Trade Performance Analysis
In the year 2022, the market transacted a total of 1,402,901,021 shares at a total consideration of MK51,719,845,760.25 (US$43,751,349.63) in 4,271 trades. In the corresponding period 2021, the market transacted a total of 1,301,122,424 shares at a total consideration of MK37,690,252,891.52 (US$43,751,349.63) in 3,304 trades. This reflects a 7.82% increase in share volume traded and a 37.22% (23.63% in US Dollar terms) increase in share value traded. Of the shares traded, 1,300,000 FMBCH, 39,231,138 ICON, 5,750,000 ILLOVO, 78,469,009 NBS and 23,828,130 TNM traded as negotiated deals at a total consideration of MK4,923,335,590.00.
Daily average share trades exhibited similar trends where the market registered an average daily volume of 5,589,247 shares compared to 5,183,755 shares traded in the corresponding period 2021 reflecting an increase of 7.82%.
The average daily turnover for the year 2022 was MK206,055,162.39 (US$215,491.45) compared with MK150,160,370.09 (US$174,308.17) for the corresponding period 2021, reflecting an increase of 37.22% (23.63% in US Dollar terms).
Market Capitalization and Index
The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (MASI) from 45,367.68 points registered on 3 January 2022 to 62,036.05 points registered on 31 December 2022, giving a return on index of 36.74%, (8.76% in US$ terms) compared to 40.05%, (33.92% in US$ terms) registered in 2021. The price gains registered by eleven counters, NBM(90.35%), ILLOVO(80.00%), NBS(48.47%), STANDARD(42.87%), AIRTEL(41.60%), FMBCH (38.58%), NITL(31.60%), PCL(14.81%), FDHB(9.87%), NICO(9.09%) and SUNBIRD (2.28%) were enough to offset share price losses by OMU(-53.10%), TNM(-38.92%), ICON(-7.29%), BHL(-0.36%) and MPICO(-0.29%) resulting into an upward movement of the Malawi All Share Index. The Domestic and Foreign Share indices inched upwards by 37.08% and 32.94% to close at 50,804.03 and 5,614.30 points respectively.
Market capitalization increased both in Kwacha and United States Dollar terms from MK2.46 trillion (US$3.02 billion) on 01 January 2022 to MK3.35 trillion (US$3.26 billion) on 31 December 2022.
Market Liquidity
The turnover velocity measured by the ratio of Total Value of Trades to Market Capitalisation (TVT/MCAP*), an indicator of the liquidity of assets traded on the market, in 2022 was recorded at 1.54%, higher than 1.53% registered in 2021. The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.43% in the review period while during the corresponding period of 2021 liquidity was at 0.38%. Market capitalization as a percentage of GDP was at 27.89% in 2022 whilst in 2021 it was at 25.31%.
