Reserve Bank of Malawi Monthly Economic Review November 2018
Table of Contents 1.0 INTRODUCTION... 1 1.1 Gross Official Reserves... 1 1.2 Exchange Rates... 1 1.3 Money Supply... 1 1.4 Interest Rates... 1 1.5 Inflation... 1 2.0 EXTERNAL SECTOR... 2 3.0 BANKING AND FINANCE... 3 4.0 CENTRAL GOVERNMENT BUDGETARY OPERATIONS... 7 5.0 PRODUCTION AND PRICES... 9 6.0 MONEY AND SECURITIES MARKET... 11 7.0 CAPITAL MARKETS... 16 APPENDIX... 19
LIST OF TABLES Table 1: Money Supply and its Sources... 4 Table 2: Central Government Budgetary Operations... 8 Table 3: Financial Market Operations... 11 Table 4: Treasury Bills Issuance and Maturity... 13 Table 5: Banking System Liquidity... 15 Table 6: Interest Rate Structure... 15 Table 7: Selected Economic Indicators... 19 Table 8: Year on Year Inflation... 20 Table 9: National Consumer Price Indices... 21 Table 10: Selected Exchange Rates... 22 Table 11: Malawi All Share Indices... 23
GENERAL NOTES This Economic Review is produced by the Reserve Bank of Malawi (RBM) with the aim of providing current economic information to stakeholders. The Review is published within six weeks after the end of the reviewed month. This particular issue outlines domestic financial and macroeconomic developments during the month of October 2018. Owing to the rounding up of figures, separate items may not always sum to corresponding totals. In the tables, the following symbols should be noted:.. Means not available - Means nil or less than one half the significant digit * Means projection + Means revised figure ^ Means preliminary figure All queries relating to this publication should be forwarded to the Director, Economic Policy Research Department, Reserve Bank of Malawi, P.O. Box 30063, Capital City, Lilongwe 3. Tel: 265 1 771 600; or Fax 265 1 770 593; or Email: research@rbm.mw.
1.0 INTRODUCTION This Economic Review highlights economic developments during the month of November 2018. The analysis covers developments in the exchange rates, money, credit and interest rates, inflation and real sector. The report also highlights developments in government operations and the stock exchange market. 1.1 Gross Official Reserves Gross official reserves stood at US$606.8 million in November 2018 compared to US$619.9 million recorded in October 2018. 1.2 Exchange Rates The Malawi kwacha was stable against the United States dollar, although it depreciated slightly against other currencies. 1.3 Money Supply Broad money supply (M2) growth accelerated to 12.8 percent (year-on-year) in November 2018 from 11.1 percent in October 2018, but was below 19.1 percent recorded in November 2017. The increase in annual growth of M2 was driven by Net Domestic Assets (NDA) of the banking system. Month-on-month, M2 increased by K38.3 billion to K1.1 trillion as at end-november 2018. 1.4 Interest Rates The Policy rate remained at 16.0 percent in November 2018. Consequently, interest rate structure of commeercila banks remained unchanged, with the average base lending and the average savings rates at previous month s positions of 24.78 percent and 8.39 percent, respectively. 1.5 Inflation The upward trend in inflation witnessed since July 2018 continued in November. Driven by rising food and non-food prices, headline inflation rose by 0.4 percentage points to 10.1 percent in November 2018, from 9.7 percent registered in October 2018. Food inflation stood at 10.8 percent from 10.4 percent in October 2018, while non-food inflation stood at 9.5 percent from 9.2 percent in October 2018. However, a slowdown in overall Month-on-Month (M-o-M) inflation was observed, registering a 1.5 percent rate, from 1.9 percent in the preceding month and 4.3 percent in November 2017. 1
2.0 EXTERNAL SECTOR 2.1 Foreign Exchange Reserves Foreign exchange reserves were recorded at US$606.8 million in November 2018. This was slightly lower than US$619.9 million recorded in October 2018. Foreign exchange inflows increased to US$141.7 million in November 2018 from US$100.6 million recorded in October 2018. The increase in inflows was explained by the IMF Balance of Payments support amounting to US$15.4 million and relatively higher volume of foreign exchange purchases in the month under review than in the previous month. Outlays of foreign exchange stood at US$179.6 million in November 2018. The expenses largely comprised sales of foreign exchange amounting to US$137.2 million. 2.2 The Malawi Kwacha Exchange Rates The Malawi kwacha remained broadly stable as it appreciated marginally by 0.4 percent in the month under review to trade at K733.20 per dollar. In November 2017, the kwacha traded at K732.25 per US dollar. However, the kwacha depreciated slightly against the pound and euro by 3.2 percent and 1.6 percent, respectively, to trade at K968.95 per pound and K845.14 per euro. The weakening of the kwacha was partly driven by the strengthening of the pound and euro as Britain is due to leave the eurozone in the first quarter of 2019. Similarly, the kwacha depreciated slightly against currencies of the Asian trading partners in the month under review. The depreciation of the kwacha was explained by strengthening of the Asian currencies following increased investor confidence as US and China agreed to a 90-day pause in new tariffs as the two countries tried to settle their trade dispute. Against the Chinese yuan and the Japanese yen, the kwacha marginally slid by 0.5 percent and 1.0 percent, respectively, to trade at K105.21 per Chinese yuan and K6.50 per yen. Meanwhile, the local currency was stable against Indian ruppee and traded at K9.85 per ruppee. Within the SADC region, the kwacha depreciated by 1.1 percent against the South African rand and traded at K50.98 per rand. The weakening of the kwacha was explained by strengthening of the rand in the reviewed month due to a rise in consumer confidence. However, the local currency strengthened by 4.3 percent against Zambian kwacha and traded at K59.60 per ZMK. The appreciation of the local currency was due to a depreciation of the Zambian kwacha as a result of 2
