Malawi | MSE

The market transacted a total of 132,789,838 shares at a total consideration of MK5,451,082,198.85 (US$5,310,695.04) in 396 trades in the month of August 2022. In the previous month of July 2022, the market transacted a total of 270,135,789 shares at a total consideration of MK4,699,257,991.85 (US$4,578,233.31) in 360 trades. This reflects a –50.84% decrease in terms of share volume traded and a 16.00% (16.00% in US Dollar terms) increase in share value traded. Of the shares traded 5,750,000 Illovo and 9,417,237 NBS shares traded as negotiated deals at a total consideration of MK2,488,344,740.00.

The market transacted a total of 270,135,789 shares at a total consideration of MK4,699,257,991.85 (US$4,578,233.31) in 360 trades in the month of July 2022. In the previous month of June 2022, the market transacted a total of 63,165,048 shares at a total consideration of MK1,094,757,875.18 (US$1,071,441.26) in 287 trades. This reflects a 327.67% increase in terms of share volume traded and a 329.25% (327.30% in US Dollar terms) increase in share value traded. Daily average share trades exhibited similar trends where the market registered an average daily volume of 13,506,789 shares compared to 2,871,139 shares traded in June 2022, reflecting an increase of 370.43%.The average daily turnover for July 2022 was MK234,962,899.59 (US$228,911.67) compared to MK49,761,721.60 (US$48,701.88) in June 2022, reflecting an increase of 372.18% (370.03% in US Dollar terms).

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.

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 in the month of April 2022. In the previous month of March 2022, the market transacted a total of 49,167,195 shares at a total consideration of MK1,794,403,820.60 (US$2,197,946.33) in 306 trades. This reflects a 15.35% increase in terms of share volume traded and a 304.29% (304.17% in US Dollar terms) increase in share value traded. Of the total shares traded 17,828,130 TNM shares traded as a negotiated deal.

The market registered a positive return on index of 1.22% (1.22% in US$ terms) in Q1 2022 higher than the corresponding period 2021 of 0.53% (-1.25% in US$ terms). It also, registered an increase in both total volume of shares and total value traded.There was neither any listing nor a trade on the debt market during Q1 2022.

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.

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