MSE beckons firms to utilize stock market for fiscal recovery

By Bester Kayaye

The Malawi Stock Exchange (MSE) has urged the private sector, including mining companies, to utilize the local stock market in accessing a wide pool of funds through multi-platforms provided by the entity, especially during this period when a lot of companies have been affected by the Covid-19 pandemic.

MSE Operations Manager Kelline Kanyangala said after observing the country’s growing infrastructure developments that are capital intensive, MSE has been motivated to step into play with investment capital for private companies.

Kanyangala said strategic utilization of MSE funding can fast track the recovery process, reduce unemployment and increase individual’s disposable income since, as a platform for business investment capital, it is designed to facilitate growth of the private sector. 

She explained that currently MSE has three platforms that companies can utilize; The Main Board is for well established companies; the Alternative Capital Market Board targets small and medium enterprises while the Debt Board is for entities that would prefer not to use equity financing.

“Raising capital through the Exchange offers various benefits for a company including access to a wider pool of funds, access to cheap capital, increased visibility, enhanced corporate governance among others,” she said stressing that the role of the MSE is more pronounced now during the economic recovery process.

In a bid to secure its insurers, MSE has been offering Covid-19 compliant guidelines to listed stakeholders to facilitate holding of virtual meetings at a time when face-to-face meetings are discouraged due to Covid-19. Plans are underway to engage the listed firms on how best to utilise the Exchange in raising additional capital.

“The Covid 19 pandemic had a significant impact on the traded volumes transacted in 2020,” said Kanyangale. “In as much as the performance was positive, we so believe it could have been better had we not experienced Covid 19,”

She also expressed optimism to register new listings on the market having engaged several firms on the importance of being listed.

“We have had a number of engagements with potential issuers who had expressed interest to raise capital through the equity and bond platforms. It is too early to confirm on anything but we are hopeful that we will register new listings on the market,” she said

Established in 1994, MSE started equity trading in 1996 with National Insurance Company Limited (NICO) as the first listed firm and it has so far listed 16 companies.

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