Newly-listed Icon Properties plc share price tumbled last week to K11.95, a move a market analyst has linked to a price discovery phase the stock is going through.
Icon Properties plc, which broke MSE’s 10-year listing drought last month, brought excitement to investors as its share price increased by 37 percent from K8.75 on listing day on the Malawi Stock Exchange (MSE).
But the company, which brought about 1.68 billion shares on the bourse, lost five tambala to close the week at K11.95 from K12 per share, according to the weekly market report for the week ended February 22.
In an interview yesterday, a market and investment analyst, however, said
the drop is largely due to the fact that Icon is a new company and without a track record investors are still trying to figure out what the real price should be.
“What is happening is that the market price went too high on listing day, so we think the price is going down just to reflect on a more appropriate price,” said the analyst.
Minority shareholder secretary general Frank Harawa said in an interview the development is not a cause for concern to shareholders, saying at K11.95 per share, the share price remains attractive.
“We are not quite alarmed with the price drop . We feel Icon remains a promising property counter on the MSE and the assurance that we have in the board of the company gives us hope,” he said.
During the week, the market registered trading activity in all but three counters, namely, Standard Bank plc, Old Mutual plc and National Investment Trust Limited.