Malawi Stock Exchange maintains bullish run in second Quarter

Post was last updated: July 8, 2019

By William Kumwembe:

Amid volatility of the Malawi economy in the recent past, Malawi Stock Exchange (MSE) continued with its bullish performance in the second quarter of 2019, registering a positive return on index of 9.71 percent.

The market also registered an increase in total traded value despite a decrease in total volume of shares traded.

Figures contained in the MSE 2019 second Quarter Market Performance report released last week show that the local bourse transacted a total of 206,786,591 shares at a total consideration of K15,135,991,829.52 ($20,404,866.73) in 921 trades.

In the corresponding period 2018, the market transacted a total of 353,101,240 shares at a total consideration of K14,503,419,000.79 ($19,987,016.88) in 402 trades.

“The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (Masi) from 27303.65 points registered on 1 April 2019 to 29956.00 points registered on 28th June 2019, giving a return on index of 9.71 percent (4.05 percent in dollar terms) compared to 21.55 percent (21.55 percent dollar terms) registered in Q2 of 2018,” reads part of the report.

Market capitalisation increased in both kwacha and United States dollar terms from K1,275,935.00 million ($1,745.00 million) in April 2019 to K1,412,128.98 million ($1,831.60 million) in June 2019.

Speaking recently, Alliance Stockbrokers Limited Operations Manager, Thoko Saulosi, said the outlook remained positive for the stock market in the second half.

“We expect that, in the second half, despite the uncertainty that has engulfed the economy due to the political environment, the stock market will still remain bullish and more active than in the first half.

“The efforts by the Reserve Bank in forcing companies to remit pension has and will also continue to boost the stock market in addition to the low interest rate which has made the stock market the alternative profitable investment avenue,” Saulosi said.

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