Malawi Stock Exchange’s subdued week sees 9 counters recording trade

NBM Capital says there trading activity was subdued on the Malawi Stock Exchange (MSE) last week with both turnovers closing on the lower side.

Trades were recorded across several sectors on 9 counters, namely FMB, Mpico, National Bank of Malawi, NBS Bank, National Investment Trust Limited, Press Corporation Limited, Sunbird, TNM and Old Mutual, with price gains recorded on five counters.

In its weekly update, MSE said a total of 12,110,595 shares were transacted at a total consideration of K62,094,593.53 (US$187,345.94) in 29 deals.

The Malawi All Share Index inched upwards by 38.29 points to close the week at 7125.41 points due to an increase in both the Domestic Share Index and the Foreign Share Index by 30.45 points from 5556.17 points to 5586.62 points and by 1.26 points from 1131.18 points to 1132.44 points respectively.

Malawi Stock Exchange

Malawi Stock Exchange

The jump in the indices were as a result of share price gains in NBM by K2.12 from K67.20 to K69.32, NBS Bank by K0.82 from K9.18 to K100, NITL by K0.04 from K17.50 to K17.54, Sunbird by K0.07 from K6.50 to K6.57 and Old Mutual by K1 from K900 to K901.

Alliance Capital said no downward price movements were reported within the week as most companies have released cautionary statements for half year results.

“This is probably one of the reasons the stock market is reporting positive movements. Depressed money market rates are also encouraging some investors, mostly long term investors to venture onto the local bourse,” Alliance Capital said.

In its analysis, NBM Capital said Mpico dominated the volume traded as it accounted for 45 percent of the traded shares while Sunbird was the main value driver which attributed to 47 percent of the realised value owing to its higher price factor.

The Treasury Bills primary market had TBs applications for the week ending 19 April 2013 totalling K3.3 billion against an announced K 2.5 billion which according to Alliance Capital Limited represents a 32 percent rejection rate.

“As expected, the 364 day paper was the most applied for tenor as investors run for cover over anticipated drop in interest rates. Treasury bill yields continue to exhibit a downward trend across all tenors. Given the current and anticipated high liquidity in the banking sector, we envisage continued depressed money market rates,”
Alliance Capital said.

Treasury Bills maturities for the week ending 26th July, 2013 stand at K938 million.

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