loss of investor confidence following withholding of IMF assistance coupled with dwindling foreign reserves in Zambia. 3.0 BANKING AND FINANCE 3.1 Broad Money and its Components Broad money supply (M2) growth (year-on-year) increased to 12.8 percent in November 2018 from 11.1 percent in October 2018. This follows a decline from 15.1 percent in September 2018. At 12.8 percent, broad money growth was lower than 19.1 percent recorded in November 2017. The upturn was on account of the banking system s creation of NDA amounting to K56.7 billion in the month of November 2018. In a similar period in 2017, annual growth rate of M2 stood at 19.1 percent. On a month-on-month basis, M2 increased by K38.3 billion (3.4 percent) to K1,168.4 billion compared to a contraction of K10.5 billlioh (0.9 percent) in the preceeding month. The growth was on account of both narrow money (M1) and quasi money (QM) which increased by K26.3 billion and K12.0 billion to K563.9 billion and K604.5 billion in the month, respectively. In terms of components of M1, demand deposits grew strongly by 22.4 billion to K378.0 billion whereas currency in circulation increased by K3.8 billion to K185.9 billion. The growth in demand deposits partly reflected economic agents placement of their money balances into the more liquid form to facilitate purchase of farm inputs as the economy approached the agricultural season. Further, the increase in QM was driven solely by term (time and savings) deposits which grew by K29.5 billion to K423.9 billion in the month. Meanwhile, foreign currency denominated deposits fell by K17.4 billion to K180.6 billion, reflecting the economic agents drawdown of their Foreign Currency Denominated Accounts (FCDA) balances on the back of reduced foreign exchange inflows as the economy is in the lean period. (Table 1). 3
Table 1: Money Supply and its Sources (in MK billion, unless otherwise stated) 2017 2018 Dec Mar May Jun Jul Aug Sep Oct Nov Money Supply (M2) 1,074.4 1,021.0 1,110.8 1,141.7 1,132.4 1,140.7 1,140.6 1,130.1 1,168.4 Narrow money (M1) 482.5 463.8 529.8 544.7 532.8 547.2 502.5 537.7 563.9 Quasi-money 591.8 557.2 581.0 597.0 599.6 593.5 638.1 592.4 604.5 Net Foreign Assets 455.5 344.0 346.8 407.5 352.6 364.1 330.1 270.1 251.6 Net Domestic Assets 618.9 677.0 764.0 734.2 779.8 776.6 810.5 860.0 916.7 Domestic Credit 926.3 964.2 993.1 934.9 945.8 1,041.1 1,027.2 1,077.9 1,151.3 Government (Net) 508.3 561.9 559.5 494.6 486.2 576.8 546.3 579.9 652.6 Private Sector 409.8 398.0 421.2 428.3 438.5 439.5 447.3 464.7 466.2 Other Pub. Sector 8.1 4.4 12.4 12.0 21.1 24.8 33.6 33.3 32.5 Other Items (Net) -307.4-287.1-229.2-200.8-166.0-264.5-216.7-217.9-234.6 Annual M2 growth (%) 19.7 17.0 20.2 14.6 11.1 11.0 15.5 11.1 12.8 Monthly M2 growth (%) 3.7-1.1 6.0 2.8-0.8 0.7 0.0-0.9 3.4 Reserve Money 278.9 255.0 290.1 300.8 307.8 324.2 298.5 291.5 314.9 Money Multiplier 3.9 4.0 3.8 3.8 3.7 3.5 3.8 3.9 3.7 Source: Reserve Bank of Malawi Consequent to the above developments, the contribution of M1 to the annual growth rate of M2 increased to 9.7 percent from 7.0 percent recorded in the preceding month whereas the share of QM decreased to 3.1 percent from 4.1 percent in the previous month. 3.2 Counterparts to Broad Money On the assets side, the monthly increase in M2 was solely supported by NDA of the banking system which increased to K916.7 billion from K860.0 billion and K578.6 billion in October 2018 and November 2017, respectively. Meanwhile, Net Foreign Assets (NFA) declined by K18.4 billion (US$23.3 million) to K251.6 billion (US$343.6 million) in the month. 3.2.1 Net Domestic Assets The banking system created NDA amounting to K56.7 billion in the month, hence the outstanding stock of NDA stood at K916.7 billion as at end November 2018. The outturn was entirely on account of domestic credit which rose by K73.4 billion to K1,151.3 billion in the month. In contrast, Other items net (OIN) contracted by K16.7 billion to minus K234.6 billion as at end- November 2018. 3.2.1.1 Domestic Credit Credit to the public sector grew by K71.9 billion to K685.1 billion as at end-november 2018. Similarly, credit to the private sector increased by K1.5 billion to K466.2 billion. 4
i. Credit to the Private Sector Credit to private sector recorded an annual growth of 13.2 percent in November 2018, compared to 10.8 percent in October 2018, and 0.5 percent in November 2017. On a monthly basis, credit to private sector increased marginally by 0.3 percent (K1.5 billion) to K466.2 billion compared to a growth of 3.9 percent (K17.5 billion) in the preceding month and a contraction of 1.8 percent (K7.5 billion) in the corresponding period in 2017. In the review month, foreign currency denominated loans, commercial and industrial loans and mortgages grew by K4.4 billion, K1.3 billion and K1.1 billion to K133.6 billion, K204.8 billion and K41.5 billion, respectively. Meanwhile, household and individual loans slowed down by K732.5 million to K120.8 billion. Further, commercial banks made provisions for loan losses of K4.4 billion during the month, hence total loan loss provisions stood at K34.6 billion as at end-november 2018. In terms of economic sectors, credit expansions amounting to K13.3 billion, K2.5 billion, and K2.5 billion were recorded in Manufacturing; Wholesale and retail trade; and Transport, storage and communications sectors, respectively. Meanwhile, credit to Community, personal and social services; Electricity, gas, water, and energy; Financial services; and Agriculture sectors contracted by K9.5 billion, K3.7 billion, K2.9 billion and K2.6 billion, respectively. In terms of proportions in the outstanding stock of private sector credit, Wholesale and retail trade sector, at 27.9 percent, continued to represent the largest share of private sector credit. Manufacturing; Agriculture; and Community, social and personal services sectors constituted 20.5 percent, 19.6 percent and 10.3 percent of the total outstanding credit stock, respectively. Distribution of credit to the rest of the sectors is as shown in Chart 1 below. 5
