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Mixed fortunes for stock market in Q3

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The Malawi Stock Exchange (MSE) was bullish in the third quarter (Q3), with nine counters registering share price gains, sending the overall market measure up by an average 18.23 percent, a market report shows.

This performance is despite the market registering a decrease in both volume and value of traded shares.

Malawi Stock Exchange

The MSE Market Performance Report for Third Quarter published yesterday shows that the Malawi All Share Index (Masi)—the overall measure of local shares market performance—inched upwards from 35 144.56 points registered in July to 41 550.15 points in September.

Reads the report in part: “The price gains registered on Illovo Sugar [Malawi)]plc at 153.06 percent, TNM plc at 45.13 percent, Mpico at 31.25 percent, Press Corporation Limited at 24.59 percent, Airtel Malawi plc at 22.93 percent, FMBCH at 7.81 percent, Standard Bank plc at 4.15 percent, National Bank of Malawi plc at 3.99 percent and Sunbird Tourism plc at 0.01 percent were enough to offset share price losses in five counters, resulting in an upward movement of the Masi.”

The report shows that National Investment Trust Limited, NBS Bank plc, Old Mutual Malawi plc, FDH Bank plc and Icon registered share price losses of 14.99 percent, 5.04 percent,4.11 percent, 0.81percent and 0.16 percent in that order.

During the review period, the market transacted 189 million shares, raising K8.3 billion in 975 trades, which is lower than 551 million shares transacted during the corresponding period last year, raising K12. 38 billion in 923 trades.

This reflects a 65.63 percent decrease in volume and a 32.98 percent decrease in share value.

“Daily average share trades exhibited similar trends where the market registered an average daily volume of 2.95 million shares compared to 8.47 million shares traded in the corresponding third quarter of 2020, reflecting a decrease of –65.09 percent,” reads the report.

It further shows that the average daily turnover for the third quarter of 2021 was K129.7 million compared to K190.54 million during the corresponding period in 2020, reflecting a decrease of –31.93 percent.

During the review period, market capitalisation increased in kwacha terms from K1.91 million in July 2021 to K2.25 million in September 2021.

In an interview yesterday, Stockbrokers Malawi Limited chief executive officer Noel Kadzakumanja said MSE performance during the period reflects the current mixed business conditions as some companies are impacted by the Covid-19 pandemic.

He said the improved performance in some counters, which indicated that they would post profits, has a bearing on market activity.

MSE operations manager Kelline Kanyangala is upbeat that going forward, activity will pick up as half-year results are published.

“We are, however, quite aware that Covid-19 poses a downside risk as we have noted that once cases spike, it results in the slowdown of trading activities,” she said.

MSE has 16 listed counters.