Malawi’s Falling Share Prices: What Is Happening and What Can Companies Do?

The recent decline in share prices on the Malawi Stock Exchange (MSE) has left many investors disappointed. After witnessing substantial increases in the prices of several listed companies over the past few years, investors are now asking an important question: Why are Malawi’s shares falling, and what can companies do to restore investor confidence and create long-term shareholder value?

The answer is not straightforward. A falling share price does not necessarily mean that a company is performing badly. Share prices are influenced by company profits, investor expectations, market liquidity, economic conditions, interest rates, dividends and valuation.

As of late September 2026, several major MSE counters were trading below their recent highs, including NBM, FMBCH, Standard Bank, FDH Bank, NBS, NICO, Airtel Malawi, TNM, ICON Properties and MPICO.

Why are Malawi shares falling?

1. Some shares had experienced very large increases

Several MSE-listed companies have delivered extraordinary share-price growth over the years. For example, NBM's listing price was K4, while its recent market price was around K9,129. FMBCH listed at about K45.01 and was recently around K1,800, while FDH Bank listed at K10 and was recently around K468.

Such large increases can eventually lead investors to take profits, resulting in corrections.

A correction, however, should not automatically be interpreted as evidence that a company is failing. Investors need to examine the underlying business.

2. The Malawi Stock Exchange has limited liquidity

One of the major challenges facing the MSE is liquidity.

Some counters do not trade large volumes every day. This means that a relatively small transaction can sometimes have a noticeable effect on the quoted price.

Low liquidity can also discourage potential investors because they may worry about how easily they can sell their shares when they need their money.

Increasing participation by individual Malawians and institutional investors could therefore help create a more active market.

3. Investors have other investment choices

Investors do not only compare one company with another. They also compare shares with bank deposits, government securities, property and other investments.

When alternative investments offer attractive returns with less perceived risk, some investors may decide to reduce their exposure to equities.

4. Valuation matters

A company can be making billions of kwacha in profit and still have a share price that investors consider expensive.

This is why investors should look beyond the share price and examine earnings per share, dividend payments, price-to-earnings ratios, book value, cash flow and future growth prospects.

How are some of the major companies positioned?

National Bank of Malawi

NBM remains one of Malawi's major banking companies. Its 2025 profit after tax was reported at approximately K197.97 billion, compared with K101.71 billion in 2024.

The important question for shareholders is whether the bank can continue growing profits, dividends and its underlying business.

FMBCH

FMBCH is another major banking group on the MSE, with operations extending beyond Malawi.

Investors should watch its earnings growth, dividend payments, regional expansion and the returns generated from those investments.

Standard Bank

Standard Bank is one of the country's major financial institutions.

For shareholders, important indicators include profit growth, return on equity, dividend growth, loan growth and the quality of the bank's loan portfolio.

FDH Bank

FDH has experienced enormous growth in its share price since listing.

However, past share-price performance does not guarantee future performance. Investors should concentrate on future earnings, dividends, digital banking growth, loan quality and the bank's ability to generate sustainable returns.

NBS Bank

NBS has continued to pay dividends and remains an important player in Malawi's banking sector.

Investors should examine its earnings per share, dividend per share, return on equity, non-performing loans and capital position.

NICO Holdings

NICO provides exposure to insurance and other financial businesses.

Its future shareholder value will depend on the performance of its underlying businesses, investment returns, profitability and ability to maintain sustainable dividend growth.

Airtel Malawi

Airtel's business is driven by telecommunications, particularly mobile services and data.

Investors should watch subscriber numbers, data usage, revenue growth, profitability and cash generation.

TNM

TNM faces an increasingly important challenge: investing in infrastructure while ensuring that those investments produce stronger future earnings.

Its investments in areas such as fibre infrastructure and data-centre capacity could potentially support future growth, but investors will ultimately want to see those investments translated into revenue and cash flow.

ICON Properties and MPICO

Property companies require a different type of analysis.

For companies such as ICON and MPICO, investors should look closely at rental income, occupancy rates, property values, debt, cash flow and net asset value.

A property company can report a large accounting profit from property revaluations without generating the same amount of cash.

Therefore, investors should distinguish between fair-value gains and actual cash earnings.

What can companies do to improve shareholder value?

There are several steps that Malawi's listed companies could consider.

1. Maintain sustainable dividends

When companies are profitable and have sufficient cash, consistent dividends can make shares more attractive to investors.

2. Communicate more with shareholders

Companies should provide clear information about their financial performance, major investments, risks, future plans and dividend policies.

Better communication can help investors understand what they are buying.

3. Increase market liquidity

The MSE needs more active participation.

Companies, brokers and market institutions could work together to encourage more Malawians to understand and participate in the stock market.

4. Encourage financial literacy

Many Malawians still have limited knowledge about buying shares, analysing financial statements and understanding dividends.

Greater financial education could increase participation in the market.

5. Concentrate on genuine business growth

Ultimately, the strongest long-term support for a share price is a growing business.

Companies need to focus on increasing revenues, controlling costs, generating cash, growing profits and investing capital wisely.

What should investors do?

For investors, a falling share price can be emotionally difficult. However, investors should avoid making decisions based solely on fear.

Instead, ask:

Is the company still making money?

Are profits growing?

Is the dividend sustainable?

Is the company generating cash?

Does it have manageable debt?

Are its assets valuable?

Does the current share price make sense compared with its earnings and assets?

A falling share price can sometimes represent a deteriorating business, but it can also represent a market correction or changing investor expectations.

Therefore, each company should be analysed individually.

Conclusion

The current weakness in Malawi's share market is disappointing for many investors, but it also highlights the importance of having a stronger and more developed capital market.

Companies need to create genuine shareholder value through sustainable profits, dividends, good governance, transparency and long-term growth.

At the same time, investors need to look beyond daily price movements and understand the businesses they own.

The real question should not simply be “Why is my share price falling?”

It should be:

“Has the value and future potential of the business changed?”

That is the question investors should be asking before deciding whether to buy, hold or sell a share.You could also use the shorter headline “Malawi’s Stock Market Under Pressure: What Investors and Companies Need to Know.”