Chart 1: Sectoral Composition of Private Sector Credit Source: Reserve Bank of Malawi ii. Credit to the Public Sector The banking system s net credit to the public sector (government and statutory bodies) totaled K685.1 billion as at end November 2018 from K613.2 billion and K489.8 billion in October 2018 and November 2017, respectively. Net credit to government from the Reserve Bank of Malawi increased by K55.4 billion to K381.0 billion in the month. The central bank s advances to government grew by K24.4 billion to K65.9 billion. Furthermore, Treasury note and Treasury bill holdings by RBM rose by K23.5 billion and K10.0 billion to K365.1 billion and K103.3 billion, respectively. Meanwhile, government deposits with the central bank increased by K2.4 billion to K153.3 billion, partly reducing net credit to government from the RBM. Similarly, net credit to government from the commercial banks recorded a monthly upturn of K17.3 billion to K271.6 billion. Commercial banks holding of Treasury bills and Treasury notes increased by K9.3 billion and K2.9 billion to K163.7 billion and K170.1 billion, respectively. Furthermore, government deposits declined by K5.1 billion to K62.2 billion, thereby reinforcing the upturn in net credit to government. Meanwhile, commercial banks outstanding credit to the statutory corporations declined by K814.6 million to K32.5 billion in the month. 6
3.2.2 Net Foreign Assets NFA of the banking system continued on a declining trend and in the month of November 2018 they contracted by US$23.3 million to US$343.6 million. Both NFA of the RBM and commercial banks fell in the month. Specifically, NFA of the RBM declined to US$300.0 million as at end- November 2018 from US$316 million in the preceding month. In the month, RBM utilised a total of US$179.6 million of foreign exchange against total inflows of US$141.7 million. Consequently, gross official reserves declined to US$606.8 million from US$619.9 million. Similar to developments in NFA of the RBM, commercial banks NFA went down by US$7.1 million to US$43.6 million as at end November 2018. This development was explained by a drop in domestic banks balances in banks abroad. In total, the banking system foreign exchange reserves stood at US$724.1 million. 4.0 CENTRAL GOVERNMENT BUDGETARY OPERATIONS Central government budgetary operations for the month of November 2018 closed with a deficit of K54.5 billion, from a deficit of K27.6 billion recorded in October 2018 and a surplus of K3.8 billion in September 2018. In November 2017, budgetary operations registered a deficit of K40.3 billion. Total government revenues amounted to K92.7 billion against total expenditures of K147.2 billion. 4.1 Revenues 1 During the month of November 2018, total government revenues increased by 3.5 percent to K92.7 billion, after it declined by 22.2 percent in the previous month. In November 2017, total government revenues declined by 1.9 percent to K80.1 billion. Domestic revenues amounted to K85.6 billion whilst foreign receipts totalled K7.1 billion (US$9.6 million). The major grants received in the month under review were funds from International Development Association (IDA), a total of K4.5 billion (US$6.1 million) split into K2.7 billion (US$3.7 million) for the Ministry of Finance, and K1.8 billion (US$2.4 million) funds towards the Malawi drought Recovery programme. The remaining K2.6 billion (US$3.5 million) were grants towards various government projects. Total foreign inflows therefore rose marginally by a K1.8 million and remained at the October 2018 total of K7.1 billion. 1 Revenue figures may slightly differ with those reported by the Malawi Revenue Authority as RBM records represent data actually remitted into the consolidated account on a particular transfer date. 7
All component of domestic revenues increased during the reviewed period. Tax collections increased by K683.1 million to K80.4 billion, departmental receipts increased by K2.1 billion to K4.1 billion and other uncategorised government receipts increased by K248.7 million to K1.1 billion. Table 2: Central Government Budgetary Operations (in MK billion) 2017 2018 Nov Dec Feb Mar April May Jun July Aug Sep Oct Nov Total Revenues 80.1 74.7 73.3 82.5 95.4 75.0 99.9 92.0 86.8 115.2 89.6 92.7 Domestic Revenues 69.4 69.6 71.0 77.8 91.9 71.4 86.0 84.2 71.3 104.9 82.5 85.6 Tax Revenue 65.0 66.8 67.0 65.3 77.5 67.0 81.0 78.9 68.4 101.5 79.7 80.4 Non Tax revenue 4.4 2.8 4.0 12.5 14.4 4.4 5.0 5.3 2.8 3.4 2.8 5.2 Departmental 4.1 3.6 12.2 1.4 3.2 4.5 2.6 2.2 2.4 2.0 4.1 receipts 1.9 Other Receipts 0.3 0.9 0.4 0.3 13.0 1.2 0.5 2.7 0.7 1.0 0.8 1.1 Grants 10.7 5.1 2.6 4.7 3.6 4.3 13.9 7.8 15.5 10.3 7.1 7.1 Total Expenditures 120.4 91.5 113.3 108.8 99.1 104.0 101.6 78.4 132.2 111.4 117.2 147.2 Recurrent Expenditure 107.3 74.2 99.4 94.6 82.7 85.8 80.8 65.5 113.7 95.8 100.2 129.5 Interest Payments 13.0 6.4 21.8 27.0 22.0 17.6 9.5 6.1 21.3 24.8 17.3 14.5 Domestic 12.2 5.8 20.7 26.5 17.7 16.9 8.4 5.8 21.3 22.2 14.7 13.8 Foreign 0.7 0.5 1.2 0.4 4.4 0.7 1.1 0.2 0.0 2.6 2.6 0.7 Development 13.1 17.4 13.9 14.2 16.4 18.3 20.8 12.9 18.6 15.6 17.0 17.8 Deficit/Surplus -40.3-6.8-39.6-26.3-3.7 28.3-1.6 13.5-45.5 3.8-23.1-54.5 Financing (net) 47.0 32.8 56.9 34.7 22.4 36.4 8.6 10.1 54.9-1.3 34.8 60.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Foreign 0.0 47.0 56.9 34.7 22.4 36.4 8.6 10.1 54.9 1.3 34.8 60.0 Domestic 32.8 7.9 49.2 4.3-15.7 19.3-66.1-7.2 86.9-30.4 33.5 72.7 Banking System 27.2 Non-Bank Sector 39.1 5.6 7.7 30.4 38.1 17.1 74.8 17.4-31.9 29.1 1.2-12.7 Errors and Omissions 6.7 16.0 17.3 8.4 31.0 5.6 7.0 23.6 22.8-10.8 11.7 5.5 Source: Reserve Bank of Malawi 4.2 Expenditures Total government expenditures in the month of November 2018 incresaed by 25.6 percent to K147.2 billion. This followed another increase in expenditures of 5.6 percent recorded in October 2018. The increase in total expenditures recorded in the reviewed month was mainly attributed to the increase in recurrent expenditures by K29.3 billion to K129.5 billion. Development expenditures recorded a marginal increase of K0.8 billion to K17.8 billion in the month under review. In November 2017, total government expenditure increased by 18.2 percent to K120.4 billion. 8
