Malawi’s gross forex reserves in slight drop

Information from NBM Capital says the country’s gross official foreign exchange reserves slightly dropped to $464 million from $478 million.

The company said gross official import cover was still below the recommended three months as it decreased to 2.47 from 2.54 months.

The country requires $181.1 million per month for import cover or $543.3 million in three months.

On the money market, the average yields across the three Treasury Bill tenors decreased.dollar

The yield for the 91 day tenor decreased by 5.21% from 25.51% to 20.30%, the yield for the 182 day tenor decreased by 4.00% from 25.50% to 21.50%, 364 days T-Bills’ average yield decreased by 2.02% from 26.48% to 24.46%.

K6 billion was raised as expected against an announced amount of K6 billion.

“We foresee the downward trend to certainly continue in the coming weeks,” NBM Capital said.

At the capital market, FDH Stockbrokers noted that National Bank of Malawi shares were the main price gainer from K88.5 to K122.5.

The bank had just released its first half financial results towards the end of July and recorded a bottom line improvement of K6.2 billion an increase from K3.4 billion registered last year.

This performance led to high demand for share on the counter, hence last week’s price jump.

Overall, other 5 counters also recorded price movements and these were Standard Bank, Nico, Press Corporation, NBS Bank and Old Mutual.

“These counters registered considerable price movements as the respective demand for the counters remains high. Nico’s price movement is a result of the promising trading statement that the company issued recently, pending half year financial results.

“The cautionary statement on NBS has as well impacted on Nico’s level of activity, with the subsidiary having a significant contribution to the parent company’s performance. The activity on NBS is also pending half year financial results. PCL has as well reacted to its trading statement and the good perfomance of NBM and TNM are already positive contributions to the conglomerate’s pending half year financial results,” FDH Stockbrokers said.

The broker further noted that Standard Bank’s scarcity is a clear indication that investors are closely monitoring its performance and still very interested to see how its upward trend goes and that TNM, Mpico and Sunbird were the only 3 counters that did not register any movement last week.



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