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| Business |
| Stanbic shares record 15t dip |
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by
Aubrey Mchulu, 08 July 2003
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18:47:23
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Share value for the newly-launched Stanbic Bank Malawi, formerly Commercial Bank of Malawi (CBM), has dropped from K6.15 to K6 each based on last week’s trading on the Malawi Stock Exchange (MSE) but market analysts have described the development as a normal fluctuation due to forces of demand and supply.
Stockbrokers Malawi Limited chief executive Ivan Chisala said in an interview on Tuesday the drop would have been alarming if it were substantial.
“This decrease is no cause for alarm in the market because it is not something to do with fundamentals of the company such as future outlook. If the price had dropped from K6.15 to K5, yes, we would have been alarmed,” he said.
Chisala, one of the market analysts who described the soaring of Stanbic share value two weeks ago as an indication of investor confidence in the international bank, brushed aside suggestions that reports of messy bank accounts due to the transition from CBM to Stanbic and unrolling of a new software contributed to the minor drop.
MSE said the market recorded trading activity in three counters only—Stanbic, National Bank of Malawi (NBM) and Old Mutual—during the week ended July 4, 2003 when 10,087,708 shares were traded for K67,225,700 million (about US$747,701.59) in eight deals.
Two weeks ago, the market also traded on three counters —Stanbic, NBM and Press Corporation Limited — out of nine companies registered on the exchange.
Incidentally, Stanbic shares, whose value two weeks ago pushed the main market barometer, the Malawi All Share Index (Masi), up to 327.58 points after a short rest, moved the Masi downwards to 327.56 points.
“The Malawi All Share Index moved downwards to 327.56 points from 327.58 points due to a decrease in the Domestic Share Index from 207.77 to 207.02 points resulting from a decrease in the share price of Stanbic from K6.15 to K6 per share,” reads the weekly MSE report adding the Foreign Share Index remained steady at 134.48.
Interest on 63-days Reserve Bank of Malawi (RBM) bills increased from 39.94 percent to 43.30 percent on July 1, 2003 while the 91-days tenor yield slightly increased from 43.40 percent to 43.50 percent, MSE quoted RBM as reporting.
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