Trading drops to 1.9m shares on Malawi Stock Exchange

FDH Stockbrokers said the Malawi Stock Exchange (MSE) last week recorded a dreary volume of 1.6 million shares changing hands for a consideration of K19.1 million compared to 16 million shares traded at K169 million for the previous week.

The stock broker said First Merchant Bank, Illovo, Mpico, National Bank of Malawi, NBS Bank, Nico, National Investment Trust Limited (NITL), Sunbird, TNM and Old Mutual are the counters that traded during the week ending August 2 2013.

NITL gained K3.70 per share from K19 to K22.70 at the back of 110,275 shares.

“The release of FMB’s and NBM’s half year results is due to stimulate the market. Potential buyers on NBM are willing to go as high as K75 per share for the counter that has recently become a blue chip on the market,” FDH Stockbrokers said.

Malawi Stock Exchange
Malawi Stock Exchange

The share price movement in NITL had an impact on the Malawi All Share Index which inched upwards by 11.83 points to close the week at 7288.91 points due to an increase in the Domestic Share Index by 9.45 points from 5696.53 points to 5705.97 points. The Foreign Share Index was steady at 1256.86 points.

For the money market, another financial market analysis firm, NBM Capital, said during the July 30, 2013 Treasury Bills auction, no new debt was created as the allotment matched the announced maturity of about K2 billion.

“However, total applications amounted to K7.3 billion which represented 3.6 times subscription. Yields continue to decline and reached their lows as the 364 day – tenor closed at 34% whilst the 182 and 91 day – tenors closed 31.50% and 30.10%. We foresee this trend to continue for now as they heavily affected by the prevailing surplus liquidity in the market,” NBM Capital said.

The company said it noted that for a third week rolling, there were no discount window activities. This was on the back of excess liquidity position in the market, which closed at a surplus of K8.9 billion against a required reserve of K40.9 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 and updates from the Reserve Bank of Malawi says maturities for the week ending August 9, 2013 stand at K793.00 million.

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