Business and Finance

Mixed views on stock market performance

Mixed views on stock market performance

Analysts are divided in opinion on performance of the Malawi Stock Exchange (MSE) in the first half of 2024.

In an interview, General Secretary of the Financial Market Dealers Association James Mbingwa said compared to the same time last year, MSE performance in the first half of 2024 was lower.

He cited a return of about percent during the period compared to around 65 percent recorded during a similar period in 2023.

However, he was quick to mention that the performance had been improving.

“The outlook looks positive. We have had a number of companies release positive trading statements that their performance for the first half of 2024 is going to be much better than the first half of 2023, and that only means one thing, the market is on those counters,” Mbingwa said.

He added that the performance is going to be better in the second half of the year.

Kondwani Makwakwa

In a separate interview Stockbrokers Malawi Limited Equity Research Analyst Kondwani Makwakwa said MSE performed well considering the return registered.

“We are going to attribute this to an increase in share price, especially those in the banking sector and in tourism,” Makwakwa said.

MSE Chief Operating Officer Kelline Kondowe said the first half performance has generally been positive with a positive year to date return of 9.15 percent and traded volumes of around 239.2 million shares with a total value of K31.78 billion.

Kondowe conceded that when compared to last year, the return is lower while also noting a decline in traded volumes and not much movement in traded value of shares.

“Despite all this we are happy to see that the market continues to provide positive returns to investors and we are also glad to note the rise in the number of transactions that are happening on the market despite the drop in volumes,” Kondowe said.