Stock exchange engages authorities on performance

The Malawi Stock Exchange (MSE) has said it is engaging the government and financial authorities on measures to address challenges weighing on the stock market, which has lost an estimated K6 trillion in capitalization since the end of 2025.

In an interview on Tuesday, MSE Chief Executive Officer John Kamanga said the exchange was discussing possible policy interventions with the Ministry of Finance and the Reserve Bank of Malawi (RBM) to help restore investor confidence and attract more buyers to the market.

“We are still engaging with the policymakers; that is, the government, the Minister of Finance, the Reserve Bank [of Malawi], in terms of how best can you address this quagmire,” Kamanga said.

The market’s capitalisation has declined from about K33 trillion at the close of December 2025 to around K27 trillion in October 2026, amid sustained negative returns.

The Malawi All Share Index registered a year-to-date return of negative 19 percent as of October 23, compared with a positive 244.88 percent recorded during the corresponding period last year.

Kamanga attributed the decline partly to changes in investment limits for pension funds and insurance companies, which have traditionally been among the market’s largest and most active buyers.

“The buyers have become sellers and we are remaining with retail investors who do not have that capacity,” he said.

Kamanga added that addressing foreign exchange challenges was key to attracting foreign portfolio investors, who need assurance that they can repatriate dividends and capital gains.

“[For] a foreign portfolio investor, it will be difficult to come into our market when we have challenges with forex,” Kamanga said.

NGALANDE—For now, that is the only way out

He, however, described the market’s decline as partly a correction following the sharp increase in valuations in 2025, when capitalisation rose from about K9 trillion in 2024 to K33 trillion by December 2025.

NBM Pension Administration Limited Business Development Manager James Ngalande said extending the compliance period would allow institutional investors to dispose of their shares gradually, potentially easing selling pressure on the market.

“For now, that is the only way out with a situation [we have]. By the time the extension has been completed, the same institutional investors who were selling will now be buying the positions that have been adjusted,” Ngalande said.

He said pension funds and other institutional investors were among the main drivers of demand on the stock exchange.

Investor Benedicto Nkhoma said uncertainty surrounding the market could affect investor confidence and make investment decisions more difficult, as potential investors weigh the risks associated with committing funds.

He said the authorities needed to provide greater certainty on the direction of economic and tax policies while maintaining transparency and engaging market participants before introducing measures that affect investment decisions.