Low start for Malawi Stock Exchange in 2018

Post was last updated: February 16, 2018

The Malawi Stock Exchange (MSE) has started 2018 on a rather low note, registering a 70.1 percent decrease in share volume in January compared to December 2017.

During the month under review, the local bourse also registered a 35.62 percent decrease in share value.

MSE Chief Operations Officer, Esnart Chilije, however, said this should not send shock waves as trading activity is usually slow at the beginning of the year.

She said sustained improvements in key indicators should help consolidate gains in the market in 2018.

“We are positive that the stock market will perform well in the year. The good trading statements for the year 2017 are good pointers,” Chilije said.

In its Monthly Market Performance Report for January, MSE says, despite registering a decrease in traded value and volume, the market remained bullish, registering a positive return on investment of 2.90 percent.

The market transacted a total of 36.5 million shares at a total consideration of K 1.3 billion in 108 trades.

In the previous month, the market transacted a total of 122.3 million shares at a total consideration of K2 billion in 81 trades.

Daily average share trades exhibited similar trends, where the market registered an average daily volume of 1.7 million shares compared to 5.8 million shares traded in December 2017.

The average daily turnover for January 2018 was K62.7 million compared to K97.4 million in December 2017, reflecting a decrease of 35.62 percent.

The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index from 21598.07 points registered in December 2017 to 22223.44 points registered in January 2018, giving a return on index of 2.90 percent.

During the period under review, market capitalisation increased in both kwacha and United States Dollar terms from K956,709.04 million ($1,318.41 million) in December 2017 to K984, 410.21 million ($1,356.58 million) in January 2018.

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