Malawi Stock Exchange (MSE) raised K41.08 billion in 2020, which is 11.4 percent down from K46.3 billion the year before despite an increase in traded volumes, the market’s annual performance report shows.
This is despite the market registering a positive return on index as reflected in the upward movement of the Malawi All Share Index (Masi)— the overall measure of market performance—from 30 252.20 points in January 2020 to 32 392.84 in December 2020.
The 16-counter MSE, according to the report, transacted a total of 1.64 billion shares in 3 114 trades, an 18.03 percent increase from 1.39 billion shares in 3 064 trades in 2019.
Reads the report: “Daily average share trades exhibited similar trends where the market registered an average daily volume of 6.6 million shares compared to 5.6 million shares traded in the corresponding period 2019 reflecting an increase of 18.03 percent.”
The report says average daily turnover for the year was, however, down at K165.66 million compared with K186.97 million for the corresponding period 2019.
In the year, Masi grew by 7.08 percent and 2.21 percent in dollar terms compared to 4.38 percent and 3.41 percent in dollar terms in 2019.
On the other hand, market capatilisation increased in both kwacha and dollar terms from K1.42 trillion in 2019 to K1.75 trillion in 2020.
In a recent interview on the performance of the stock market in 2020, MSE operations manager Kelline Kanyangala said the market performed well, considering the challenges experienced last year.
She said: “We drifted from the prolonged political impasse and then landed on the shores of the global Covid-19 pandemic.
“Despite these challenges there were quite some positive developments in the year, the highlight being the listing of two companies on the bourse.”
On his part, Stockbrokers Malawi Limited chief executive officer Noel Kadzakumanja said the market performance was generally better in 2020 despite the Covid-19 pandemic.
“Tough lower value was traded and it was enough to push the share prices much higher than did the high traded value in 2019,” he said.
The year 2020 kicked off with the listing of Airtel Malawi plc and later on FDH Bank plc, which saw the companies raising K28 billion and K14 billion, respectively.
In 2020, Airtel Malawi plc, NBS Bank plc, FDH Bank plc, Standard Bank plc and National Bank of Malawi plc were top gainers, registering a 120.49 percent, 60 percent 44 percent, 43.34 percent and 23.81 percent capital gains in that order.
On the other hand, FMBCH, Illovo Sugar (Malawi) plc, Sunbird Tourism plc, TNM plc and Old Mutual Malawi plc were top losers with a 70.61 percent, 47.40 percent, 11.02 percent, 22.81 percent and 12 percent capital losses in that order.
The report shows that five counters, namely TNM plc, NBS Bank plc, FDH Bank plc, FMBCH and Icon Properties were top five traded stocks by volume in 2020.
In terms of value, TNM plc, Press Corporation plc, NBS Bank plc, FMBCH, FDH Bank plc were the top five traded stocks.