N$8b billion exchanges hands at NSX
The Namibian Stock Exchange (NSX) remains buoyant with a total of N$8 billion worth of shares being traded last year alone as investor sentiment remains positive on the local capital markets.
As at the end of December 2014, a total of N$8 billion worth of shares had been traded in terms of value, with 164 million shares traded in volume.
Financial counters dominated the highest number of deals with a total of 2753 deals recorded during the period under review.
Basic materials counters came second with 495 deals closely followed by consumer services with 406 deals.
The NSX is a computerized marketplace for the secondary trading of financial securities such as equities and bonds.
NSX Chief Executive Tiaan Bazuin said that it would be beneficial for local companies to list locally considering that there are more incentives here, as foreign investments attract foreign taxes.
He noted that the Namibian markets are dominated by local investors and pension funds, but international investors were keen to invest if more shares were available.
“More local companies should come to the market and diversify their shareholder base,” he said.
“There were no cases of non-disclosure or breaches of rules and regulations witnessed last year. We make sure enough details are provided before announcements are released,” he said.
Exchange Traded Funds (ETFs) during the period under review recorded N$237 072 218, while volumes under this category stood at 2 104 442.
An ETF is basically a security that tracks the price of a commodity or a portfolio of assets like an index fund, but also trades like a stock on a bourse.
Namibia Equity Brokers analyst Madeline Smith said that investor confidence on the local bourse remains high with a lot of factors influencing investor sentiment.
“We are on a high in terms of volumes being traded. The volumes traded last year were satisfactory,” she said.
Brian van Rensburg of PSG Wealth Management said counters on the local bourse were doing very well, although subject to variables on the market.
“There really was a lot of activity last year in terms of trade with the month of January this year being very impressive, the volumes are doing very well,” he said.
Last year a total of 38 companies were listed on the NSX including 4 Commodity ETF’s with four stock brokers and seven sponsors.
Movers and Shakers
Latest statistics availed by the NSX indicate that FirstRand Limited’s closing share price as at the close of December 2013 stood at 35,89 as compared to the December 2014 closing figure of 50,57, effectively 40% up.
In November last year, the JSE granted FirstRand Bank approval for the listing of 91 185 Krugerrand custodial certificates which will be listed on the "Exchange Traded Funds" sector.
In another development, FirstRand Ltd had also been touted to offer vehicle finance in Nigeria as the lender targets growth in the continent’s biggest economy.
Another good performing counter, Marenica Energy Limited traded from 0, 07 to 1, 89 representing a massive 2500% increase.
This massive change could have been influenced by the mining concern’s recent patenting of technology that allows it to increase the uranium extract from raw materials, thereby gaining double the uranium for next to nothing.
After test work and analysis, the upgrade was shown to concentrate the Marenica ore to achieve massively improved project economics.
Also doing well was Trustco, which had its share price increasing to 2, 70 as at the end of 2014 as compared to 1, 00 at the close of 2013.
Last year August, the Bank of Namibia approved the acquisition of Fides Bank Namibia Limited by Trustco Group Holdings Limited and this could have influenced market sentiment.
Trustco announced last year that it had concluded a transaction to acquire 100% of Fides Bank Namibia Limited, one of six licensed banks in Namibia.
The group had expressed intention to raise additional capital in the market through a combination of debt and equity aimed at improving the bank’s balance-sheet and ensuring good capitalisation.