Stock market bearish in 2016

Post was last updated: January 12, 2017

The Malawi Stock Exchange (MSE) did not only experience drought of new entrants in 2016 but also had a bearish performance, registering a negative return on investment of 8.53 percent.

This is compared to a negative return of 2.17 percent the local bourse recorded in 2015.

In the year under review, MSE also recorded a decrease in both total traded value and volume compared to the corresponding period in 2015.

According to MSE 2016 Annual Market Performance Review issued on Tuesday, the market transacted a total of 410,895,390 shares at a total consideration of K6.1 billion in 913 trades.

In the corresponding period 2015, the market transacted a total of 2,355,317,369 shares at a total consideration of K48.5 billion in 1,220 trades.

This reflects a –82.55 and a –87.25 percent decrease in terms of share volume and share value respectively.

In the year, daily average share trades exhibited similar trends where the market registered an average daily volume of 1,656,836 shares compared to 9,497,247 shares traded in the corresponding period in 2015.

“The average daily turnover for the year 2016 was K24,984,09.02 compared with K195,935,832.82 for the corresponding period 2015, reflecting a decrease of 87.25 percent,” the report indicated.

The report also indicates that Market capitalization decreased both in kwacha and dollar terms.

Apart from not registering new entrants in 2016, the stock market saw the delisting of Britam Insurance Company Limited in April.

Meanwhile, the MSE is reported to have started the year 2017 on a positive note, transacting 935,070 shares within the first week, raising K10.5 million in 19 deals.

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