will ensure the stability of the macroeconomic indicators in the long term.