Drivers of Stock Market Performance and a Comparative Investigation of Markets: A Case Study of the Stock Market in Malawi

Gerard Chiyamiko Kamwendo*, Muthuvel Laxmikanthan**
* DMI St. Eugene University, Zambia, Africa.
** DMI St. John the Baptist University, Malawi, Africa.
Periodicity:May - August'2024
DOI : https://doi.org/10.26634/jecom.4.2.21067

Abstract

This study investigated the influence of various drivers on the performance of stock markets in Malawi using a case study approach. Stock markets involve strategic collaborations between small and large companies to achieve their goals. This paper aimed to explore the correlation between stock market performance drivers and the performance of companies in Malawi. A mixed-method approach was employed, incorporating both quantitative and qualitative methods. The quantitative approach analyzed the financial aspects of stock market initiatives through financial reports, such as those from the Malawi Stock Exchange. Meanwhile, the qualitative approach collected data through interviews with key stakeholders. The findings indicated a positive outlook for stock market expansion, provided that awareness campaigns among the general public were intensified. The study also revealed that if banks offered tailor-made loans to individuals and companies seeking to acquire shares, the stock market would experience growth. Drivers of stock market performance significantly enhanced market performance, increased stock prices, and improved customer purchasing power. Despite these benefits, the study identified challenges, such as a lack of knowledge about shares, which hindered stock market growth. Other challenges included inflation, harsh loan conditions, and stock/share infringements, all of which negatively impacted market performance. To address these issues, stock markets implemented awareness and marketing initiatives to combat illiteracy and other barriers, aiming to expand their customer base. However, despite the significant benefits of these initiatives, limited research existed on the impact of stock market performance drivers, particularly on stock-listed companies in Malawi. This gap prompted the researcher to evaluate the influence of metrics such as stock growth and customer acquisition.

Keywords

Stock Markets, Malawi Stock Exchange, Market Performance, Strategic Collaborations, Stock Prices, Customer Purchasing Power.

How to Cite this Article?

Kamwendo, G. C., and Laxmikanthan, M. (2024). Drivers of Stock Market Performance and a Comparative Investigation of Markets: A Case Study of the Stock Market in Malawi. i-manager's Journal on Economics & Commerce, 4(2), 20-26. https://doi.org/10.26634/jecom.4.2.21067

References

[5]. Fama, E. F. (1981). Stock returns, real activity, inflation, and money. The American Economic Review, 71(4), 545-565.
[7]. Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decisions under risk. The Econometric Society, 47(2), 263-292.
[9]. Kumar, V. & Patel, S. (2023). Effective stock market initiatives: Lessons from emerging markets. Global Finance Journal, 17(1), 72-88.
If you have access to this article please login to view the article or kindly login to purchase the article

Purchase Instant Access

Single Article

North Americas,UK,
Middle East,Europe
India Rest of world
USD EUR INR USD-ROW
Pdf 35 35 200 20
Online 35 35 200 15
Pdf & Online 35 35 400 25

Options for accessing this content:
  • If you would like institutional access to this content, please recommend the title to your librarian.
    Library Recommendation Form
  • If you already have i-manager's user account: Login above and proceed to purchase the article.
  • New Users: Please register, then proceed to purchase the article.