Malawi | MSE

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...

The Malawi Stock Exchange performed admirably in 2020, with the MSE All Share Index returning 7.08%. This positive return was achieved in spite of a difficult business environment emanating from the Covid-19 pandemic and containment measures initiated thereafter. Arising from the pandemic was the expectation of poor results from banks as a result of a hike in NPL provisions and lower asset yields. Property and Tourism companies were also expected to come under severe pressure. On the other hand, telecom shares were expected to benefit from the pandemic in the form of higher demand for data, more transactions on mobile money platforms, and increased voice calls as subscribers conducted business on the mobile phone while working from home or remotely ...