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Exchange hails competition
By
Ephraim Munthali - 02-12-2002 |
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Malawi Stock Exchange (MSE) board chair Krishna Savjani says liberalisation has increased the number players in the financial industry with more banks, insurance companies and specialist players like discount houses joining the market.
Speaking at the exchange’s awareness evening in Blantyre on Friday, Savjani said the environment has brought healthy competition in the industry, noting that the new players on the market have given the public a chance to experiment and choose the best.
“Most of us thought that the market was too small for new players. The new players have brought in dynamism, change, competition and better services for the public,” Savjani said.
He said that although high interest rates at the moment do not encourage savers to buy shares, there are still gains to be made since most of the shares are undervalued.
“As the financial sector expands, it is inevitable that the stock exchange will become more active. More companies will list. Advisors will advise new forms of financing. The reliance of loan financing will decrease.
“The merits of cheaper finance through the sale of shares will become apparent. The more shareholders that a company has, the greater the pressure on management to perform,” he said.
Savjani pledged that MSE will be ready to and able to provide a regulated market for those who want to raise capital and those who want to invest their savings.
He said the exchange will continue with similar awareness campaigns and make visits to various enterprises to sensitise people on the MSE and its functions to promote the development of the capital market in the country.
Established under the Capital Market Development Act (1990), MSE started its operations in 1996 and has since been responsible for regulating the listing of shares and trading and assisting in clearing securities.
Currently, nine companies—Blantyre Hotels Limited (BHL), Sugar Corporation of Malawi (Sucoma), National Insurance Company (Nico), Packaging Industries Malawi (PIM), National Bank of Malawi (NBM), Commercial Bank of Malawi (CBM), Press Corporation Limited (PCL), Sunbird Tourism Limited (Sunbird) and Old Mutual Limited (OML) — are listed on the MSE.
The awareness evening attracted about 200 people, most of whom chief executives and economists from both the private and public sectors.
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