The Malawi Stock Exchange (MSE) extended its buoyant performance in May as it registered a positive return on index of 10.89 percent.
The local bourse also registered an increase in both total traded value and volume.
In its Monthly Market Performance Report for May 2018 issued on Tuesday, MSE indicates that the market transacted a total of 265,730,032 shares at a total consideration of K10.6 billion [about $14.6 million] in 164 trades.
This is compared to a total of 80,903,126 shares traded in April 2018, at a total consideration of K3.6 billion [about $5 million] in 152 trades.
This represents a 228.45 percent increase in share volume and a 188.65 percent increase share value.
According to the report, of the total shares traded, 13,080,000 Sunbird shares were traded as a special bargain.
The report, however, shows that there were no trades on the three Treasury notes in the month under review.
“The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (Masi) from 27092.17 points registered in April 2018 to 30043.03 points registered in May 2018, giving a return on index of 10.89 percent (10.89 percent in dollar terms),” reads the report in part.
This is attributed to the price gains registered by FMBCH, NBM, NITL, PCL, Standard, Sunbird, TNM and OML.
Commentators say with most listed companies reporting positive strides the capital market may entice investors, thereby increasing demand.
In a recent interview, market analyst Armstrong Kamphoni said the stock market would continue exhibiting a bullish run going ahead with possibility of further improved share prices.
Meanwhile, MSE Chief Executive Officer, John Kamanga, has said adaptation of the automated trading system on the local bourse has enhanced activities and improved trading on the local bourse.
“So far, we have seen lots of transactions going through the market. In a nutshell, I can say that the market has responded positively to the change in terms of volumes, transaction as well as price appreciation,” Kamanga said.
He projected improvement of activities on the market going forward.
Kamanga said the dematerialisation process would also help reduce incidences of fraud of share certificates.
“I would like to assure investors and the general public that the automation is to their benefit. The ownership of shares will be held in a paperless format that is in electronic format. What is important is that shareholders should remember their share identification number,” Kamanga said.
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