Malawi Stock Exchange (MSE) recorded a decline in both total traded value and volume in 2016 compared to the corresponding period in the prior year, according to an annual report.
The shares market registered an 8.53 percent negative return on investment in the year under review from 2.17 percent in 2015.
The negative return on index is reflected in the downward movement of the overall market barometer, the Malawi All Share Index (Masi), which dropped from 14 562.53 points in the first week of 2016 to 13320.51 points at the close of the year, according to the report.
The local shares market in its 2016 annual report, says the market transacted 410.8 million shares at K6.19 billion in 913 trades whereas in the corresponding period, it traded 2.3 million shares at K48.5 billion in 1 220 trades.
Reads the report in part: “Daily average share trades exhibited similar trends where the market registered an average daily volume of 1 656 836 shares compared to 9 496 247 shares traded last year.
“Average daily turnover for the year 2016 at K24.9 million also declined compared to 2015 at K185 million reflecting an 87.2 percent decrease.”
The report shows that Sunbird Tourism Limited, Blantyre Hotels Limited, FMB, Press Corporation Limited, Old Mutual Limited and TNM registered price gains.
The gain in the stocks was not enough to offset share price losses registered on NBS Bank, Nico Holdings Limited, National Investment Trust Limited, National Bank of Malawi and Mpico Limited, resulting in a downward movement of the Masi due to an 8.7 percent decrease in the domestic share index.
MSE had 14 counters until Britam Insurance delisted last year, bringing the total number of counters on the MSE to 13.
In an earlier interview, MSE operations manager Esnat Lweya was upbeat that the local bourse is set for strong performance on the back of stabilising macroeconomic environment this year.
She said: “We have seen some positive developments in macroeconomic indicators notably the interest rates cut and the slow-down in inflation rates.
“We are hopeful that these results will filter in 2017.”
In developed countries, a stock market gives indicators in terms of economic direction, but in Malawi the market is responsive. n