The Namibian Stock Exchange experienced modest declines this week, with the NSX Local index dropping 0.16% to 701.9 points, while the Overall Index slipped 0.12% to close at 1797.6. Market capitalization rankings remained stable, with FirstRand Namibia maintaining its position as the exchange’s largest local company, valued at N$12.5 billion. Capricorn Group held second place at N$11.0 billion, while Namibia Breweries and Mobile Telecommunications followed at N$6.0 billion and N$5.9 billion respectively. In a week marked by subdued trading activity, Oryx Properties emerged as the top performer, gaining 0.4% to close at N$13.15 per share. Standard Bank Namibia Holdings followed with a modest 0.2% increase, ending at N$9.15. Trading volumes were notably light, with FirstRand Namibia leading at N$0.6 million in traded value, followed by Oryx Properties at N$0.2 million. The Namibian Dollar showed mixed performance against major currencies, strengthening 0.52% against the US Dollar to N$18.32, but weakening against both the British Pound and Euro. The currency fell 0.92% against the Pound to N$23.06 and declined 1.13% against the Euro to close at N$19.24.
The Bank of Namibia has moved to further stimulate the domestic economy, announcing a 25 basis point reduction in its Repo rate to 6.75 percent while maintaining the currency peg with the South African Rand. Economic growth forecasts remain unchanged, with GDP growth expected to moderate from 4.2 percent in 2023 to 3.5 percent in 2024, before recovering to 4.0 percent in 2025. However, the growth outlook faces mounting challenges, particularly from escalating global trade tensions and geopolitical conflicts. Domestically, the economy confronts headwinds from weather uncertainties, softening diamond prices, and infrastructure challenges, notably water supply disruptions in coastal regions. Inflation showed improvement throughout 2024, averaging 4.2 percent compared to 5.9 percent in 2023, primarily driven by lower food and transport costs. Despite a recent uptick, inflation projections remain contained, with expectations of 4.0 percent for 2025, rising slightly to 4.4 percent in 2026. Private Sector Credit Extension (PSCE) showed signs of revival, reaching 4.0 percent growth in December 2024, up from 3.4 percent in October. The annual average growth of 2.5 percent in 2024 represented a marginal improvement from 2023’s 2.4 percent, though overall credit growth remains subdued.
