Reserve Bank of Malawi cancels Treasury Bills auction

The money market experienced an unusual occurrence this week as the Reserve Bank of Malawi (RBM) cancelled auction on treasury bills.

This happened at the auction held on June 4 in what the central bank described as a result of overpricing of most bids submitted during the auction.

The development is in sharp contrast with what occurred last week where government borrowing through the central Bank averaged K 3.9 billion per day from K4.4 billion per day.

Results of the Treasury Bill Auction held on 28 May 2013 show K5 billion was raised against applications amounting to K 5.2 billion.

Charles Chuka: RBM governor
Charles Chuka: RBM governor

On the stock market, there was trading activity recorded in 7 counters of First Merchant Bank, Illovo, Mpico, National bank of Malawi, NBS Bank, Press Corporation Limited and Standard Bank.

A total of 794,831 shares were transacted during the week at a total consideration of K18,327,169.20 (US$55,789.52) in 24 deals.

The Malawi All Share Index inched upwards by 136.31 points to close the week at 6688.84 points due to an increase in the Domestic Share Index by 108.82 points from 5130.97 points to 5239.79 points.

This was a result of share price gains in FMB by 50 tambala to K8.50, Illovo by K4 from K175.50 to K179.50, NBS from K7.12 to K8 and Standard Bank by K5.12 from K156.00 to K161.12.

The Foreign Share Index was steady at 1113.58 points.

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