MSE resilient in February despite volume decrease

There were mixed fortunes at the stock market in February as the local bourse registers positive return on index despite a decrease of volume of shares.

The Malawi Stock Exchange (MSE’s) monthly report shows a 3.8% month-on-month return on index –with an increase in traded value despite a decrease in volume of shares.

A total of 28.5million shares at a total consideration of 2.8billion kwacha were transacted compared to 62.9million shares at 2.3bilion kwacha in January

“This reflects a –54.71 % decrease in terms of share volume traded but a 21.33% (21.33% in US Dollar terms) increase in share value traded.

“Of the shares traded 509,420 PCL shares traded as a negotiated deal at a total consideration of MK1.1 billion. Daily average share trades exhibited similar trends where the market registered an average daily volume of 1,425,125 shares compared to 3,146,434 shares traded in January 2023, reflecting a decrease of –54.71percent,” reads the report in part.

This comes at a time the latest financial stability report is showing a positive capital market –with increasing Malawi All Share Index since 2022 last half.

It said Malawi’s capital market was favourable during the six-month period to December 2022, as seen by the increase in the Malawi All Share Index where also its returns exceed money market returns.

Meanwhile, MSE officials expect the strong performance to continue in short term though the long-term forecast is too early for the meantime.

According to Kelline Kondowe, Chief Operations Officer for Malawi Stock Exchange, “in terms of performance of the market, it is determined by the individual companies’ performance within their sectors and I think its two early for now to forecast until later when half year results are released by some listed companies.”