The Malawi Stock Exchange (MSE) registered a positive return on index in February as indicated in the upward movement in the overall market barometer largely driven by gains in the Nico Holdings Limited, Nitl and Press Corporation Limited (PCL).
This is despite the market generally being flat in the first two months of this year which analysts have said are usually characterised with thin trading activity in which no price movement is expected.
“It become sdifficult for a market to register price movement when both potential buyers and seller have taken wait and see positions,” said a market analyst.
The MSE monthly report shows that the 14-counter bourse registered a positive monthly return on index of 0.12 percent (3.21 percent in dollar terms) to close the month of February at 12 661.60 points compared to 12 646.78 points in January 2014.
The bourse also recorded an increase in both traded value and volume for the same period.
In terms of trade performance, 23.3 million shares were transacted in February raising K589.7 million ($1.3 million) in 120 trades.
Comparatively, during the same period last year, the market transacted 4.9 million shares raising K19 million ($113 376.39).
“In the previous month, January 2014, the market transacted a total of 7.2 million shares at a total consideration of K140.4 million ($323 615.98) in 110 trades. This reflects a 223.61 percent increase in terms of share volume and 320.01 percent increase [329.33 percent dollar terms) in share value,” said the report.
The market registered an average daily volume of 1.1 million shares in February 2014 compared to 354 490 shares in January 2014 and the average daily turnover for February was K28 million ($66 161.18) compared to K6.6 million ($15 410.28) for the previous month, reflecting an increase of 320.01 percent [329.33 percent in dollar terms].
The positive turn on the index is reflected in the upward movement of the Malawi All Share Index (Masi) to 12 661.60 points on February 28 from 12 646.78 points as at January 31.
The anchor of the foreign share index, Old Mutual plc, did not register any share price gain; hence index remaining steady.
Last week, the market’s overall index inched upwards due to share price gains in Nico Holdings Limited by one tambala to K18.41 and Sunbird which gained 10 tambala to close the week at K7.10 per share.
Standard Bank last week released earnings results which saw its profit rising 52 percent to K12 billion from the previous year’s K7.9 billion.
It remains to be seen if investors will to the earnings results this week.