MSE | Malawi Stock Exchange - Q2 2023 Market Performance Report

    Trade Performance Analysis

    The market transacted a total of 232,382,498 shares at a total consideration of MK24,959,665,828.11 (US$24,147,924.03) in 3,396 trades. In the corresponding period 2022, the market transacted a total of 166,088,409 shares at a total consideration of MK11,979,481,753.40 (US$14,263,108.43) in 929 trades. This reflects a 39.91% increase in terms of share volume and a 108.35% (69.30% in US Dollar terms) increase in share value. Of the shares traded, 8.8 million AIRTEL and 2.8 million NICO shares traded as negotiated deals at a total consideration of MK1.30 billion.

    Daily average share trades exhibited similar trends where the market registered an average daily volume of 3,809,549 shares compared to 2,722,761 shares traded in the corresponding second quarter of 2022 reflecting an increase of 39.91%.

    The average daily turnover for the second quarter 2023 was MK409,174,849.64 (US$395,867.61) compared with MK196,384,946.78 (US$233,821.45) for the corresponding second quarter 2022, reflecting an increase of 108.35% (69.30% 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 80,298.12 points registered on 3 April 2023 to 108,656.97 points registered on 30th June 2023, giving a return on index of 35.32%, (31.85% in US$ terms) compared to 8.00%, (-14.10% in US$ terms) registered in Q2 of 2022. The price gains registered by NBS(109.73%), TNM(93.35%), NITL(74.99%), FDHB (64.06%), ICON(59.71%), SUNBIRD(50.43%), ILLOVO(49.52%), FMBCH(46.96%), AIRTEL(33.40%), NICO(19.88%), NBM(15.88%), OMU(9.09%) and STANDARD(6.79%) were enough to offset share price losses registered by BHL(-8.21%) and PCL(-0.002%) resulting into an upward movement of the Malawi All Share Index. The Domestic Share and the Foreign Share indices inched upwards by 34.19% and 46.47% to 87,071.03 and 12,276.49 points respectively.

    Market capitalization increased in both Malawi Kwacha and United States Dollar terms from MK4.33 trillion (US$4.22 billion) to MK5.86 trillion (US$5.56 billion) in the period under review.


    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 the quarter under review was recorded at 0.85%, lower than 0.89% registered in second quarter 2022. The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.34% in the review period while during the corresponding period of 2022 liquidity was at 0.20%.

    Market capitalization as a percentage of GDP was at 39.97% in Q2 2023 whilst in Q2 2022 it was at 24.08% .


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