Trade Performance Analysis
In the year 2023, the market transacted a total of 612,184,956 shares at a total consideration of MK77,207,908,713.89 (US$66,848,878.62) in 10,736 trades. In the corresponding period 2022, the market transacted a total of 1,402,901,021 shares at a total consideration of MK51,719,845,760.25 (US$54,088,354.47) in 4,271 trades. This reflects a –56.36% decrease in share volume traded but a 49.28% (23.59% in US$ terms) increase in share value traded. Of the shares traded, 14.49 million AIRTEL, 9.38 million FDH, 24.55 million ICON, 12.74 million NBS, 3.80 million NICO, 3.04 million PCL and 13.99 million TNM shares traded as negotiated deals at a total consideration of MK11.35 billion.
Daily average share trades exhibited similar trends where the market registered an average daily volume of 2,468,488 shares compared to 5,589,247 shares traded in the corresponding period 2022 reflecting a decrease of –55.84%.
The average daily turnover for the year 2023 was MK311,322,212.56 (US$269,551.93) compared with MK206,055,162.39 (US$215,491.45) for the corresponding period 2022, reflecting an increase of 51.09% (25.09% in US Dollar terms).
Market Capitalization and Index
The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (MASI) from 62,036.05 points registered on 3 January 2023 to 110,951.21 points registered on 29 December 2023, giving a return on index of 78.85%, (9.05% in US$ terms) compared to 36.74%, (8.76% in US$ terms) registered in 2022. The price gains registered by fifteen counters, FDHB(302.99%), NBS (237.94%), NITL(228.02%), FMBCH(184.14%), NICO(150.67%), ILLOVO(133.34%), SUNBIRD(107.55%), STANDARD(97.48%), OMU(52.28%), ICON(49.37%), NBM (36.26%), TNM(33.57%), BHL(18.51%), PCL(14.93%), AIRTEL(5.93%) were enough to offset a share price loss by MPICO(-27.33%) resulting into an upward movement of the Malawi All Share Index. The Domestic and Foreign Share indices inched upwards by 69.99% and 181.28% to close at 86,359.68 and 15,792.06 points respectively.
Market capitalization increased in Kwacha and marginally in United States Dollar terms as a result of the 44% devaluation of the Malawi Kwacha in November 2023 from MK3.35 trillion (US$3.26 billion) on 03 January 2023 to MK5.99 trillion (US$3.56 billion) on 31 December 2023.
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 2023 was recorded at 1.29%, lower than 1.54% registered in 2022. The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.53% in the review period while during the corresponding period of 2022 liquidity was at 0.35%. Market capitalization as a percentage of GDP was at 41.14% in 2023 whilst in 2022 it was at 22.98%.
