The 14-counter Malawi Stock Exchange (MSE) registered a positive return on index in October as reflected in the upward movement of the Malawi All Share Index (Masi) buoyed by price gains in three counters.
The latest MSE Market Report for October 2019 indicates that the shares market was bullish as Masi moved from 29 546.27 points in September to 30 344.49 points in October on account of price gains in National Bank of Malawi plc, Icon Properties plc and NBS Bank plc.
NBM recorded a 17.66 percent jump in its share price whereas, Icon and NBS Bank plc share prices gained by five and four percent, respectively.
These movements impacted the domestic share index, the gauge of domestic counter’s performance, which increased to 23 445.64 points from 22 735.48 while the foreign share index (FSI) anchored by FMB Capital Holdings plc remained flat at 4 272.58 points.
“The market also registered an increase in total volume of shares despite registering a decrease in total value traded,” reads the report.
In terms of trade performance, the MSE report shows that in the review period, a total of 185.4 million shares changed hands raising K2.4 billion [$3.4 million] in 243 trades.
In contrast to the prior month, the market transacted a total of 154.6 million shares at a total of K3.7 billion ($5 million) in 246 trades, reflecting a 19.8 percent increase in terms of share volume and a 32.6 percent decrease in value traded.
“Daily average share trades exhibited similar trends where the market registered an average daily volume of 8.8 million shares compared to 7.3 millionshares traded in September 2019,” reads the report.
The average daily turnover for October, according to the report, was K118.8 million ($162 114.76) compared to K176.5 million ($240 807.95) in September 2019, a decrease of 32.68 percent (32.68 percent in dollar terms).
In recent months, most counters on the MSE have lost share value, a development analysts have linked to the falling bank interest rates.
A Blantyre-based market analyst, in an earlier interview, said the decline in interest rates has impacted the local shares market as it opened investment alternatives. He said with the lower interest rates, investors are opting for other investment avenues other the stock market.