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 ...
The Malawi All Share Index inched up 50bps during the quarter to close at 32,562.96 influenced by banking stocks which rallied on stellar results while the rest of the counters retreated weighing down the increase in the index. Malawi banks seem to have defied the general downward trend in earnings brought about by the effects of Covid-19. In general net interest margins seem to be the drivers of revenue across the board – only reducing marginally suggesting that there was little adjustment in existing loan facilities in response to the pandemic. The banks are not the most popular lot in the court of public opinion as a result.
