Nitl reports K27 billion loss, analysts say firm exposed

National Investment Trust plc (Nitl), a collective investment scheme listed on the Malawi Stock Exchange (MSE), has reported a K27 billion loss in the first half (H1) of 2026, reflecting weaker investment income on the 17-counter bourse.

The decline underscores how falling share prices between January and June, have eroded returns for institutional investors reliant on equity income.

The setback follows a broader downturn in pension and life insurance assets, which dropped by two percent and 5.3 percent to K7.8 trillion and K5.1 trillion, respectively, on low investment income and heavy unrealised losses.

Nitl’s results for the six months ended June 30 show a negative 10 percent return on investment, compared with the MSE’s 12.3 percent decline, highlighting the firm’s exposure to share price volatility.

Reads part of the report: “The company registered a loss after tax of K26.97 billion in the first half of 2026 compared to a profit of K84 billion in the same period last year.

“Fair value loss on equity investments stood at K30 billion compared to fair value gains of K83.4 billion reflecting the bearish performance of our investee companies on MSE.”

During the period, MSE market capitalisation lost K4.1 trillion as it plummeted from K32.5 trillion in January to K28.4 trillion on June 30 2026 following share value drops in most financial and telecommunications counters.

Stock market investor Brian Kampanje said in an interview yesterday that although the uncertainties surrounding MSE in H1 affected Nitl, the investment firm is poised for quick recovery mainly due to the recent listing of Continental Holdings plc and the share split of Press Corporation plc.

“The listing of Continental Holdings provides a massive boost for its balance sheet size coupled with the share split of Press Corporation allowing it to have massive capital gains and entitled to more dividend income,” he said.

While highlighting that the overall impact at the year-end could turn out to be positive for Nitl, Kampanje suggested the company should include more high-yielding instruments, especially in the government securities, which are currently a small portion of the overall assets.

Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said in an interview the loss reflects the direct impact of the sharp deterioration of MSE, with the market shifting from strong positive returns last year to negative territory this year.

“Given Nitl’s exposure to listed equities, weaker investment income was largely unavoidable and this highlights the sensitivity of earnings to market conditions,” he said.

Makwawa said recovery will largely depend on an improvement in capital market performance during the second half.

Equity Masters Limited board chairperson Purity Chitalo said as an investment holding company, Nitl’s profit and loss is heavily tied to performance of the stock exchange.

He urged diversification of Nitl’s investment portfolio to hedge against exposure.

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