Two listed financial institutions, FDH Bank plc and Standard Bank Malawi plc, have crossed the K4 trillion market capitalisation mark, as the Malawi Stock Exchange (MSE) posted a strong performance on Monday.
FDH Bank recorded a 10.47 percent jump in its share price, rising from K531.05 to K586.67, pushing its market capitalisation to K4.05 trillion
Standard Bank Malawi plc closed the day with a share price of K3,722.56, a notable 15 percent gain from the previous day’s K3,237.01.
This move brought the bank’s market capitalisation to K4.37 trillion.
Meanwhile, the Malawi All Share Index (Masi) jumped by 18,453.03 points to close at 411,540.85 while the Domestic Share Index increased by 16,549.69 points, settling at 311,693.48.
Market capitalisation rose to K22.4 trillion, with turnover hitting K683 million across 125 deals.
Commenting on the issue of gains, FDH Bank Head of Marketing and Communication Levie Nkunika expressed excitement with registered growth.
“We, as a bank, are focused on executing our strategy that focuses on providing accessible financial solutions by focusing on our customers, continuously innovating, operating efficiently and developing our people,” Nkunika said.
MSE Chief Operating Officer Kelline Kondowe said the performance was a testament to the value that companies and shareholders can benefit from being a listed company.
“It is exciting to see the growth of value of companies listed on the stock exchange. From the exchange perspective, we also see this as a sign of huge demand out there for us to increase the number of listings on the exchange,” she said.
Kondowe said with high liquidity on the market, as well as increased public awareness, MSE targets to bring more companies to meet rising demand.
Investor Benedicto Nkhoma said reaching the K4 trillion market capitalisation mark demonstrates the value potential of the stock market.
“With the share split of Standard Bank Limited, you can actually see the unlocking of value. The increase in market capitalisation also demonstrates that investors are willing to take a risk on those institutions because of future prospects and brand appeal,” he said.
Equity market analyst Kondwani Makwakwa attributed the market capitalisation milestone to rising demand for stocks amid limited supply.
Makwakwa said this imbalance pushes up share prices, making investors willing to pay more.
