The local market was very active this week, with the NSX Local index down 0.09% at 464, and the NSX Overall Index up 0.12% at 1458. As at 26 October, FirstRand Namibia was the largest local company on the exchange, with market capitalization of N$ 7.8 billion, followed by Namibia Breweries with N$ 7.1 billion, Capricorn Group with N$ 6.9 billion and Standard Bank Namibia with N$ 3.4 billion. Trustco Group lead the market this week, closing at N$ 2.25 per share after growth of 7.14%, with Paratus Namibia second, closing at N$ 12.01 after growth of 0.08%. In terms of volume FirstRand Namibia lead the market with N2.7 million worth of shares traded, with Oryx Properties in second place with N$ 2.3 million worth of shares traded. The local currency lost 1.89% against the US Dollar, to close at N$ 14.79 per USD, and lost 1.7%% against the British Pound, to close at N$ 20.36 per GBP. It closed at N$ 17.15 against the Euro, a loss of 1.55%.
Last week, the Bank of Namibia announced that the Monetary Policy Committee has decided to keep the repo rate unchanged at 3.75%. They noted that although economic activity in Namibia improved during the second quarter of the year, overall economic activity remained subdued during the year. It is expected that the Namibian economy will grow by 1.4% in 2021, and 3.4% in 2022. With average inflation for the year currently averaging 3.5%, compared to 2.2% last year, inflation is increasingly threatening the sustainability of the current repo rate, as it is expected to rise to 3.7% by year-end. Private Sector Credit Extension moderated to 2.5% during the first eight months of the year, lower than the 4.1% recorded last year. However, international reserves stood at N$ 45.9 billion, which is estimated to cover 6.7 months of imports. BoN noted that the large-scale uptake of the COVID-19 vaccines and addressing vaccine hesitancy will determine both the extent as well as the speed of economic recovery over the next two years.