10 counters register trading at Malawi Stock Exchange

The Malawi Stock Exchange (MSE) said last week it recorded trading activity in 10 counters of First Merchant Bank, Mpico, National Bank of Malawi, NBS Bank, Nico, National Investment Trust Limited (Nitl), Press Corporation Limited, Standard Bank, TNM and Old Mutual.

“A total of 8,758,538 shares were transacted during the week at a total consideration of K50,801,913.25 (US$151,876.86) in 25 deals. The Malawi All Share Index inched upwards by 353.40 points to close the week at 7836.83 points due to an increase in both the Domestic Share Index and the Foreign Share Index by 278.62 points from 5861.26 points to 6139.88 points and by 38.96 points from 1256.86 points to 1295.83 points respectively,” said MSE.

The market said the indices movement were due to share price gains recorded in FMB by K1.97 from K8.54 to sell at K10.51, National Bank by K18.50 from K70 to K88.50, Standard Bank by K7 from K172.00 to K179.00 and Old Mutual by K31.00 from K1,000 to K1,031.

On the money market, the Treasury Bill (TBs) auction of August 13, 2013 attracted a record K19.2 billion at cost against K4 billion announced for, resulting in a 4.8 times subscription rate.

Malawi Stock Exchange
Malawi Stock Exchange

NBM Capital said the 364 days paper was dominant, attracting about 60 percent of the total applications, as investors try to lock up their funds in longer tenors amid falling inflation and interest rates.

The market analysis firm noted that in turn, RBM only allotted K4 billion, implying a 79 percent rejection rate. As was expected, the yields declined across the board amid excess liquidity in the financial system.

Treasury Bills maturities during the week ended August 16, 2013 amounted to K3.1 billion while maturities for the week ending August 23, 2013 stand at K3.7 billion

Malawi’s TBs are open to foreign investors and both the capital and interest are remittal after deduction of withholding tax on interest currently at 15 percent.

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