Demand for stocks on the rise

Demand for shares on the Malawi Stock Exchange (MSE) continues as reflected in most of the counters with no volumes available at respective market prices, according to FDH Stockbrokers Limited market wrap.

“Potential sellers are hoarding in speculation of an increase on the counters’ market share price,” said the firm in its commentary of the local shares market for the week ending October 4 2013.

In the week under review, three counters, National Bank of Malawi (NBM), National Investment Trust Limited (Nitl) and Standard Bank, gained in share price, in turn pushing up the indicative Malawi All Share Index (Masi) by 34.02 points.

This was a result of the increase in the domestic share index, the measure of domestic counters’ performance, by 27.16 points.

The foreign share index, anchored by one counter, Old Mutual plc (OML) remained stuck at 1 296.46 points due to no share price gain on the counter.

In the week, according to the market report, NBM gained by K1.35 to close the week at K173.55 whereas Nitl added 20 tambala to end the week at K27.70. Standard Bank closed the week at K298.65, a gain of K3.65.

With a turnover of K18.7 million [$49,756.44], 2.1 million shares changed hands on the market out of nine counters, FMB, Illovo Sugar [Malawi] Limited, Mpico Limited, NBM, NBS Bank, Nitl, Press Corporation Limited (PCL), Standard Bank and TNM plc that registered trading activity.

But FDH Stockbrokers said the release of Nico Holdings Limited first half financial results, resulted in demand of up to 12 million shares, but with no share available at K15.15 per share.

The 14-counter MSE is regarded as one of the tiniest but vibrant markets in the sub-region.