MALAWI STOCK EXCHANGE: MONTHLY TRADING REPORT OCTOBER 2013

The Market registered a monthly return on index of 15.22%(9.02% in US Dollar terms) to close the month of October at a record high of 12219.25 points compared to 10604.97 points in September 2013. It also recorded an increase in traded value and volume compared to the previous month of September 2013.

Trade Performance Analysis

From 1st October to 31st October, 2013 a total of 62,938,188 [14,207,129 in October 2012] shares were transacted at a total consideration of MWK 959,642,474.18(US$2,472,730.41) [MWK 131,961,923.05(US$422,064.83) in October 2012] in 155 trades. In the previous month, September 2013, the market transacted a total of 61,993,884 shares at a total consideration of MWK 362,504,304.73(US$1,017,344.83) in 171 trades. This reflects a 1.52% increase in terms of share volume and 164.73% (143.06% in US Dollar terms) in share value.

The market registered an average daily volume of 2,997,057 shares in October 2013 compared to 2,952,090 shares in September 2013.
The average daily turnover for October 2013 was MK45,697,260.68 (US$117,749.07) compared to MK17,262,109.75 (US$48,444.99) for the previous month, reflecting an increase of 164.73% (143.06% in US Dollar terms).

Market Capitalisation and Index

The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (MASI) from 10604.97 points registered on 30th September 2013 to 12219.25 points registered on 31st October 2013, giving a monthly return on index of 15.22%, (9.02% in US$ terms). The price gains registered by eight counters, ILLOVO, NBM, NBS, NICO, PCL, STANDARD BANK, TNM and OML were the major drivers resulting into an increase in both the Foreign Share Index and the Domestic Share Index by 29.91 points from 1296.86 points to 1684.20 points and by 15.02 points from 8349.65 points to 9603.54 points (8.82% in US$ terms) respectively.

Market Liquidity

The turnover velocity measured by the ratio of Total Value of Trades to Market Capitalisation (TVT/MCAP*) in October was recorded at 0.19% compared to 0.08% registered in the previous month. The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.05% compared to 0.02% recorded in the previous month.

Economic Position

The Malawi Kwacha (MWK) depreciated against all major trading currencies between 30th September and 31st October, 2013. The year on year headline inflation stood at 21.7% in September 2013 down by 1.6% on account of a drop in non-food inflation from 28.9% in August 2013 to 24.2% in September 2013. The urban and rural inflation rates for the month of September 2013 were 31.0% and 16.9% respectively.

The 91 days, 182 days and 364 days treasury bills inched upwards by 69.50%, 31.38% and 36.97% respectively between September and October.
Import cover fell by 10.08% from 2.38 months on 30th September to 2.14 months on 25th October, 2013.