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Market Recap 31 January to 6 February 2024

Market Recap 31 January to 6 February 2024

In a week marked by fluctuating fortunes, the Namibian Stock Exchange (NSX) witnessed declines across key indices. The NSX Local index dipped by 0.91% to settle at 672.9, while the broader NSX Overall Index saw a steeper decline of 1.53%, closing at 1542.2. At the forefront of market capitalization, FirstRand Namibia retained its dominant position, commanding N$13.9 billion, followed closely by Capricorn Group at N$8.8 billion, Namibia Breweries at N$6.2 billion, and Mobile Telecommunications at N$5.8 billion. Amidst the downturn, Agra emerged as the week’s standout performer, securing a modest growth of 0.6% and closing at N$3.34 per share. Following suit, Mobile Telecommunications clinched the runner-up spot, registering a 0.5% uptick to close at N$7.7. In terms of trading volume, Capricorn Group led the pack with N$0.2 million worth of shares traded, closely trailed by Agra with N$0.1 million. The local currency faced headwinds against major global currencies, reflecting a broader trend of volatility. Notably, the Namibian Dollar depreciated by 0.86% against the US Dollar, closing at N$18.96 per USD, while experiencing a marginal 0.13% decline against the British Pound, closing at N$23.90 per GBP. Conversely, the currency witnessed a slight uptick of 0.12% against the Euro, closing at N$20.36.

Private sector credit extension (PSCE) growth continued to display tepid expansion in December 2023, edging up by a mere 0.03% month-over-month and 1.90% year-over-year. This marks a stark contrast to the robust 3.86% growth observed in 2022, underscoring prevailing tight financial conditions and subdued demand for credit. Total credit outstanding, adjusted for interbank swaps, stood at N$112.6 billion. Credit growth to individuals recorded a modest uptick of 2.98% year-over-year, buoyed by increased demand for overdrafts, installment credit, and mortgages. Notably, individuals secured a net borrowing of N$270 million in December, signalling cautious yet persistent borrowing behaviour. Following seven consecutive months of net repayment, corporates emerged as net borrowers in December 2023, registering a 0.37% year-over-year growth. This shift was primarily fuelled by a notable 21.6% surge in installment and leasing credit. However, on a monthly basis, corporates reverted to net repayment, with a 0.51% decrease in credit outstanding.

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