The Bankers Association of Malawi (Bam) has applauded the government, the Reserve Bank of Malawi (RBM) and the Malawi Stock Exchange for facilitating the listing of the Malawi Government Treasury Note.
Bam says market players will benefit from the liquidity that comes with listing securities.
“It will now be easier and quicker for players on the secondary market to buy and sell the Treasury Note, when need arises. Additionally, since transactions in listed securities are conducted in an open and transparent manner, subject to a well-defined code of conduct, buyers and sellers are assured of fair dealings,” a statement from Bam says.
Further, the association says the listed note will also be a benchmark for pricing of other securities.
“Our expectation is that RBM will initiate the listing of more government papers on the stock exchange as a precursor to the listing of corporate papers. Diversification is very important for the development of the capital market.
“We also hope that market players, our members inclusive, will actively trade in this Treasury Note so as to provide the liquidity that will motivate other issuers to come in,” the statement reads.
Bam says it is looking forward to seeing the government continuing to support market players who support trade on the stock market.
Today’s top business story: Top Commercial Banks In Malawi
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