Trade Performance Analysis
The market transacted a total of 37,473,913 shares at a total consideration of MK5,619,236,664.99 (US$5,334,190.34) in 947 trades in the month of July 2023. In the previous month of June 2023, the market transacted a total of 93,415,908 shares at a total consideration of MK12,124,527,728.72 (US$11,643,343.27) in 1,409 trades. This reflects a –59.88% decrease in terms of share volume traded and a –53.65% (-54.19% in US Dollar terms) decrease in share value traded. Of the shares traded 3.98 million TNM shares traded as a negotiated deal at a total consideration of MK103.64 million.
Daily average share trades exhibited similar trends where the market registered an average daily volume of 1,784,472 shares compared to 4,246,178 shares traded in June 2023, reflecting a decrease of –57.97%.
The average daily turnover for July 2023 was MK267,582,698.33 (US$254,009.06) compared to MK551,114,896.76 (US$529,242.88) in June 2023, reflecting a decrease of –51.45% (-52.01% in US Dollar terms).
Market Capitalization and Index
The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (MASI) from 108,656.97 points registered in June 2023 to 112,497.02 points registered in July 2023, giving a month-on-month return on index of 3.53% (3.53% in US$ terms). The price gains registered by FMBCH (22.26%), PCL(14.98%), NITL(14.57%), SUNBIRD(5.26%), FDHB(3.53%), STANDARD (2.17%), NBM(0.16%), NBS(0.08%), TNM(0.07%) and AIRTEL(0.01%) were enough to offset share price losses registered by ICON(-0.11%), MPICO(-0.10%) and NICO (-0.02%) resulting into an upward movement of the Malawi All Share Index. The Domestic and the Foreign Share Indices inched upwards by 1.49% to 88,368.95 points and by 22.04% to 14,982.64 points respectively.
Equity market capitalization increased in both Malawi Kwacha and US Dollar terms from MK5.86 trillion (US$5.56 billion) to MK6.07 trillion (US$5.76 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 July 2023 was recorded at 0.09%, lower than 0.21% registered in June 2023. The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.04% in July 2023 while during the previous month, June 2023, liquidity was at 0.08%.
Market capitalization as a percentage of GDP was at 41.41% in July 2023 and 39.97% in June 2023.