5.0 PRODUCTION AND PRICES 5.1 Domestic Production 5.1.1 Tea Auction Sales At 1.4 million kilograms, tea production in November 2018 was lower than the October 2018 and November 2017 production of 2.2 million kilograms and 2.1 million kilograms, respectively. Meanwhile, Limbe auction market registered volume sales of 0.5 million kilograms. Average tea price for November 2018 was US$1.78 per kilogram compared to US$1.39 per kilogram in the preceding month and US$1.94 per kilogram fetched in a similar period of 2017. 5.2 Domestic Prices According to statistics released by the National Statistical Office (NSO), inflationary pressures observed since July 2018 continued to mount in November 2018 as headline inflation stood at 10.1 percent, 0.4 percentage points higher than 9.7 percent registered in October 2018, and higher than 7.7 percent registered in November 2017. These pressures were observed in both the food and nonfood prices, which stood at 10.8 percent from 10.4 percent and 9.5 from 9.2 percent, respectively. However, a slowdown in overall Month-on-Month (M-o-M) inflation was observed, registering 1.5 percent, from 1.9 percent in the preceding month and 4.3 percent in November 2017. Reflecting comparatively lower agricultural production for the 2017/18 season, inflationary pressures intensified, threby driving up food inflation by 0.4 percentage points to 10.8 percent in November 2018 from 10.4 percent in October 2018 and 4.7 percent in November 2017. This was largely explained by a rise in maize prices. According to the World Food Programme (WFP), maize prices in November 2018 averaged K136.50 per kilogram, representing a 7.3 percent increase from an average of K127.25 per kilogram sold in October 2018. These developments were also reflected in M-o-M food inflation which increased by 3.1 percent in November 2018, from 2.4 percent registered during the preceding month. Nonetheless, the maize distribution programme by Government to food insecure households will continue to stabilize maize prices. Likewise, non-food inflation picked up in November 2018 to 9.5 percent from 9.2 percent in October 2018 and compared to 11.0 percent in November 2017. The rise in non-food inflation was attributed to second round effects of the upward adjustments in utility tariffs and domestic pump fuel prices effected in the preceding months. The Malawi Energy Regulatory Authority (MERA) recently increased prices of petroleum products by an average of 5 percent in October 2018 and an 9
average of 5.3 percent in November 2018. Similarly, MERA granted ESCOM effected a 20 percent upward adjustment in electricity base tariff, effective October 2018. 6.0 MONEY AND SECURITIES MARKET 6.1 Open Market Operations In November 2018, net Government operations resulted in a net injection of K32.04 billion compared with a net injection of K25.5 billion in the previous month and a net injection of K45.5 billion in November 2017. This was a net result of Government net expenditure position of K33.13 billion and a withdraw of K1.09 billion through net issuances of Government domestic debt securities. In addition, K11.25 billion was injected into the financial market through open market operations. On the other hand, K8.80 billion was withdrawn through net foreign exchange operations in November 2018. Overall, a net of K34.49 billion was injected into the financial market, compared with an injection of K21.9 billion in the previous month and an injection of K58.0 billion in November 2017. Table 3: Financial Market Operations (in billions of Malawi Kwacha) (K bn) July Aug Sep Oct Nov (Net operations supplying liquidity +) 2018 2018 2018 2018 2018 Net Government Operations (+=injection) -16.04 74.70-18.37 25.53 32.04 Net Government Position excluding grants -5.66 55.78 42.35 2.90 33.13 Revenue 84.18 84.59 84.60 104.93 92.28 MRA 78.89 81.73 81.74 88.23 88.31 Non-tax 5.28 2.86 2.86 16.70 3.97 Expenditure 78.52 140.37 126.95 107.83 125.41 Net Government Domestic Borrowing -10.38 18.92-60.72 22.63-1.09 TB/TN/PN issues 60.90 70.44 91.44 27.21 18.56 TB/TN/PN maturity 50.52 89.36 30.72 49.84 17.47 Net Forex Operations 13.20-2.50-12.00-14.00-8.80 Sales 110.80 70.00 74.00 84.00 84.00 Purchases 124.00 67.50 62.00 70.00 75.20 Net OMO 51.57 20.49 54.14 10.43 11.25 Injections 237.00 192.01 241.41 237.90 134.66 RBM bill maturities 0.00 0.00 0.00 0.00 0.00 Maturity of 3-YR RBM bond 0.00 0.00 0.00 0.00 0.00 Purchase of securities 0.00 0.00 0.00 26.15 41.91 Maturity of OMO T-bills 0.00 0.00 0.00 0.00 0.00 Maturing Deposits on Deposit Facility 0.00 0.00 0.00 0.00 0.00 Access on the Lombard Facility 127.00 145.49 153.03 154.74 48.10 Repo maturities 110.00 46.52 88.38 57.01 44.65 Withdrawals 185.43 171.52 187.27 227.47 123.41 RBM bill issues 0.00 0.00 0.00 0.00 0.00 Issue of Monetary Policy TBs 0.00 0.00 0.00 35.96 36.00 Issue of RBM bond 0.00 0.00 0.00 0.00 0.00 10
Deposits on Deposit Facility 0.00 0.00 0.00 0.00 0.00 Sale of securities 14.73 0.00 0.00 0.00 0.00 Maturing Access on the Lombard Facility 132.96 156.34 144.75 158.93 55.99 Repos 37.74 15.18 42.52 32.58 31.42 Net Operations 48.73 92.69 23.77 21.96 34.49 Reserve Money Estimate: 307.82 317.93 300.12 292.70 314.85 Currency in Circulation 228.32 227.66 220.81 213.35 214.74 Bankers Deposits 79.49 90.26 79.31 79.35 100.11 Reserve Money Target Reserve Money Over (+)/Under (-) Performance 299.00 8.82 299.00 18.93 326.00 25.88 326.00 33.30 326.00 11.15 Source: Reserve Bank of Malawi 6.2 Government Securities Market 6.2.1 Treasury Bills Primary Market The primary market of Treasury Bills in November 2018 saw a total subscription of K68.4 billion, up from K26.6 billion in the previous month and higher than total subscription of K21.2 billion recorded in November 2017. The 182-day tenor was the most preferred tenor compared to the other tenors as it received 49.1 percent of the total subscriptions. This was followed by the 364-day tenor which was subscribed with 33.9 percent of the total subscription while the 91-day tenor received 17.0 percent of the total subscription. Of the total subscription recorded in the month under review, K21.8 billion was allotted, reflecting a 31.9 percent allotment. The highest allotment was made on the long dated end of the market to the tune of K12.4 billion, being 57.1 percent of the total allotment. This was followed by the 182-day tenor which was allotted with K8.2 billion, representing 37.8 percent of the total allotment in the reviewed month. The short end of the market was allotted with K1.1 billion, which was 5.1 percent of the total allotment. In addition to the Treasury bills allotted in the primary market, a total amount of K10.7 billion worth of Treasury bills was converted from ways and means advances. Consequently, total issuance of Treasury bills in the review month amounted to K32.5 billion. On the other hand, total maturities of Treasury bills in the review month stood at K28.1 billion, all of which were normal Treasury bills as there were no maturities from ways and means conversions. In view of the aforementioned, transactions on the Treasury bills market culminated into a net issuance of K4.3 billion. As such, the stock of Treasury bills closed the month of November 2018 at K565.8 billion compared to its opening balance of K561.5 billion. 11
