The local market was active this week, with the NSX Local index up 1.05 at 454, and the NSX Overall Index down 3.32% at 1041. As at 8 September, Capricorn Group was the largest local company on the exchange, with market capitalization of N$ 6.7 billion, followed by Namibia Breweries with N$ 6.2 billion, FirstRand Namibia with N$ 6.17 billion, and Trustco Group with N$ 5.5 billion. Trustco Group lead the market this week with growth of 4.86% to close at N$ 3.45 per share, with Namibia Breweries in second place, closing at N$ 30.01 per share after growth of 3.3%. In terms of volume Capricorn Group lead the market with N$ 2.1 million worth of shares traded, with FirstRand Namibia in second place with N$ 1 million worth of shares traded. The local currency lost 1.88% against the US Dollar, to close at N$ 16.94 per USD, and gained 1.17% against the British Pound, to close at N$ 21.98 per GBP. It closed at N$ 19.94 against the Euro, a loss of 0.73%.
Capricorn Group released its trading statement last week, and noted that its financial results will be significantly different from the prior period. The group notes three factors – the disposal of Cavmont Bank, materially higher impairment charges due to COVID-19, as well as the 275 reduction in the Repo rate this year – as the main causes of the difference. As a result, the market was informed that profit after tax for the group for continuing operations is expected to decrease by between 0% and 5%, and will decrease by between 10% and 20% if discontinued operations are taken into account. As such, both headline and basic earning will also decrease by between 10% and 20% for the full year ending 30 June 2020. The results are expected to be published on or about 17 September 2020.
