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| PCL gains prop domestic index |
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by
Ephraim Munthali, 05 October 2004
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17:02:51
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Malawi’s share market continues to enjoy gains , with the share price of the country’s largest company more than doubling to K23 at the beginning of the last quarter from K9.50 in the first quarter of 2004.
Press Corporation Limited (PCL), which analysts believe controls more than half of Malawi’s economy, started attracting investors’ interests after news that it could buy Malawi Telecommunications Limited (MTL) through the government’s privatisation programme.
MTL is seen as a booster to Press’ profitability as the lone ground phone operator is one of the state’s most profitable companies.
The week before saw more than two million PCL shares changing hands at K22 in a single deal that stock brokers said was a vote of confidence in President Bingu wa Mutharika’s economic reforms.
“PCL is one company which has deep roots in major sectors of the economy. This deal just confirms what we are all anticipating—that the economy could be on a path to recovery,” Henderson Nyondo, a broker at Stock Brokers Malawi Limited told a local daily last week.
Press has several companies in the financial sector, oil industry, agriculture, manufacturing, real estate and now eyes telecommunications and tourism.
On Friday, the Domestic Share Index (DSI)—a barometer that measures trade activities on the local bourse—rose to 399.76 points from 397.03 points, thanks to the group’s impressive performance.
By the end of August, the DSI rose 830 basis points or 47.1 percent to close the month at 343.91 points after shading 20.3 percent last year.
MSE operations manager John Kamanga told The Nation recently that lower interest rates and the relative stability of the kwacha during the period helped attract investors to the bourse.
“We have experienced a realignment of portfolio investment from treasury bills in the money market to shares in the equity market,” said Kamanga.
Counters like Stanbic Bank, National Bank, Nico Holdings, Sugar Corporation of Malawi and foreign counter representative Old Mutual were also active on the bourse last wee.
With nine listed firms, the MSE has a market capitalisation of US$100 million .
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