Table 4: Treasury Bills Issuance and Maturity Total Subscription Issues Normal TB from Conversion Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 53.63 77.79 80.46 62.37 36.71 75.02 90.14 53.13 16.26 68.41 109.17 77.79 80.46 109.37 88.42 66.74 78.06 35.29 16.26 32.48 47.08 77.79 80.46 57.36 34.88 66.74 78.06 35.29 16.26 21.81 62.09 0.00 0.00 52.01 53.54 0.00 0.00 0.00 0.00 10.67 Maturities 62.06 52.60 26.95 95.83 44.06 44.39 23.32 20.19 38.45 28.14 Normal 27.76 52.60 26.95 33.74 44.06 44.39 23.32 20.19 38.45 28.14 TB from Conversion 34.30 0.00 0.00 62.09 0.00 0.00 0.00 0.00 0.00 0.00 47.11 25.19 53.50 13.54 44.36 22.35 54.74 15.09 16.26 4.35 Net Issues (+)/ maturities(-) T-Bill stock at Face Value 359.44 384.63 438.14 446.95 491.31 513.66 568.40 583.49 561.48 565.82 Memorandum Items: Conversions 62.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 T-Bill stock at Cost Value 310.88 337.23 386.75 391.77 431.82 453.58 522.80 516.80 496.07 499.73 Source: Reserve Bank of Malawi 6.2.2 Treasury Bills Yields Average yields across all tenors decreased during the reviewed month. The average yield for the 91- day tenor registered the largest decrease of 1.62 percentage points to 12.28 percent from 13.90 percent in the previous month. The average yield for the 182-day tenor declined to 14.13 percent from 14.48 percent in October 2018. On the other hand, the average yield for the 364-day tenor declined to 14.50 percent from 15.00 percent in the preceding month. Consequently, the All Type Treasury Bill yield declined to 13.63 percent from 14.46 percent. Chart 2: Treasury Bills Yields Source: Reserve Bank of Malawi 12
6.2.3 Treasury Notes Market Total issues for Treasury Notes in the primary market amounted to K11.0 billion. In addition, a total of K20.0 billion ways and means advances, were converted into Treasury Notes in the reviewed month. On the other hand, there were no Treasury Note maturities in the month under review. Consequently, the stock of Treasury Notes closed the month of November 2018 at K955.3 billion compared to the stock of K924.3 billion recorded at the end of the previous month. 6.3 Inter-bank Money Market Banking system liquidity increased in November 2018 compared to October 2018. The daily average excess reserves for November 2018 closed at K10.48 billion compared to K5.18 billion that was recorded during the preceding month and K6.71 billion in November 2017. However, both access on the Lombard Facility and interbank market trading volume decreased significantly, to daily averages of K2.73 billion and K7.72 billion in November 2018 from K7.04 billion and K8.22 billion in October 2018, respectively. Due to the loose liquidity condition alluded above, the interbank market rate (IBR) marginally decreased to 14.84 percent at the end of November 2018 compared to 15.02 percent that was recorded at the end of October 2018. Table 5: Banking System Liquidity (K bn) June July Aug Sep Oct Nov 2018 2018 2018 2018 2018 2018 Daily Average Total Reserves 81.29 88.16 87.84 83.96 83.10 88.10 Daily Average Required Reserves 75.87 77.26 77.01 77.29 77.92 77.70 Daily Average Excess Reserves 5.42 10.90 10.83 6.67 5.18 10.48 Daily Average Un-borrowed Excess Reserves -0.66 3.16 3.17-3.53-1.86 7.75 Daily Average Inter-bank Market Trading 7.43 6.50 9.16 8.40 8.22 7.72 Daily Average Lombard Facility Access 6.08 7.74 7.66 10.20 7.04 2.73 Inter-bank Market Rate (End Period, Percentage) 16.23 14.90 13.44 14.45 15.02 14.84 Source: Reserve Bank of Malawi 6.4 Interest Rates The Policy rate remained at 16.0 percent in the month. Similarly, commercial banks left their interest rate structure unchanged, with the average base lending rate and the average savings rate at previous month s positions of 24.78 percent and 8.39 percent, respectively. 13
Table 6: Interest Rate Structure 2018 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Policy Rate 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 Base Rate 24.78 24.78 24.78 24.78 24.78 24.78 24.78 24.78 24.78 24.78 3-mon Fixed Rate Savings Rate Interbank Rate Minimum 8.13 8.13 8.13 8.13 8.13 8.13 8.13 8.13 8.13 8.13 8.39 8.39 8.39 8.39 8.39 8.39 8.39 8.39 8.39 8.39 13.56 13.60 13.60 14.36 14.27 12.78 13.44 13.48 14.72 14.77 Maximum 17.03 14.15 14.31 15.94 16.23 15.46 15.67 15.14 15.27 15.04 All Type Treasury bill Yield 1 14.49 14.50 14.50 14.50 14.53 14.52 14.45 14.51 14.53 13.25 91 Days 13.98 14.00 14.00 14.00 14.10 14.06 13.85 13.97 14.00 11.98 182 Days 14.50 14.50 14.50 14.50 14.50 14.50 14.50 14.57 14.60 14.00 364 Days 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 13.76 Mortgage (min) 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 Source: Reserve Bank of Malawi 7.0 CAPITAL MARKETS 7.1 Stock Market 7.1.1 Primay Market The primary market remained dormant as there was no listing during the reviewed period. The number of listed companies therefore remained at 13. 7.1.2 Secondary Stock Market The secondary stock market recorded an increase in both value of shares traded and number of shares traded during the month under review. A total of 109.80 million shares earning K8,429.68 million traded compared to 46.49 million shares earning K5,845.80 million in the previous month, and 14.4 million shares earning K763.6 million in November 2018. This development represented a 136.21 percent increase in volume of share trades and a 44.20 percent increase in turnover. The increase in activity and turnover during the reviewed period was largely due to large volume transactions on Telekom Networks plc counter. The share volume and value increased compared to the corresponding month of the previous year in which 14.40 million shares changed hands at a total consideration of K763.57 million. The Malawi All Share Index (MASI) lost 3,818.56 points and closed off the month at 26,803.80 points resulting in a monthly return on index of 12.47 percent. The decline in MASI resulted from a decline in both the Domestic Share Index (DSI) and the Foreign Share Index (FSI). The DSI closed lower at 20,772.39 points in November 2018 from 20,938.61 points in October 2018 while the FSI closed lower at 3,778.77 points from 7,196.88 points. The decline in DSI was on account of 14
