The Malawi Stock Exchange (MSE) registered an increase in trading activity in May when 496.2 million shares changed hands in 294 trades during the period, raising K11.81 billion.
The performance, which is the highest recorded in a month this year, is an increase from 13.8 million shares transacted at a total consideration of K407 million in 232 trades in April.
This represents a 3484 percent jump in volume terms and 2798.08 percent in value terms.
The local shares market, in its market report for May, said daily average share trades exhibited similar trends where the market registered an average daily volume of 27.5 million shares compared to 728 618 shares traded in April 2021, reflecting an increase of 3683.44 percent.
Reads the report in part: “The average daily turnover for May 2021 was K656.2million [$822 889.31] compared to K21.4 million [$27 143.54] in April 2021, reflecting an increase of 2959.09 percent [2931.62 percent in US dollar terms].”
During the period under review, the market also registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (Masi), the measure of market performance, from 33380.63 points registered in April 2021 to 33676.89 points registered in May 2021, giving a month-on-month return on index of 0.89 percent.
The price gains registered by FMBCH plc at 11.80 percent, Nico Holdings plc at 5.93 percent, Airtel Malawi plc at 5.68 percent, NBM plc at 0.003 percent and Standard Bank (Malawi) plc at 0.002 percent were enough to offset share price losses registered by Mpico plc at 23.37 percent, TNM plc at 2.20 percent, FDH Bank plc at 0.36 percent, Icon Properties plc at 0.25 percent and NBS Bank plc at 0.04 percent.
Market capitalisation also increased in both kwacha and dollar terms from K1.81 million ($2 286.62 million) to K1.83 million ($2 295.84 million).
Commenting on the performance, MSE operations manager Kelline Kanyangala said the significant increase in trading activity, among others, can be linked to the release of most of the financial results for listed counters
She said: “With the results it means most investors, especially those who could be privy to some information before publication of results, were now out of the close period which meant they can now trade freely.
“Besides, the release of the results also prompts investors to re-assess the value of a counter in light of the performance registered. This results in activity as investors buy and sell some shares depending on their assessment.”
Further to that, the increase in activity, according to Kanyangala, is also a response to the opening up of the economy following a slowdown due to the Covid-19 pandemic.
On his part, Bridgepath Capital chief executive officer Emmanuel Chokani concurred with Kanyangala saying the results are due to the fact that most companies have released good results.