The secondary stock market on the country’s bourse, Malawi Stock Exchange (MSE) registered an increase in volume but saw a decline in value of shares traded during the month of October, Reserve Bank of Malawi data shows.
MSE traded a total of 185.5 million shares in October earning K2.5 billion compared to 154.7 million shares which earned K3.7 billion in in September this year.
“The decline of 32.7 in value emanated from trades on low-value counters which dominated trading following positive half-year results released by listed companies,” reads the central bank’s October Monthly Economic Report.
Last year in October, a total of 46.5 million shares exchanged hands at a total consideration of K5.8 billion.
In the month under review, the Malawi All Share Index (Masi) gained 798.2 points and closed off the month at 30 344.5 points, translating into a positive month-on-month return on index of 2.7 percent.
The increase in Masi resulted from an increase in the Domestic Share Index (DSI) which closed higher at 23 445.6 points in October 2019 than 22 735.5 points recorded in September 2019.
“Share price gains on Icon Properties plc, National Bank of Malawi plc and NBS Bank plc counters explained the increase in DSI. On the other hand, the Foreign Share Index (FSI) remained static at 4 272.6 points,” reads the report.
Total market capitalization closed high at K1 433.2 billion in October 2019 from K1 394.4 billion recorded in the previous month.
The increase in the market capitalization, according to MSE, was on account of the share price gains on Icon Properties plc, National Bank of Malawi plc and NBS Bank plc counters.
The increase in shares on Old Mutual plc counter also explained the rise in the market capitalization.
Domestic market capitalisation closed high at K1 205.0 billion from K1 168.0 billion in September 2019 due to gains on the domestic counters while foreign market capitalisation closed high at K228.2 billion from K226.4 on account of the additional shares on the Old Mutual Limited counter.
In dollar terms, total market capitalisation increased to $1.94 billion from $1.89 billion in the previous month owing to the combined effects of share price gains and the additional shares on Old Mutual counter. In the corresponding period of 2018, the total market capitalisation stood at $1.8 billion.
There was no listing on the market in October, but it will close this week on high after Airtel Malawi announced plans to list on the bourse.