share price losses on MPICO plc (MPICO), Illovo Sugar Malawi plc (ILLOVO), NICO Holdings plc (NICO) and Telekom Networks Malawi plc (TNM) counters despite share price gains on Blantyre Hotels plc (BHL), National Bank of Malawi plc (NBM), NBS Bank plc (NBS) National Investment Trust plc (NITL) and Press Corportaion plc (PCL) counters. The decline in FSI was on account of a share price loss on FMB Capital Holdings plc (FMBCH) counter. Chart 3: Trends in DSI, FSI and MASI Source: Malawi Stock Exchange Total market capitalisation closed lower at K1.2 trillion in November 2018 from K1.4 trillion recorded in the previous month, and compared with K10.5 trillion recorded in November 2017 The decline was due to the share price losses on four domestic counters and one foreign counter despite share price gains on five domestic counters. Domestic market capitalisation closed lower at K1,009.90 billion during the reviewed period from K1,017.98 billion in the previous period. The decline was on account of the share price losses on the domestic counters. On the other hand, foreign market capitalisation declined to K178.18 billion from K339.36 billion on account of the share price loss on one foreign counter. In dollar terms, total market capitalisation stood at US$1.63 billion during the period under review compared to US$1.86 billion in the previous review period and US$10.5 billion in November 2017. In the corresponding period of 2017, total market capitalisation stood at US$14.37 billion. The decline in total market capitalisation between the two periods was due to delisting of Old Mutual plc (OML) on 29th June 2018, which had a market capitalisation of US$9.51 billion in November 2017. 15
Chart 4: Total Market Capitalization Source: Malawi Stock Exchange 7.2 Debt Market There was no secondary market trade during the review period. The total number of debt instruments on the market remained at four, one corporate instrument and three treasury notes. 16
APPENDIX Real Sector Table 7: Selected Economic Indicators (in billions of Malawi kwacha unless otherwise stated) 2012 2013 2014 2015 2016 2017 2017 Nov 2018 Nov Population (million) 14.8 15.3 15.8 16.3 16.8 17.4 17.4 17.9 GDP at current market prices 1,425.2 1,924.1 2,534.5 3,212.7 3,812.6 4,631.9 4,635.6 5,270.0 Real GDP growth (percent) 2.1 6.3 6.2 3.3 2.7 5.1 5.2 4.0 GDP per capita (K 000) 102.5 133.6 160.4 197.1 226.9 266.6 266.8 293.9 GDP per capita (US$) 411.6 361.9 378.0 394.5 318.1 365.1 108.3 109.2 Consumer Price Index (CPI) 2 403.4 127.3 157.6 192.0 233.7 260.7 269.0 108.7 Average annual inflation rate (percent) 21.3 27.3 23.8 21.9 21.7 11.5 7.7 10.1 Fiscal Sector Total Revenue 363.3 476.4 535.9 661.3 810.0 946.6 80.1 92.7 Domestic Revenues 265.2 373.0 483.0 614.2 742.0 858.7 69.4 85.6 Grants 97.9 103.4 52.9 47.1 67.0 87.9 10.7 7.1 Total expenditure 388.6 539.3 593.1 762.7 964.3 1,136.1 120.4 147.2 Recurrent 349.8 459.9 534.4 667.2 832.5 973.1 107.3 129.5 Development 72.1 79.4 58.7 95.5 131.8 163.0 13.1 17.8 Deficit/GDP ratio (after grants) -6.5-3.4-2.6-3.2-4.0-4.1-0.5 1.0 Monetary Sector Net Foreign Assets 31.9 134.2 241.6 339.5 355.8 455.7 457.4 251.6 Net Domestic Credit 369.6 452.4 458.2 604.4 755.0 937.8 901.7 1,151.3 Government 140.6 184.1 153.4 209.0 337.5 519.9 484.4 652.6 Statutory bodies 19.4 17.8 4.3 5.1 9.2 8.1 5.4 32.5 Private (gross) 220.1 250.4 300.5 390.3 408.3 409.8 411.9 466.2 Money Supply (M2) 386.5 522.0 629.8 778.8 897.3 1,074.4 1,035.9 1,168.4 M2 Growth Rate (annual percent) 22.9 35.1 20.7 23.7 15.2 19.7 19.1 12.8 Reserve Money 113.2 156.9 212.3 206.0 240.6 278.9 260.9 314.9 Banks Deposits 42.2 61.6 92.4 66.0 56.2 78.2 75.9 100.1 External Sector Overall Balance 6.3 68.6 76.3 45.1-48.0 43.9.... Current Account -208.9-449.1-482.1-411.5-532.4-555.4..... Exports (fob ) 313.8 472.0 641.9 562.0 754.0 694.5 71.2.. Imports (fob) 584.5 1002.5 1140.6 1105.1 1537.0 1807.7 172.0.. Trade balance -270.7-530.5-498.7-543.1-783.0-1113.2-100.8.. Capital account balance 89.6 222.7 194.1 114.0 171.6 219.1.... Gross foreign exchange reserves 139.1 278.4 389.6 549.2 586.7 586.7 730.7 530.3 Official 72.2 173.0 276.6 445.3 438.6 438.6 545.6 444.5 Commercial banks 66.9 105.4 113.0 103.9 148.1 148.1 185.1 85.9 Import cover (Official reserves in months) 1.1 2.1 3.1 3.2 2.9 2.9 3.6 2.9 Current account balance/gdp (percent) -19.0-27.6-19.7-16.9-20.5-24.0.... Debt/GDP (percent) 28.9 34.1 33.6 33.0 35.0 44.4.... Debt Service/Exports (percent) 1.2 2.5 3.4 3.8 4.1 5.4.... MK/US Dollar (eop) 335.127 435.229 435.229 664.365 725.01 730.46 732.25 733.20 MK/US Dollar (pd avg) 330.457 369.181 369.181 499.607 713.85 726.65 730.49 735.10 Source: Reserve Bank of Malawi 2 2000=100 for the years 2007-2009 and 2012; 2010= 100 for the years 2010, 2011 and 2013. 17
Table 8: Year on year Inflation (2012=100, 2017=100) All items Food & Non-alcoholic Non-food inflation 2015 21.9 23.9 20.0 2016 21.7 26.6 17.1 2017 11.5 10.3 12.8 2015 Jan 21.2 21.5 20.8 Feb 19.7 19.0 20.4 Mar 18.2 17.0 19.3 Apr 18.8 18.1 19.5 May 19.5 21.4 17.8 June 21.3 24.2 18.8 July 22.2 25.3 19.6 Aug 23.0 26.8 19.9 Sept 24.1 27.3 21.3 Oct 24.7 28.3 21.4 Nov 24.6 28.9 20.6 Dec 24.9 29.2 20.7 2016 Jan 23.5 28.4 18.5 Feb 23.4 28.6 17.9 Mar 22.1 26.5 17.8 Apr 20.9 24.3 17.7 May 21.5 25..7 17.6 June 22.6 27.7 18.2 July 23.5 29.2 18.7 Aug 22.8 28.7 17.8 Sept 21.2 27.0 15.9 Oct 20.1 25.4 15.2 Nov 19.9 24.8 15.2 Dec 20.0 24.4 15.4 2017 Jan 18.2 21.1 15.0 Feb 16.1 17.5 14.6 Mar 15.8 17.0 14.5 Apr 14.6 14.7 14.5 May 12.3 11.2 13.5 Jun 11.3 9.3. 13.2 Jul 10.2 7.4 12.7 Aug 9.3 6.2 12.2 Sept 8.4 5.1 11.6 Oct 8.3 4.8 11.7 Nov 7.7 4.7 11.0 Dec 7.1 4.3 10.0 2018 Jan 3 8.1 7.6 9.6 Feb 7.8 7.3 9.4 Mar 9.9 10.6 9.7 Apr 9.7 10.0 8.9 May 8.9 9.5 8.4 Jun 8.6 9.1 8.2 Jul 9.0 9.5 8.7 Aug 9.3 10.1 8.7 Sep 9.5 10.2 8.9 Oct 9.7 10.4 9.2 Nov 10.1 10.8 9.5 Source: National Statistical Office 3 From Jan 2018 base year is 2017 (i.e. 2017=100) 18
