The recent six months results by Illovo which recorded an operating profit of K5.7 billion has led to the company’s shares gaining K10 each on the stock market.
Illovo said its revenues have grown and reflect the company’s ability to take advantage of premium prices currently on offer within its regional markets.
However, it said the current adverse macro-economic environment within the country has depressed sales in the local market, which are down 20%.
A weekly report from Malawi Stock Exchange says Illovo’s share increased from K110 to sell at K120 each last week.
This resulted in the increase of the Domestic Share Index by 135.55 points to 4110.39 points and eventually the Malawi All Share Index moved by 169.78 points to 5209.09 points.
K116.7 million ($711,370.21) was generated from selling of a total 1.2 million shares in 26 deals from 8 other counters of TNM Limited, Mpico, Standard Bank, PCL, Nitl, National Bank, Nico and NBS Bank.
In a related development the last week approved the rights offer of NBS Bank’s 103.9 million shares which opened on the bourse today.
NBS Bank earlier announced that it intended to pursue a Rights Issue in the ratio of one share for every six shares.
The bank planned to raise about K997.9 million through the rights issues to re-capitalise the financial institution.