Trade Performance Analysis

The market transacted a total of 46,207,730 shares at a total consideration of MK3,630,199,189.34 (US$4,308,278.87) in 330 trades in the month of May 2022. In the previous month of April 2022, the market transacted a total of 56,715,631 shares at a total consideration of MK7,254,524,688.88 (US$8,883,388.30) in 312 trades. This reflects an 18.53% decrease in terms of share volume traded and a 49.96% (51.50% in US Dollar terms) decrease in share value traded. Of the total shares traded
10,000,000 ICON shares at a total consideration of MK100,000,000.00, traded as a negotiated deal.

Daily average share trades exhibited similar trends where the market registered an average daily volume of 2,567,096 shares compared to 2,985,033 shares traded in April 2022, reflecting a decrease of 14.00%.


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 46934.16 points registered in April 2022 to 50300.44 points registered in May 2022, giving a month-on-month return
on index of 7.17% (-14.33% in US$ terms). The price gains registered by FMBCH (28.83%), AIRTEL (15.42%), STANDARD (14.28%), NBM (5.44%), PCL(0.05%), NITL (0.009%) and ILLOVO (0.007%) were enough to offset share price losses registered by NICO (15.00%), TNM (12.50%), SUNBIRD (11.13%), FDHB (5.17%), and NBS (0.04%) resulting into an upward movement of the Malawi All Share Index. The Domestic Share and the Foreign Share Indices inched upwards by 4.70% to 39037.30 points and by 27.72% to 7305.55 points respectively.

Market capitalization increased in Malawi Kwacha terms from MK2.55 trillion to MK2.73 trillion but fell in US$ terms from US$3,119.10 million to US$2,673.56 million as a result of the 25% devaluation of the Malawi Kwacha.


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 May 2022 was recorded at 0.13%, lower than 0.28% registered in April 2022. The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.04% in May 2022 while during the previous month, April 2022, liquidity was at 0.07%.

Market capitalization as a percentage of GDP was at 27.70% in May 2022 and 25.83%
in April 2022.