Trade Performance Analysis

The market transacted a total of 132,789,838 shares at a total consideration of MK5,451,082,198.85 (US$5,310,695.04) in 396 trades in the month of August 2022. In the previous month of July 2022, the market transacted a total of 270,135,789 shares at a total consideration of MK4,699,257,991.85 (US$4,578,233.31) in 360 trades. This reflects a –50.84% decrease in terms of share volume traded and a 16.00% (16.00% in US Dollar terms) increase in share value traded. Of the shares traded 5,750,000 Illovo and 9,417,237 NBS shares traded as negotiated deals at a total consideration of MK2,488,344,740.00.

Daily average share trades exhibited similar trends where the market registered an average daily volume of 5,773,471 shares compared to 13,506,789 shares traded in July 2022, reflecting a decrease of –57.26%.

The average daily turnover for August 2022 was MK237,003,573.86 (US$230,899.78) compared to MK234,962,899.59 (US$228,911.67) in July 2022, reflecting an increase of 0.87% (0.87% 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 52889.87 points registered in July 2022 to 54454.45 points registered in August 2022, giving a month-on-month return on index of 2.96% (2.96% in US$ terms). The price gains registered by ILLOVO (25.00%), NBM(1.86%), NITL(1.77%), TNM(1.26%), AIRTEL(0.20%) and STANDARD (0.001%) were enough to offset share price losses registered by ICON(0.17%), NBS (0.09%) and MPICO(0.05%) resulting into an upward movement of the Malawi All Share Index. The Domestic Share Index inched upwards by 3.26% to 44109.31 points whilst the Foreign Share Index was steady at 5548.61 points.

Market capitalization increased in both Malawi Kwacha and US Dollar terms from MK2.86 trillion (US$2.79 billion) to MK2.94 trillion (US$2.87 billion).


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 August 2022 was recorded at 0.18%, higher than 0.16% registered in July 2022. The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.05% in August 2022 while during the previous month, July 2022, liquidity was at 0.04%.

Market capitalization as a percentage of GDP was at 24.56% in August 2022 and 23.86% in July 2022.