Illovo Malawi share price increasing due to billions of kwacha profit
Illovo share price increased by K5.50 from K179.50 to K185 at the Malawi Stock Exchange (MSE) this week due to what stockbrokers say is high demand of the company’s shares by investors after the K9 billion profit it posted.
Illovo Malawi revenue went up to K30.9 billion (about $103 million), representing a 71 percent climb from K18.1 billion (about $60.3 million) while profits went up 143 percent to K9 billion (about $30 million).
The Malawi company which enjoys market monopoly as the only local sugar producer and seller has contributed 43 percent to Illovo Sugar Group operating profit in the six months ended September 30 2012.
The MSE recorded trading activity in a total of 9 counters of First Merchant Bank, Mpico, National Bank of Malawi, Real Insurance, NBS Bank, TNM, Old Mutual and Standard Bank.
A total of 33,391,842 shares were transacted during the week at a total consideration of K52,815,320.00 ($160,774.49) in 29 deals.
The Malawi All Share Index inched upwards by 118.41 points to close the week at 6807.25 points due to an increase in both the Domestic Share Index and the Foreign Share Index by 92.94 points from 5239.79 points to 5332.74 points and by 17.60 points from 1113.58 points to 1131.18 points respectively.
This was a result of share price gains in Illovo, Standard Bank by K4.88 from K161.12 to K166 and Old Mutual by K14 from K886 to K900.
These gains were enough to offset share price loss in Real Insurance by 20 tambala from K1.20 to K1.
On the Treasury Bills primary market, at the auction held on 11th June, 2012, the average yield on the 91 days T-Bills, the 182 days T-bills and the 364 days T-Bills were at 32.97 percent, 34.54 percent and 36.94 percent respectively.
This resulted in K2.902 billion being raised against an announced amount of K2.900 billion.
Malawi’s Treasury Bills are open to foreign investors and both the capital and interest are remittal after deduction of withholding tax on interest currently at 15 percent.
Treasury Bills maturities during the week ended 14th June, 2013 amounted to K1.650 billion. Maturities for the week ending 21st June, 2013 stand at K3.235 billion.
Follow and Subscribe Nyasa TV :
