To buy shares on the Malawi stock exchange is ideal for you if interested in achieving long-term financial benefits. If a person buys shares in a company he/she becomes part of the shareholders of that particular company. And he/she is involved in certain decisions about the business future and gets a share of from the company’s profits.
Individuals or companies with various backgrounds can buy shares on the Malawi stock exchange. The minimum shares a person or institution can buy are 1OO equivalent to K1000. The stock is open to both Malawians as well as foreign investors.
The Malawi stock exchange was opened for business on 11 November 1996 and the first company to sell shares to Malawians was the National Insurance Company. The procedures to buy shares on the Malawi stock exchange are outlined below.
Finding a Stockbroker
The first step when a person wants to buy shares on the Malawi stock exchange is to identify a broker. A broker is a licensed film that buys and sells securities on behalf of investors. It acts as a middleman between the buyer and seller of the stocks. The broker gives professional advice on the best investment options. Stockbrokers charges commission for their services.
Making the Right Investment Decision
The interested investor should make a decision whether to invest in a short term or long term capital appreciation. With the help of the broker, the investor should be able to decide suitable investment option on the stock market. Prices of shares on the Malawi stock exchange are determined by forces of demand and supply.
Buying and Selling securities
The next thing is to decide at what price to buy the shares on the Malawi stock exchange. Knowing what price to buy will enable the buyer to determine how many stocks to buy according to the size of the available capital. Shares can be bought for as low as K1000. However, for a person to make reasonable profits, in the long run, they need to buy a considerable amount of shares.
Saving and Monitoring
Buying stocks is a way of serving funds for future use. Making a regular investment in buying securities helps to accumulate wealth from the profits being made. After successfully buying the shares the investor starts to monitor the performance of the stock market. Regular updates on the Malawi stock exchange are found on the exchange website and in newspapers.
Advantages of buying stock securities
Investing in stocks has several benefits as well as challenges.
Investors’ benefit from stock shares by earning dividends when the company is making profits. Part of the company’s net profit is distributed to shareholders in form of dividends.
Another advantage of investing in the stock market is that the investors’ capital grows with time. As time goes by the price of shares also tend to increase.
Stock shares can be used as bank securities to borrow money.
Listed companies on the Malawi Stock Exchange
Blantyre Hotels (BHL)
FMB Capital Holdings (FMBCH)
Illovo Sugar Malawi (ILLOVO)
MPICO
National Bank of Malawi (NBM)
National Investment Trust (NITL)
NBS Bank (NBSMW)
NICO Holdings (NICO)
Old Mutual (OMU)
Press Corporation (PCL)
Standard Bank Malawi (STANDARD)
Sunbird Tourism (SUNBIRD)
Telekom Networks (TNM)
Faneil Mahatta PhD
Very educative and informative presentation, considering that this type of investment is so closed, and for quite so longtime it has always been the few top brass business gurus only heard participating in the stock exchange market in Malawi.
— Dr Mahatta
Chimwemwe Nuka
Hello Dr Mahatta
Thank you for taking your time to give feedback. So encouraging.
ellis Kumpukwe
I ve been trying to sell my Nico Holdings shares through Cedep since April this year still there are no buyers how do you incourage people to buy shares
Chimwemwe Nuka
Hello Ellis
Thank for visiting and sharing your experience
Harvey
Many thanks to the author, may you plz educate us more. Very much interested, where and how can I get further information?
Hilda
I want.to buy shares now. Which organization is selling and what am I supposed to do?
Chimwemwe Nuka
Dear Hilda
For further details Visit the official site for Malawi stock exchange on https://mse.co.mw/
Thank you for visiting the blog
Albert watch
Am interested to buy shares and I need more information
Chimwemwe Nuka
Hello Albert
Visit the official site for Malawi stock exchange on https://mse.co.mw/
Thank you for visiting the blog
nelson munthali
Am interested to buy shares and I need more information on how to
Chikondi Chikuse
i want to buy shares.please help me out.what should i really do?
Chikondi Chikuse
Hello.after reading the presentation,the first step in investing is to find a stockbroker.how does one find a srockbroker?
Rev. Fr. Santos
I found this article very helpful. Thank you.
Chimwemwe Nuka
Thank you Rev. Santos for finding the article useful.
Richard
How do I find a stock broker?
Kondwani Sibale
Thanks For sharing such informative gospel for passive Financial IQ boost… We here for more
Chimwemwe Nuka
Thank you Kondwani for the feedback
Cheers!
Christopher Loti
Thank you Chimwemwe Nuka for this very important information. I have, for long a time, been searching for this kind of information. At least I know where to start.
Chimwemwe Nuka
Christopher
Thank you for the feedback
Cheers!
Daniel Yankho Nampanda
How do you create a trust funders account
Phalles Thikiwa
Want to sell my shares how do I go about it ?
How can you chose a stockbroker ?
Emmanuel B. G. Nyangatayani
I was looking for a broker in Malawi who can assist in getting where to buy shares. Do you perhaps have a list of brokers.
Robert Kalima
I found this article very helpful and interesting. I now have knowledge on how to invest with MSE. Hoping to invest soon.
Chimwemwe Nuka
Hie Robert
I am glad you found some of the information helpful.
All the best
Samuel Rodger Gama
Hi, I would like to know some stock brokers
Chimwemwe Nuka
Hie
May you Visit the Malawi Exchange website for the list of authorized stock brokers
Esnart Harawa
Thank you so much Chimwemwe,
This is super helpful, been looking for information such as this for quite sometime.
FREEDOM KAFANTAYE
I want to buy shares, how should I do it??
Chimwemwe Nuka
Hie May you contact the Malawi stock exchange or reach out to any of the certified brokers. You will be assisted
Gift Mituka
Thank you for the information because in our country infomation is not easy to come by