Table 9: National Consumer Price Indices (2012=100, 2017=100) All items Food & Nonalcoholic Alcoholic drinks & Tobacco Clothing & Footwear Housing, water & electricit y Furnishing & Household Health Transp ortation Commu nication Recreation & Culture Education Restauran ts & Hotels Miscellan eous Weight 100 50.2 2.4 5.9 12.6 3.0 1.3 11.7 3.6 1.2 3.0 1.3 3.9 2015 192.0 185.1 156.7 174.4 241.9 192.1 159.6 176.1 183.9 223.4 169.1 262.0 158.2 2016 233.7 234.4 181.3 199.1 294.1 225.7 184.4 201.2 195.9 268.8 205.6 297.6 176.0 2017 260.7 258.4 209.3 224.6 346.2 246.7 225.3 211.9 205.1 321.9 224.5 329.9 191.9 2016 Jan 229.2 237.3 160.6 186.7 280.8 212.7 167.5 191.8 189.2 242.0 198.5 279.1 168.8 Feb 238.6 250.8 166.8 190.4 288.2 216.8 171.9 195.5 196.1 258.0 198.5 284.3 169.7 Mar 232.5 237.8 170.4 191.7 288.5 218.9 172.6 196.6 196.6 258.2 198.5 285.2 171.5 Apr 226.6 224.6 172.5 193.1 289.6 222.0 176.3 200.1 196.5 258.5 198.5 287.5 173.3 May 226.0 222.5 174.0 195.2 290.3 224.0 178.4 200.6 196.5 260.3 198.5 289.7 174.3 June 222.9 214.6 181.1 197.0 290.8 226.5 180.5 202.3 196.6 268.2 198.5 294.0 174.6 Jul 221.1 209.8 184.2 200.2 291.8 227.9 184.6 202.5 196.6 271.4 198.5 295.9 175.7 Aug 223.9 214.1 188.4 201.4 292.7 229.4 190.3 203.4 196.6 271.8 198.3 307.7 177.6 Sept 234.4 232.3 190.7 202.4 293.4 230.1 191.4 203.8 196.6 275.1 219.7 309.5 178.8 Oct 238.3 238.9 192.6 206.7 294.5 231.1 195.3 204.4 196.6 275.9 219.7 310.8 181.4 Nov 249.7 256.5 194.4 211.6 306.9 233.8 198.7 206.2 196.6 282.0 219.8 311.8 182.3 Dec 261.4 273.4 199.7 213.2 322.1 235.4 205.6 207.6 196.6 304.4 219.8 315.5 183.6 2017 Jan 270.7 287.3 200.4 217.3 332.7 237.7 211.9 208.1 198.0 308.8 220.5 317.6 187.0 Feb 277.1 294.8 201.2 219.1 348.0 239.9 212.4 208.5 198.0 315.0 220.5 319.4 188.9 Mar 269.3 278.3 201.6 220.1 348.2 240.6 217.4 209.4 198.0 321.0 220.5 320.1 190.0 Apr 259.7 257.6 201.6 221.1 348.4 243.2 219.5 210.2 205.3 321.2 222.0 320.3 191.0 May 253.9 247.4 202.9 222.8 341.9 243.8 220.9 210.8 205.3 321.4 222.0 330.8 192.3 Jun 248.1 234.4 209.0 225.4 342.2 246.3 229.7 212.0 205.3 322.7 222.0 332.5 193.0 Jul 243.6 225.4 210.9 226.6 340.3 249.8 230.3 212.3 205.3 323.7 222.0 333.1 192.8 Aug 244.8 227.4 211.2 227.4 340.3 250.5 230.5 213.8 205.3 324.0 222.0 333.9 193.3 Sept 254.2 244.3 216.9 228.3 340.4 251.0 231.0 214.2 210.1 324.0 230.6 334.0 193.2 Oct 258.0 250.4 217.2 228.6 344.5 251.9 231.7 214.4 210.1 325.8 230.6 338.0 193.7 Nov 269.0 268.5 218.5 229.2 355.8 252.6 234.3 214.5 210.1 327.4 230.6 338.8 193.9 Dec 279.9 285.2 219.7 229.4 372.0 253.3 234.3 214.7 210.1 327.4 230.6 340.8 194.0 2018 Jan 4 104.5 108.4 100.0 100.1 103.0 100.1 100.5 100.2 100.0 100.4 100.0 100.4 100.4 Feb 106.8 110.9 101.3 102.4 105.5 102.5 101.6 102.1 101.0 101.7 100.0 101.9 102.4 Mar 105.8 107.9 103.5 103.6 106.2 102.9 102.1 102.6 101.1 101.8 100.2 102.2 103.6 Apr 101.8 99.3 104.1 104.0 105.6 103.0 102.5 102.7 101.1 102.1 100.2 102.3 103.8 May 101.2 97.7 104.8 104.5 105.6 103.3 102.8 103.1 101.8 102.8 100.2 10.3.0 104.1 Jun 101.0 96.5 106.3 104.7 105.7 104.3 103.3 104.5 101.9 103.5 100.2 103.5 104.9 Jul 101.6 97.5 107.0 105.2 105.7 105.1 103.3 105.8 101.9 103.6 100.2 103.8 105.3 Aug 103.0 100.1 107.9 106.3 105.9 106.0 104.2 106.4 102.3 104.4 100.2 104.0 107.4 Sep 105.1 103.7 108.3 107.8 106.0 107.6 106.8 107.2 103.0 105.1 101.5 105.4 109.4 Oct 107.1 106.2 108.7 108.7 108.5 108.3 107.4 108.7 103.3 105.4 102.5 105.7 110.0 Nov 108.7 109.4 109.1 109.2 108.5 108.5 108.3 109.5 103.3 105.8 103.1 105.8 110.2 Source: National Statistical Office 4 From Jan 2018 base year is 2017 (i.e. 2017=100) 19
Table 10: Selected Exchange Rates US dollar Euro British pound Japanese yen SA rand ZMK Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell 2015 490.519 508.693 543.982 564.100 748.718 776.460 4.208 4.139 38.303 39.764 58.191 60.503 2016 704.898 722.806 779.096 798.800 954.603 979.848 6.498 6.663 48.104 49.321 68.466 70.199 2017 727.928 733.447 819.526 834.266 935.918 953.000 6.398 6.559 53.794 55.267 75.296 77.042 2015 Jan 439.266 469.247 497.249 531.188 661.840 707.015 3.714 3.967 38.016 40.612 67.684 72.303 Feb 427.057 447.650 462.085 484.369 639.114 669.938 3.547 3.718 35.339 37.043 61.550 64.590 Apr 430.152 448.896 463.557 483.753 632.678 660.208 3.599 3.756 35.827 37.388 58.166 60.698 May 430.280 448.985 479.983 500.855 664.743 693.639 3.564 3.719 35.975 37.539 59.061 61.627 Jun 428.129 446.334 480.426 499.036 666.314 694.652 3.461 3.608 34.829 36.312 58.463 60.950 Jul 458.112 480.430 504.173 528.729 712.848 747.560 3.717 3.899 36.806 38.602 59.800 62.713 Aug 551.507 564.452 616.420 630.888 849.101 869.031 4.534 4.640 41.468 42.441 64.203 65.710 Sept 554.563 567.806 623.164 638.048 850.969 871.293 4.616 4.726 40.722 41.694 55.302 56.621 Oct 546.158 558.865 612.276 626.896 835.620 855.565 4.542 4.745 40.383 41.347 45.316 46.398 Nov 573.804 588.287 616.625 632.188 872.797 894.826 6.576 6.742 40.647 41.673 47.023 48.210 Dec 628.551 644.416 683.866 701.127 942.858 966.655 5.160 5.290 42.012 43.072 58.100 59.567 2016 Jan 689.273 707.802 735.692 754.318 994.826 1020.01 5.842 5.990 42.216 43.284 62.063 63.634 Feb 733.310 751.496 814.174 834.368 1050.36 1076.41 6.379 6.537 46.563 47.718 64.740 66.346 Mar 676.070 694.295 766.535 787.199 954.023 993.090 6.156 6.321 46.244 47.491 69.387 71.256 April 676.069 694.295 766.534 787.199 954.023 993.090 6.322 6.239 46.244 47.490 71.256 70.321 May 691.907 708.911 781.808 801.144 1006.07 1030.95 6.346 6.504 45.074 46.189 68.885 70.589 June 702.361 718.710 788.202 806.547 996.913 1020.12 6.675 6.830 46.445 47.526 65.451 66.975 July 707.082 725.022 782.366 802.215 932.749 956.413 6.776 6.947 49.128 50.375 71.436 73.249 Aug 711.599 729.887 797.475 817.970 932.851 956.826 7.024 7.205 51.748 53.078 70.656 72.472 Sept 712.351 730.113 798.610 818.523 937.345 960.718 6.987 7.161 50.691 51.955 71.480 73.262 Oct 712.296 730.153 785.775 805.475 880.354 902.425 6.864 7.036 51.178 52.461 71.929 73.732 Nov 716.301 733.994 761.643 780.457 894.159 916.246 6.355 6.512 51.462 52.733 72.500 74.291 Dec 715.802 734.216 753.882 773.277 879.076 901.692 6.130 6.287 52.606 53.960 72.786 74.658 2017 Jan 725.4263 733.7676 773.148 786.0787 908.281 921.0467 6.3112 6.4723 53.232 54.6379 72.3917 72.392 Feb 727.5507 734.1088 766.153 776.6298 899.648 914.2061 6.3855 6.5432 55.685 56.7389 75.4237 77.287 Mar 730.4553 733.5409 770.795 785.4901 899.134 910.3683 6.4025 6.5593 52.618 54.7542 74.3031 76.123 Apr 727.9241 733.7879 785.475 799.8573 931.334 950.6818 6.4594 6.6097 54.770 55.3697 76.4916 78.271 May 726.3399 734.1363 809.439 822.4890 927.763 942.5229 6.4665 6.6195 55.263 56.0864 77.5978 79.435 Jun 725.0088 732.0193 821.648 841.2921 