In the local market this week, the NSX Local index was down 1.22% at 486.3, and the NSX Overall Index was up 3.94% at 1473.4. As at 12 July 2022, Namibia Breweries was the largest local company on the exchange, with market capitalization of N$ 8.3 billion, followed by FirstRand Namibia Limited with N$ 8.2 billion, Capricorn Group Limited with N$ 6.7 billion and Mobile Telecommunications Limited with N$ 6.0 billion. Namibia Breweries lead the market this week, closing at N$ 40.01 per share after growth of 0.02%. In terms of volume Namibia Breweries lead the market with N$ 3.5 million worth of shares traded, with Capricorn Group Limited in second place with N$ 1.2 million worth of shares traded. The local currency lost 2.95% against the US Dollar, to close at N$ 17.00 per USD, and lost 2.33% against the British Pound, to close at N$ 20.20 per GBP. It closed at N$ 20.20 against the Euro, a loss of 0.67%.
The International Monetary Fund downgraded growth projections for the United States for the second time in less than a month. US GDP growth for 2022 was downgraded to 2.3% from 2.9% projected in June 2022, with GDP growth for 2023 downgraded to 1% from 1.7% a month prior. The IMF cited systemic risks to US and global economy from surging inflation, and conceded that avoiding a global recession is becoming increasingly challenging. UBS indicated the end of Russian gas supply in Europe would reduce European corporate earnings by more than 15, with the euro would dropping to 0.9 US Dollar per Euro. Should European countries start voluntary gas rationing to fill up on storage, the hit to economic growth will be severe. The euro is already reflecting a lot of the negativity in the market according to Goldman Sachs, but the currency could fall another 5% if markets price in a full shutdown of Russian Gas. Brent Crude Oil dropped to below USD 100 on fears of a nascent global recession.