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| Sucoma props up main share index |
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by
Ephraim Munthali, 10 February 2004
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16:26:54
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The Malawi All Share Index (Masi)—a measure of trade activities on the local stock market—last week moved six paces up to 457.41 points from 457.35 the previous week.
The jump in Masi resulted from a rise in the share price of Sugar Corperation of Malawi (Sucoma) from K4.00 to K4.10, according to the Malawi Stock Exchange (MSE).
The Sucoma price gain then pushed the Domestic Share Index (DSI) to 234.00 points, up from 232.23.
During the period under review, Sucoma transacted a total of 11, 795 shares.
Other companies whose shares changed hands are: National Bank of Malawi (6,500), Nico Holdings (60,000) and Packaging Industries Malawi (18,000).
Old Mutual, which represents the Foreign Share Index (FSI), traded 2,100 shares, leaving the foreign index steady at 188.53 points.
The capital market is still being haunted by the money market whose ability to generate high profits within a short time has in the past couple of years forced investors to damp stocks.
Currently, interest on Treasury Bills (TBs)—charged on money government borrows from the local market—is on its way up, after significant drops in November and December.
At the auction held on January 30, the average yield on the 91-days T-Bill increased from 33.96% to 34.03% and the 182 days rose from 33.78% to 34.45%.
But the 273 days tenor decreased slightly to 34.54 from 34.55 %.
In the RBM primary market whose auction was held on January 27, the 63-days RBM yield fell from 32.54 to 32.25% while the 91 days tenor yield dropped to 34.52% from 34.16.
An increase in TBs means that government fiscal discipline is on the loose again, a situation that might lead to high interest rates, a reverse of what the private sector and donors want to see. |
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