The Malawi Stock Exchange (MSE), one of the barometers of economic performance, registered a positive return on index of 0.14 percent in kwacha terms in January, reflected in the rising indicative all share index.
The return on index tracks the capital gains of a group of stocks over a period of time, and this means that shareholders of the companies that propelled the performance in January accrued gains.
Local shares market performance was powered by the price gains in Illovo Sugar (Malawi) Limited, National Bank of Malawi and Standard Bank, according to the MSE monthly performance report.
However, the share price losses in Mpico Limited, NBS Bank and TNM plc was not enough to offset the share gains resulting in the increase in domestic share index, the domestic counters’ gauge, by 6.73 points to 4 732 points from 4 725.51 points.
In the review month, 20.1 million shares were transacted raising K167.7 million ($477 645.62) in 68 trades.
However in December, according to the report, the 14-counter market transacted less shares at 9.9 million, but raked in more K523.2 million ($1.5 million in 65 trades.
“This reflects a 102.02 percent increase in terms of share volume and -67.95 percent [-69.57 percent in dollar terms] decrease in share value. The market registered an average daily volume of 957 924 shares in January 2013 compared to 474 175 shares in December 2012,” says the report.
In the month, the average daily turnover was K7.9 million ($22 745.03) compared to K24.9 million ($74 745.65) in December 2012, reflecting a decrease of -67.95 percent (-69.57 percent in dollar terms).
In the year just gone, the MSE did not beat analysts’ expectations in terms of performance.
The market raised K3.9 billion in 2012 (about $16 million), which was 44 percent down from K7 billion ($53 million) the year before, the market’s annual performance report indicated.
Market analysts said the drop in value is on account of less number of shares transacted as compared to the year before; hence, less revenue.
The MSE transacted 667 million shares, a drop from 1.5 billion shares the year before.
“Daily average share trades exhibited similar trends as the market registered an average daily volume of 2.6 million shares compared to 6.4 million shares traded in 2011, reflecting a 58.4 percent decrease,” says the report.