The local market was active this week, with the NSX Local index up 0.78% at 621, and the NSX Overall Index down 1.14% at 1257. As at 1 October, Trustco Group was the largest local company on the exchange, with market capitalization of N$ 12.7 billion, followed by Namibia Breweries with N$ 9.8 billion, FirstRand Namibia with N$ 8.9 billion, and Capricorn Investment Group with N$ 8.3 billion. Trustco Group lead the market this week with growth of 30.63% to close at N$ 10.45 per share. In terms of volume Capricorn Investment Group lead the market with N$ 3 million worth of shares traded, with Trustco Group in second place with N$ 2.6 million worth of shares traded. The local currency lost 2.54% against the US Dollar, to close at N$ 15.32 per USD, and lost 0.91% against the British Pound, to close at N$ 18.83 per GBP. It closed at N$ 16.75 against the Euro, a loss of 1.75%.
Fitch Ratings released their latest ratings for Namibia, and revealed that they have downgraded Namibia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB’ from ‘BB+’, while upgrading the country’s outlook to Stable. Fitch based this on expectations that Namibia’s economy will contract by 1.9% during 2019, marking the third straight year of recession. They note that while government is committed to fiscal consolidation, and has reduced its deficit by 7.6% of GDP in four years, that there are now only modest room left for further savings. Fitch recommends that the debt/GDP ratio be stabilised by fiscal reform, as well as strong medium-term growth generated before a ratings upgrade can be considered.