Malawi Stock Exchange (MSE) has registered a negative return on the Malawi All Share Index (Masi)—the overall measure of market performance—from 14 440.24 points in January to 14 263.58 points in February to represent a 1.2 percent fall.
This is despite the market recording an increase in traded value of K106.5 million in February from K99.8 million in January, representing a 6.67 percent increase.
The 14-counter bourse, in its monthly market report for February said a total of 1 830 916 shares were transacted in February at a consideration of K106.5 million in 65 trades while in the previous month, the market transacted a total of 2 795 087 shares at a consideration of K99.8 million reflecting a 34.5 percent decline in terms of share volume and 6.67 percent increase in share value.
“The market registered an average daily volume of 87 186 shares in February compared to 133 099 shares in January where as the average daily turnover for February stood at K5 071 799.35 from K4 754 877.91 recorded in the previous month, reflecting a 6.67 percent increase,” reads the report in part.
A senior market analyst in an interview yesterday said it will be difficult for the market to register gains as investors have fled the market due to economic underperformance the country is facing
“We are coming from a background and still are in an environment where inflation rates, interest rates are high and the kwacha itself has not been stable, making it hard for people to borrow from the banks.
Less borrowing means less money that people use to spend on investment avenues and stock market expects people to invest residual income and if you do not have such cash, you forego such investments,” he said.
The report said the price gain registered by one counter; Sunbird Tourism Limited was not enough to offset share price losses registered by four counters, FMB, NBS Bank, NITL and TNM resulting into a decrease in the domestic share index by 1.24 percent from 11365.60 points to 11225.08 points.
MSE has 14 listed counters which include FMB, Illovo Sugar Malawi Limited, Malawi Properties Investment Company Limited, National Bank of Malawi, NBS Bank, NICO Holdings Limited, National Investment Trust Limited, Press Corporation Limited, Standard Bank Limited, Sunbird Tourism Limited, Old Mutual plc, Britam Insurance Company, Blantyre Hotels Limited and Telekom Networks Malawi.