Five companies sell share at Malawi Stock Exchange

Only five of the 14 companies listed at the Malawi Stock Exchange sold their shares last week.

The market recorded trading activity in National Bank of Malawi, National Investment Trus Limited, Press Corporation, Standard Bank and Sunbird Malawi.

A meagre 300,748 shares were transacted during the week at a total consideration of K5,707,388.50 (US$17,373.79) in 06 deals.

The Malawi All Share Index inched upwards by 5.05 points to close the week at 6413.98 points due to an increase in the Domestic Share Index by 4.03 points from 5016.34 points to 5020.37 points as a result of a share price gain in Standard Bank by K1 from K155 to K156. The Foreign Share Index was steady at 1113.58 points.

At the auction held on 21st May, 2013, the average yield on the 91 days T-Bill, the 182 days T-Bill and the 364 days T-Bill increased by 1.57% from 30.41% to 31.98%, 1.00% from 31.23% to 32.23% and 0.17% from 35.70% to 35.87% respectively, resulting in MK5,005.44 million being raised against an announced amount of MK5,000.00 million. T-bills are open to foreign investors and both the capital and interest are remittal after deduction of withholding tax on interest currently at 15%.

Malawi Stock Exchange
Malawi Stock Exchange

Treasury Bills maturities during the week ended 24th May, 2013 amounted to K3.4 billion.

Maturities for the week ending 31st May, 2013 stand at K2.4 billion

The government said last week that, through the Reserve Bank of Malawi (RBM), it will over K11 billion (about $27.5m) in Treasury Bills within two weeks to finance the rolling debt.

Ministry of Finance spokesperson Nations Msowoya said government is heavily borrowing because it has less discretion on its expenditure.

Msowoya noted that most T-Bills that have been issued are to settle previous debts that were incurred through ways and means a precursor to the T-Bills.

He said there are few options for sources of revenue such as donors and tax and that government is currently struggling to balance revenue and expenditure and the only option is to borrow locally.

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