In the local market this week, investors experienced mixed results as the NSX Local index saw a modest increase of 0.31% to reach 674.5, while the NSX Overall Index declined by 2.11% to settle at 1517.1. As of February 13, 2024, FirstRand Namibia emerged as the largest local company on the exchange, boasting a market capitalization of N$ 13.2 billion. Trailing closely behind were Capricorn Group with N$ 8.9 billion, Namibia Breweries with N$ 6.5 billion, and Mobile Telecommunications with N$ 5.8 billion. In terms of individual stock performances, Standard Bank Namibia Holdings took the lead this week, closing at N$ 8.45 per share after experiencing significant growth of 8.2%. Namibia Breweries secured the second position, closing at N$ 31.48 per share with a growth rate of 4.9%. Regarding trading volume, Namibia Breweries dominated the market with N$ 4.2 million worth of shares traded, followed by Capricorn Group with N$ 2.5 million worth of shares traded. However, the local currency faced challenges against major foreign currencies, losing ground against both the US Dollar and the British Pound. The Namibian Dollar depreciated by 1.53% against the US Dollar, closing at N$ 19.12 per USD, and by 1.47% against the British Pound, closing at N$ 24.08 per GBP. Additionally, it closed at N$ 20.48 against the Euro, reflecting a loss of 1.09%.
Namibia’s annual inflation rate ticked up slightly to 5.4% in January from 5.3% in December, per latest data from the Namibia Statistics Agency. However, inflation remains below the central bank’s 6% upper target limit for now. On a monthly basis, overall consumer prices rose 1.3% in January, driven largely by recreation, hotels, food and transport. Rising global food inflation stemming from factors like weather and the Ukraine war led to a 6.5% jump in local food prices. Categories like fruits, vegetables, eggs and fish saw double-digit growth. Meanwhile domestic holiday costs and airfares lifted recreation inflation to 10.6%. Transport inflation accelerated to 6.1%, the highest since March, on the back of a 13.2% surge in airfares and 7.5% fuel inflation. But the Ministry of Mines and Energy kept fuel prices steady in February, offering consumers slight relief. Housing and utilities inflation rose mildly to 4.5% on increases in gas, electricity and rentals. On the upside, alcoholic beverage and tobacco inflation eased to 7.3% versus 8.4% in December. For 2024, forecasts indicate inflation averaging between 2.8% and 6%, with a base case of 4.4%.
