Malawi stock market trading updates

 Malawi stock market trading updates

Malawi stock market trading updates.

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The National Bank of Malawi (NBM) plc has announced that it has now completed the acquisition of a 51 percent controlling stake in Akiba Commercial Bank plc (ACB) in Tanzania for a consideration of USD 7.31 million.

A MSE statement says the acquisition, made through a share subscription, is in line with NBM plc’s current strategic plan which has regional expansion as one of its key thrusts.

“This acquisition is expected to bring about growth in business for both NBM Plc and ACB as it upscales the business of ACB to the standards of NBM plc,” the statement announces.

NBM is listed on the Malawi Stock Exchange with a market capitalization of K304 billion (US$388 million). The investment in ACB is approximately 2 percent of the NBMs current market capitalization.

ACB is a Tanzanian bank offering a range of banking and financial services. It was established in 1997 with 300 Tanzanian entrepreneurs as its initial shareholders. It has strong SME roots and operates 18 branches across Tanzania.

Meanwhile, the statement advises NBM shareholders that negotiations are continuing for an additional stake in ACB.

Other trading announcements include ongoing shareholding negotiations by FDH Financial Holdings Limited, the majority shareholder in FDH Bank plc to effect changes in the company’s shareholding structure.

“Shareholders are therefore advised to exercise caution in dealing in their shares and consult professional advisors before dealing in their shares until such time as the result of the negotiations is known.” Reads the statement in part.

Further the statement discloses that by the end of December, 2020, Malawi’s NICO Holdings plc, a listed entity on the Malawi Stock Exchange (MSE), registered improved market performance as a result of profits made by its subsidiary, NICO Life Insurance Company Limited.

According to the MSE trading statement, actuarial adjustments in NICO Holdings’ group profit after tax for the year ended 31st December 2020 are expected to be higher by more than 20 percent from that of the previous corresponding period.

Illovo Sugar (Malawi) plc also declared an anticipation of its profit after tax for the half year ended 28 February 2021 to be 60 percent higher than the previous corresponding period. However, by the end of the said period, the profit had actually risen to 200 percent higher than that of the corresponding period ended 28 February 2020.

“This is attributed to a more favourable sales mix with higher tonnage in more profitable markets than previously anticipated,” explained an MSE statement.

Improved collection of rental balances that existed at year end as well as movements in the national consumer price indices reduced deferred tax expenses and increased ICON Properties Group’s profits under ICON Properties plc despite the 2020 financial results not necessarily differing from that of the previous year by more than 20 percent.

Charles Mkula

Charles Mkula has over 15 years of working as a Malawian newsroom news reporter and editor as well as a freelance journalist for a number of international news outlets, Charles Mkula has worked as a Public Relations Officer for a Malawi/Germany urban development project. He co-founded Hyphen Media Institute, a platform for sharing information generated from policy debate and advocacy activities. Charles likes reading, writing, traveling, exercises, making friends, listening to music, watching TV, documentaries and cartoons.

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