Malawi Stock Exchange (MSE) chief executive officer John Kamanga says despite less activity on the local bourse, the 13-counter shares market is moving in the right direction.
“We have seen less activity on the stock market over the years, but the stock market does not operate on its own.
“If you look at the macroeconomic fundamentals in terms of the investment aspect in relation to the money market, interest rates on the money market have been stagnant.
“We have seen institutional investors as well as retail investors getting more returns on the stock market,” he said in an interview on Monday.
Kamanga said, for instance, last year, there was a return on index of about 62 percent, and even this year, the return will also be good anchored by positive results from listed counters.
For close to a decade now, there have been no new listings on the MSE. Instead, two companies—Packaging Industries (Malawi) Limited, now Nampak Malawi and Britam, formerly Real Insurance Company of Malawi Limited—have delisted.
Market analyst Armstrong Kamphoni said in an interview there is growing awareness about the stock market with efforts being made by both the Reserve Bank of Malawi (RBM) and MSE to reach out to unlisted companies to consider raising capital through the shares market.
“RBM is leading a campaign to show Malawians the investment opportunities provided by the stock market. But more needs to be done by all the players in this regard,” he said. n