Malawi | MSE

Illovo’s fortunes, as an integrated agriculture entity, are greatly affected by yields from the farm, efficiencies at the sugarcane milling plant, and the price of sugar in the market. The company’s sugarcane estates score highly, with yields per hectare of 98 to 100 tonnes in recent times, against a world average of 70-80 tonnes and sucrose
content of 14.10% which is very competitive. Total production from the company’s estates has grown by 30% from the low point of 230 000 tonnes in 2018 to 279 000
tonnes in 2021.

Illovo is also an acknowledged low-cost producer, thanks to irrigation facilities, good climatic conditions, and high cane yields. This low-cost status will allow Illovo to remain competitive in the export markets even during soft commodity price periods. As well, the company is Malawi’s biggest of the two sugar producers and thus, can control its margins without comprising demand. At the same time, the demand for sugar is generally inelastic.

Download (881.22 KB)

In the year 2021, the market transacted a total of 1,301,122,424 shares at a total consideration of MK37,690,252,891.52 (US$43,751,349.63) in 3,304 trades. In the corresponding period 2020, the market transacted a total of 1,645,194,139 shares at a total consideration of MK41,085,584,358.55 (US$54,522,713.98) in 3,114 trades. This reflects a -20.91% decrease in share volume traded and a –8.26% (-34.33% in US Dollar terms) decrease in share value traded. Of the shares traded, 251,090,910 FDHB, 260,204,249 ICON, 15,500,000 NBS, 321,479 OMU, 4,639,922 PCL and 309,785,937 TNM traded as negotiated deals.

The Malawian mobile telecommunications market is a duopoly, with Telecom Networks Malawi (TNM) and Airtel Malawi (Airtel) as the two players. These hold 56% and 44% of registered sim cards for Airtel and TNM respectively.

The Reserve Bank of Malawi (RBM) Financial Stability Report as of 30 June 2021, highlighted that the financial sector remained safe and sound, based on capital adequacy, liquidity, and growth in profitability. However, asset quality deteriorated marginally to 6.6% from 6.2% at December 2020.

The market registered a positive month-on-month return on index of 3.85%(2.96% in US$ terms), 12.67% on a YTD. It however, registered a decrease in both total traded volume of shares and value during the month under review.

The market was bullish in Q2 2021 as it registered a positive return on index of 7.93%(5.14% in US$ terms), 2.09%(1.95% in US$ terms) in Q2 2020. It also, registered an increase in total traded value and total volume of shares traded. On the Debt Securities Board, the market registered the first two trades on debt securities issued by MyBucks Banking Corporation...