The Namibian Stock Exchange demonstrated notable strength this week as both major indices posted gains, with the NSX Local index advancing 0.40% to reach 706.5 points, while the NSX Overall Index recorded a more substantial increase of 1.59%, closing at 1775.9 points. As of March 9, 2025, the market capitalization hierarchy remains largely unchanged, with FirstRand Namibia maintaining its dominant position as the largest local company at N$12.5 billion. Capricorn Group continues to hold second place with N$11.0 billion, followed by Namibia Breweries and Mobile Telecommunications, now tied at N$6.0 billion each. This week’s standout performer was Nictus Holdings, which surged an impressive 16.0% to close at N$2.90 per share. Letshego Holdings Namibia followed with a strong showing, gaining 7.8% to end the week at N$5.50 per share. Trading activity was particularly robust in the banking sector, with FirstRand Namibia dominating volume statistics at N$42.3 million worth of shares traded, substantially outpacing second-place Oryx Properties, which saw N$3.7 million in trading volume. On the currency front, the Namibian dollar showed significant strength against the US dollar, appreciating by 2.91% to close at N$18.15. It also made modest gains against the British pound, up 0.17% to N$23.47. However, the local currency weakened against the euro, depreciating by 1.96% to close at N$19.77, presenting a mixed picture for importers and exporters dealing with European markets.
Private sector credit extension in Namibia saw modest growth of 0.65% month-on-month in January 2025, bringing the total outstanding credit to N$117.90 billion. This represents a year-on-year increase of 4.06%, according to the latest data from the Bank of Namibia. The corporate sector emerged as the primary driver of growth, expanding by 1.83% month-on-month to N$49.33 billion, while credit extended to individuals contracted slightly by 0.18% to N$68.57 billion. Instalment credit and other loans and advances demonstrated strong annual growth of 16.70% and 12.28% respectively, suggesting increased demand particularly in vehicle financing. Meanwhile, mortgage loans remained sluggish with minimal growth of just 0.34% year-on-year. Banking sector liquidity continued its positive trajectory into 2025, with overall liquidity reaching N$8.5 billion in January, a 2.2% increase from December’s N$8.3 billion. Notably, the ratio of Namibian deposits held in reserve has undergone a significant shift in recent weeks, with the proportion held in Namibia versus South Africa changing from 30:70 to approximately 50:50.
