Mpico, OML up the market
Stock market analysts have attributed the share price gains in Mpico Limited and Old Mutual plc (OML) to price correction and strength of the counter, respectively.
The gain, according to a weekly market report from the Malawi Stock Exchange (MSE), pushed up the indicative share index by 11.24 points to close the week at 5 886.82 points.
Market analyst Davis Manyenje, who is also managing director of FDH Stockbrokers Limited, said on Monday Mpico’s share price is correcting itself after a ‘market bleed’ the past weeks.
“There is no significant news on Mpico Limited to trigger share price gain. We expect the price variation to continue,†he said.
On OML, the only foreign counter on the local bourse, Manyenje said the strength of the counter has made a significant contribution to the share price rise.
He said demand has also been heightened by investors who are buying the stock with the intention of selling it in South Africa where the company is also listed on the Johannesburg Stock Exchange (JSE).
“Investors are also hedging because of the expected dividends to be declared in pounds,†he said, adding that some are buying for arbitrage purposes.
In the week under review, Mpico gained 20 tambala to close the week at K2.50 per share whereas OML jumped by nine percent to K500 per share.
With the Mpico share price rise, the domestic share index-the measure of domestic counters’ performance-inched upwards by 4.35 points to 4 643.08 points, shows the market report.
