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MSE share volume, value drops in Jan

The Malawi Stock Exchange (MSE) has in the month of January recorded a decline in both volume and value of shares traded due to relatively low valued shares which exchanged hands during the period.

According to a published January 2018 monthly economic review, a total of 36.5 million shares earning K1 318.0 million were traded compared with 122.3 million shares which earned K2 047.3 million during the previous month, representing a 70.2 percent and 35.6 percent decline, respectively.

“The decline in turnover was due to relatively low valued shares which exchanged hands during the period compared to more but low valued shares which exchanged hands in the previous review period,” the report reads in part.

During the period under review, Nico Holdings plc counter (trading at K34.0 per share) accounted for 62.7 percent of shares traded while in the previous period, Telekom Networks Malawi (TNM) plc counter (trading at K16.2 per share) accounted for 90.7 percent of shares traded.

In the corresponding month of the previous year, 9.5 million shares changed hands at a total consideration of K299.5 million.

On the other hand, the Malawi All Share Index (Masi) gained 625.4 points and closed off at 22 223.4 points from 21 598.1 points recorded in December 2017, resulting in a monthly return on index of 2.9 percent.

Total market capitalisation closed slightly higher at K10 661.8 billion compared with K10 609.5 billion recorded in the previous month while domestic market capitalisation closed higher at K811.6 billion from K791.1 billion in the previous month.

In an earlier interview, MSE operations manager Esnat Chilije was upbeat that the market will continue to register positive results should the macroeconomic environment continue to stablise.

“Inflation and interest rates have declined while the exchange rate has been largely stable creating conducive environment for business operation and also attracting investors to the capital market.

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