The committee of Southern African Development Community (Sadc) stock exchanges (CoSSE) has said it has made good progress on the road to implement centralised trading of stock markets in the region.
The progress was noted during a 59th bi-annual meeting Sadc stock exchanges held under CoSSE secretariat.
According to a statement issued Thursday, progress has been made in implementing several technical requisites to enable centralised trading of government bonds at the exchanges.
Speaking in an interview, Malawi Stock Exchange (MSE) Operations Manager Kelline Kanyangala said the local bourse was already reviewing trading requirements and equipping stock brokers with necessary expertise.
Kanyangala added that there was less liquidity on the debt market and that linking the markets would improve liquidity and widen the investment portfolio for local investors to invest abroad and for international investors to invest in the stock market.
“We have taken South Africa as a benchmark and we have made good progress because we are already reviewing listing requirements and the capacity for our brokers is now available. Therefore we are close to reaching the requirements of the benchmark,” she said.
CoSSE is a grouping of 14 stock exchanges within the Sadc region with different listing and investing requirements, which makes it difficult for others to invest in them, apart from the country’s citizens.
If a Malawian investor is interested in investing in Johannesburg Stock Exchange, for example, the person is supposed to go through the Reserve Bank of Malawi then find a local broker who should link with another broker in South Africa.
An official from Alliance Stock Brokers Thokozani Saulosi said the harmonisation was a good idea because it would widen stock markets such as MSE, who are small as compared to other stock exchanges.
“We have plans to invest in many African stock exchanges; so, if this will happen, it will give us a chance to easily invest because, apart from harmonised requirements, information of listed companies and how the markets are behaving will be at our fingertips,” he said.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.