Financial market experts have predicted an increase in investments and continued improvement in trading activity on the Malawi Stock Exchange (MSE) in the second half of the year on the back of a positive outturn in the past six months.
About 13 counters already predicted to post good tidings, with their profitability growth earmarked to range from 40 percent to an astonishing 666.7 percent as at half year.
National Investment Trust Limited expects to post a 666.7 percent profit jump for the half year period, having reported an expected profit-after-tax of K11.5 billion as compared to K1.5 billion reported during the same time last year.
Several other companies on the MSE are also set to experience notable profit growth, contributing to the overall positive performance of the market.
For example, Sunbird Hotels Limited expects a remarkable profit increase of 280 percent, followed closely by Illovo, which projected a growth rate of 266.3 percent.
Nico, TNM, NBS Bank, Mpico, Airtel, Press Corporation, FDH Bank, Standard Bank, National Bank, and FMB Capital Holdings expect profit growth ranging from 40 percent to 158.5 percent.
But Blantyre Hotels Limited points to a possible loss; which is expected to be 50 percent lower than at the same time last year.
Market analyst Bond Mtembedzeka said there is a strong likelihood that share prices may increase should demand be sustained and strengthened owing to the good performance of listed counters.
“We should expect a continued appetite for stocks from the general investing community and that also means that dividends should be better next year all else being equal,” Mtembedzeka said.
Minority Shareholders Association of Listed Companies General Secretary Frank Harawa said the development has excited investors on the stock market.
“From now to December, people will make more money because of two factors; one, this means that there will be substantial dividends for the shareholders and two, the capital gains will be high and so all shareholders are very excited,” Harawa said.
MSE Chief Operating Officer Keline Kondowe rated the market performance as satisfactory this far.
“The Stock Exchange was established to create and provide value for Malawians and we believe this is being realised as companies continue to perform well despite the developments in the macroeconomic environment,” Kanyangala said.
