The Malawi Stock Exchange (MSE) drifted into a positive territory in the second quarter of 2020, registering a positive return on index of 2.09 percent compared to negative 3.56 percent in the previous quarter.
This is reflected in the upward movement of the Malawi All Share Index (Masi)—the measure of local shares market performance—to 29 784.70 points at the end of June from 28 857.39 points in April this year, according to the market performance report for May to June 2020.
In the report released on Friday, the 15-counter shares market attributed the price gains in five counters, namely NBS Bank plc, Airtel Malawi plc, Icon Properties plc, Standard Bank plc and National Bank of Malawi plc.
During the period, the domestic share index increased by 4.06 percent while the foreign share index fell by –23.27 percent.
The report further shows that MSE raised K6.75 billion (about $9.17 million) which was lower than what was raised in the same period last year at K15.13 billion ($20.4 million).
“This reflects a –13.28 percent decrease in terms of share volume and a –55.35 percent [-55.05 percent in dollar terms] decrease in share value,” reads the report in part, adding that of the shares traded—18.67 million and 1.8 million—were Nico Holdings plc and Press Corporation plc negotiated deals, respectively.
According to the report, daily average share trades exhibited similar trends where the market registered an average daily volume of 2.8 million shares compared to 3.3 million shares traded in the corresponding second quarter of 2019, reflecting a decrease of –13.28 percent.
The average daily turnover for the second quarter of this year was K109 million ($147 948.01) compared with K244 million (about $329 110.75) for the corresponding second quarter 2019, reflecting a decrease of –55.35percent.
In recent months, MSE performance has been sluggish, a development market analysts say is anticipated due to a hostile business environment.
Last week, a Blantyre-based market analyst Armstrong Kamphoni, who is also chief executive officer of Cedar Capital, said there has been an improvement in the performance of telecoms firms on the market due to the confidence investors have in the sector.
He said: “The valuations of the firms in the telecoms sector are not considered demanding compared to the region.
“Telecoms remain attractive despite the impact of Covid-19 as they are cash generators.”