937.907 958.2446 6.3984 6.5630 55.475 56.3497 77.8513 79.854 Jul 728.5534 732.5427 853.031 863.8501 947.279 968.0404 6.4782 6.6474 55.710 56.5157 80.6576 82.766 Aug 730.6206 733.5961 850.556 872.7486 936.025 951.9495 6.4797 6.6478 55.749 56.4610 78.5632 80.601 Sept 729.5337 733.7183 854.065 866.2215 967.268 987.7027 6.3596 6.5245 53.274 54.4250 73.9317 75.849 Oct 728.5009 733.5496 850.088 863.9010 953.606 971.9396 6.3397 6.5040 50.168 53.7386 73.4311 75.335 Nov 728.0260 733.3131 845.541 862.6286 954.842 971.9675 6.3491 6.5121 48.949 52.2226 71.6653 73.505 Dec 727.1969 733.2882 854.369 870.0076 967.933 987.3355 6.3436 6.5073 54.632 55.9053 71.2446 73.084 2018 Jan 728.9951 728.9951 892.879 909.2079 1032.505 1045.149 6.6432 6.8167 60.972 62.3169 73.1576 75.068 Feb 728.9951 733.9883 892.879 909.2079 1009.673 1028.418 6.6432 6.8167 60.972 62.3169 73.1576 75.068 Mar 729.2749 734.0041 891.443 906.8581 1012.079 1027.823 6.7283 6.9041 61.015 62.1451 73.7581 75.686 Apr 728.1048 734.0041 888.479 902.4094 1019.501 1037.185 6.6576 6.8315 56.673 60.8671 74.9081 76.865 May 727.5470 733.7890 855.950 868.8107 974.5222 991.1914 6.5335 6.7016 57.772 58.7413 71.1325 72.963 Jun 728.0604 733.9090 845.839 858.0462 961.6660 977.2435 6.5143 6.6838 54.484 55.5793 71.1643 73.016 Jul 727.3232 733.3667 845.584 858.6567 954.3714 968.4412 6.4311 6.5962 53.924 54.9482 72.3716 74.229 Aug 728.1124 733.6978 834.501 849.1749 933.4997 947.8666 6.4562 6.6176 51.537 52.4571 71.2285 73.009 Sept 729.9201 734.3306 843.875 859.3031 945.5432 961.2828 6.4101 6.5689 46.710 50.1441 66.2171 67.857 Oct 733.0060 737.3367 837.572 847.4056 946.6074 960.7914 6.3737 6.5329 50.059 51.1523 60.3713 61.879 Nov 731.8369 738.3561 827.827 842.6638 948.9649 965.5449 6.3541 6.5149 51.048 52.7414 61.3951 62.949 Source: Reserve Bank of Malawi 1 Averages of daily rates quoted by the Reserve Bank for dealing with commercial banks in Malawi 20
Table 11: Malawi All Share Indices (1999=100) Period INDICES RETURN SHARE TURNOVER CAPITALISATION Domestic Share Index Foreign Share Index All share Index Dividend Yield Earnings per Share (Kwacha) Volume of shares traded Value (Malawi Kwacha) Value of shares issued (Malawi Kwacha) 2015 11,462.9 1,762.1 14,562.5 4.0 28.4 2,355,317,369 48,592,086,538.8 7,522,117.1 2016 10,456.9 2,026.1 13,320.5 5.2 42.8 410,895,390 6,196,059,036.9 8,516,542.4 2017 16,272.6 3,519.4 21,598.1 2.7 32.4 698,894,283 13,516,146,248.3 10,609,490.8 2015 Jan 11,765.26 1,762.13 14,942.70 3.7 33.1 13,253,003 306,518,657.27 7,510,896.21 Feb 11,787.78 1,762.13 14,971.01 3.7 33.1 7,495,950 139,872,357.88 7,512,105.86 Mar 12,100.77 1,762.13 15,364.50 3.7 33.3 19,690,879 229,078,353.13 7,528,915.58 Apr 12,625.84 1,762.13 16,024.62 3.7 33.4 1,606,464,275 31,210,863,821.43 7,557,116.24 May 12,718.82 1,762.13 16,141.51 4.0 28.4 79,174,433 906,650,079.35 7,589,570.41 Jun 12,615.53 1,762.13 16,011.65 4.0 28.4 16,582,284 289,322,167.98 7,584,023.99 Jul 12,651.59 1,762.13 16,056.99 4.0 28.4 14,086,929 202,182,349.16 7,585,960.96 Aug 12,485.98 1,762.13 15,848.78 4.0 28.4 144,070,611 1,704,768,088.43 7,577,066.34 Sept 12,466.81 1,762.13 15,824.68 4.0 28.4 157,121,402 5,166,414,357.76 7,576,036.66 Oct 12,075.48 1,762.13 15,332.70 4.0 28.4 14,725,375 308,215,195.79 Nov 11,708.68 1,762.13 14,871.56 4.0 28.4 14,731,935 195,400,081.04 Dec 11,462.87 1,762.13 14,562.53 4.0 28.4 267,920,293 7,932,801,029.60 2016 7,555,019.31 7,535,319.04 7,522,117.08 Jan 11,365.60 1,762.13 14,440.24 4.0 28.4 2,795,087 99,852,436.20 7,516,892.89 Feb 11,225.08 1,762.13 14,263.58 4.0 28.3 1,830,916 106,507,786.33 7,509,345.98 Mar 10,554.04 1,762.13 13,419.95 6.1 45.7 5,067,001 89,521,602.30 7,473,305.73 Apr 10.109.50 1,762.13 12,861.07 6.0 45.7 54,962,804 528,512,298.00 7,448,932.42 May 10,072.19 1,762.13 12,814.18 6.0 45.0 30,578,347 302,536,644.07 7,446,930.72 Jun 10,320.33 1,762.13 13,126.13 5.9 45.0 5,499,723 160,580,210.34 7,460,245.29 Jul 10,523.46 1,762.13 13,381.50 5.9 45.0 9,822,509 79,415,164.70 7,471,145.06 Aug 10,424.86 1,762.13 13,174.36 5.9 45.0 42,384,723 985,792,369.78 7,462,303.95 Sept 10,793.84 2,026.07 13,744.12 5.2 45.0 29,146,377 520,695,844.27 8,525,541.22 Oct 10,824.35 2,026.07 13,782.48 5.2 45.0 2,601,165 331,416,056.34 8,527,178.17 Nov 10,103.29 2,026.07 12,875.85 5.2 45.8 38,318,065 1,385,112,183.47 8,497,260.46 Dec 10,456.92 2,026.07 13,320.51 5.2 42.8 187,888,673 1,606,116,441.14 8,516,542.43 2017 Jan 10,303.61 2,026.07 13,127.73 5.2 42.8 9,462,616 299,523,065.19 8,508,182.95 Feb 10,707.55 2,026.07 13,635.67 5.2 42.8 12,896,314 179,654,629.77 8,530,208.72 Mar 11,437.62 2,308.87 14,577.62 4.6 43.3 15,057,251 248,460,512.40 9,679,155.09 April 11,935.73 2,308.87 15,203.97 4.6 43.5 10,160,058 788,100,892.16 9,706,315.56 May 12,228.65 2,325.21 15,573.68 4.6 43.5 71,859,658 1,343,060,713.98 9,786,371.11 June 12,386.77 2,325.21 15,772.51 2.9 35.39 24,562,635 1,065,495,688.62 9,794,992.97 July 13,265.14 2,325.21 16,877.16 2.9 32.38 230,820,088 1,759,096,772.00 9,856,500.67 Aug 15,780.73 2,425.75 20,049.44 2.8 32.38 43,516,315 1,587,733,421.39 10,390,610.09 Sept 15,687.31 2,425.75 19,920.42 2.7 30.00 83,482,149 1,325,916,804.33 10,488,063.79 Oct 15,760.94 2,474.85 20,049.06 2.7 30.00 60,346,580 2,108,221,256.74 10,494,708.34 Nov 15,850.21 3,516.49 21,122.43 2.7 30.00 14,395,164 763,567,556.43 10,547,692.73 Dec 16,272.64 3,519.43 21,598.07 2.7 32.38 122,335,455 2,047,314,935.24 10,609,490.79 2018 Jan 16,692.97 3,673.87 22,223.44 2.7 32.38 36,519,356 1,318,037,153.35 10,661,816.40 Feb 17,535.66 3,706.12 23,182.59 2.6 32.38 245,801,275 7,696,394,315.30 10,827,425.44 Mar 18,009.73 5,197.43 25,286.79 2.3 32.10 39,059,770 1,133,690,674.34 12,435,390.30 Apr 18,158.46 6,743.62 27,092.17 2.3 51.62 80,903,126 3,676,838,010.81 15,654,624.25 May Jun Jul Aug Sep Oct Nov 19,436.22 20,033.47 20,513.69 21,145.76 21,621.84 20,938.61 20,772.39 8,201.57 8,237.82 8,237.32 8,237.32 8,138.23 7,196.88 3,778.77 Source: Malawi Stock Exchange 30,043.03 30,736.95 31,263.14 31,956.43 32,373.19 30,622.36 26,803.80 2.2 1.8 1.7 1.7 1.8 1.8 2.0 50.89 6.66 6.45 6.45 6.45 6.45 6.89 265,730,032 6,468,082 13,787,978 43,722,958 27,090,165 46,485,804 109,803,770 10,613,139,506.1 213,441,483.83 590,259,713.23 3,009,473,246.19 3,758,351,970.38 5,845,797,261.15 8,429,682,349.22 16,006,955.25 1,370,739.23 1,385,750.21 1,416,480.06 1,434,953.37 1,357,347.23 1,188,088.65 21