The Reserve Bank of Malawi (RBM) has touted Malawi Stock Exchange’s (MSE) infrastructure and operations, saying it makes the local bourse a world-class stock market.
RBM market analysis and development manager Franklyn Khoza said this on Thursday during an MSE virtual media roundtable sponsored by Old Mutual Investment Group.
He said: “How the market performs depends on several factors, including economic growth and interest rates expectations of economic agents, especially investors.”
Khoza said over the years, the local bourse has witnessed more securities being offered, with government making available more debt instruments with longer maturities while the corporate sector has been warming up to access the market.
He said RBM wants to see more participation in the market by ordinary Malawians, including retail investors, regardless of their income level.
In his presentation, MSE chief executive officer John Kamanga said the local bourse plans to extend automated trading system through mobile app, which he said would help in financial inclusion.
He, however, said the Covid-19 pandemic will have an impact on the local bourse although with the global economic recession, the capital market is becoming relevant in terms of recovery trajectory.
On her part, MSE operations manager Kelline Kanyangala said the pandemic has diluted capital- raising initiatives for some firms although the recent FDH Bank plc initial public offer, which happened during the pandemic “offers some optimism and appetite for more securities to be listed”.
Media Institute of Southern Africa Malawi Chapter chairperson Teleza Ndanga said there is need for players to demystify the stock market concept.
In the last 20 months, there has been a lot of activities on MSE following the listing of Icon Properties plc, Airtel Malawi plc and FDH Bank plc following a decade of inactivity.