The 16-counter Malawi Stock Exchange (MSE) has recorded a mixed performance with stocks in the banking sector dominating share price gains between October last year to date.

The performance, according to analysts, signals the confidence that investors have in the sector as banks have remained resilient regardless of the subdued economic environment, largely due to foreign exchange trade during the review period.

Figures from the MSE show that three counters in the banking sector, namely National Bank of Malawi (NBM) plc, Standard Bank Malawi plc and FMB Capital Holdings (FMBCH) plc, which owns First Capital Bank, have registered significant share price gains while NBS Bank plc share price has been static at K22.

Between October last year to date, NBM share price rose by K461 to K1 162 from K701 while Standard Bank plc and FMBCH share prices have increased by K591 and K44 from K1 250 to K1 842 and from K54 to K100 respectively.

Speaking in an inteview yesterday, Minority Shareholders Association of Malawi secretary general Frank Harawa said the share gains in some counters is good news for investors.

But he bemoaned the decline in share prices in other counters as investors are losing out on their investment.

He said: “While the stock market performance is generally good this year, it is only six companies that are doing well in terms of capital gains and this is of concern to shareholders.

“We invest in these companies with expectations that the capital gain will be growing as time goes by.”

Meanwhile, MSE figures show that Blantyre Hotels Limited, FDH Bank plc, Icon Properties, Mpico, Nico Holding plc, Old Mutual Malawi plc, Sunbird Tourism plc and TNM plc have registered share prices losses during the period.

Commenting on the general market performance this year, Stockbrokers Malawi Limited chief executive officer Noel Kadzakumanja said the outlook gives hope that the market will close the year with better performance.

He said: “Despite the decline in values and volumes traded in the six months of 2022, the overall measure of the stock market points to a better performance compared to last year.

“While a good number of companies have registered declines in share price, the price gains made by a few counters have been enough to offset losses on the rest of the counters.”

Bridgepath Capital Limited chief executive officer Emmanuel Chokani in an interview observed that banks have been resilient and posted good performance largely due to non-interest income mostly from foreign exchange trading and growth in loan book for some banks.

On her part, MSE operations manager Kelline Kondowe said there been quite a few developments within the macroeconomic environment which have heightened uncertainties of the economic environment and impacted on firms differently.

She cited rising inflation rate, the exchange rate and the shortage of foreign exchange.

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