The Malawi Stock Exchange has been named as Africa’s best market performer with Tanzania in first place now.
According to African Capital Markets, Tanzania Stock Market, with a year return of 20.5 percent dislodged Malawi to second position with a return of 17.3 percent.
Uganda is third with a return of 12 percent.
FDH Stockbrokers Manager Nelson Mkwende said though the Malawi exchange has dropped to position two, it is still a good performance.
“It is still a good performance for Malawi Stock Exchange despite the drop to position two during the month of July and we hope to see this performance trickling down to year end as demand for most counters keeps increasing at the back of potential good half year results,” he said.
He also noted that the 3.33 percent downward movement of FMB share price brought a slowdown on the Malawi All share Index (Masi) movement.
“The 3.33 percent downward movement of FMB share price to K14.50 per share from K15.00 per share on 24 July 2014 brought a slowdown on the upward shift of the Masi which closed at 13,468.87 points on the same day, 8.93 points up at the back of Mpico’s 200 tambala upward shift.
“The Masi ended up closing at 13,539.39 points at the end of July 2014 and left Malawi Stock Exchange on position two with an overall 17.3percent gain while Tanzania registered a 20.5 percent gain. FMB lost the 50 tambala in July mainly because of desperate sellers who just wanted to walk out the counter,” said Mkwende.
Mkwende earlier confided in our reporters that the Malawi stock market was a best performer in the region at a time when no one expected it.
He said being a best performer meant that investors considered the stock market to be a serious investment option going forward.
He added that the performance of the market can only improve if Malawians take an active role to develop the knowledge base of the potential investors so that they understand the stock market in general.
Mkwende, however, lamented the culture prevailing in Malawi where many people with residual income have little or no knowledge about the stock market thereby only thinking of buying or constructing buildings or placing their money in the bank but said very few place their money on the money market.