Trading on the Namibia Stock Exchange (NSX) started relatively slow for primary listed companies this year while dual listed companies are booming in share prices, the latest stock market analysis released by the local bourse shows.
Simonis Storm Securities market analyst, Romay Mostert this week said the green patch experienced by dual listed companies at the equities market are largely driven by investor sentiments emanating from the micro-economic conditions in the United States of America (USA).
The USA has been experiencing liquidity constrains with their economy sinking heavily in debt; a situation that has also affected their international credit ratings.
Dual listed companies’ stocks are trading on more than one stock market and the major earner this week has been Standard Bank Namibia, which experienced a rapid change to N$105.10 from a previous trading mark of N$103.25 while primary listed companies are those listed only on the local bourse.
“Most dual listed companies have been improving in their share price. In fact, some of them have been on a roll, however, the same cannot be said for primary listed companies, which despite firm liquidity throughout the better part of last year, have remained stagnant or improved marginally,” Mostert said.
According to Mostert, most primary listed companies are most likely to experience an improvement from March this year when most of them announce half-year financial results.
He also noted that other companies including First National Bank of Namibia (FNB), Bidvest and Namibia Breweries Limited (NBL) have maintained consistency at the same price and they are likely to stimulate investor confidence within the course of the year.
Meanwhile, a detailed report from the NSX shows that major trading counters have also remained a hive of activity for institutional investors as their share prices continue to go hey-wire beyond the reach of most ordinary people.
Some of the shakers at the NSX included Bidvest Namibia and Namibia Breweries, which have remained stagnant since late last year.
NamBrew traded at N$12 and Bidvest, which has been raking in millions in profits and share earnings traded at N$9.51 whilst FNB is trading at N$13.60
On the other hand, a few companies in the financial and mining sectors have improved marginally.
In the banking sector, Standard Bank continues to dominate netting N$105.10 from a previous N$103.25 while Paladin Energy Limited traded at N$14.16 from N$13.41 as Truworths traded at N$78.75 from N$78.50.
In addition, Afrox from the chemical sector improved from a mere N$19.10 currently trading at N$19.25.
The consumer index mainly dominated by grocery and housing commodities have not been seeing the best of the new year with Nictus trading at N$3.91 down from N$4.60, Shoprite has also gone down from N$138.09 to N$135.
According to recent analysis, the food and drug retailers seem to be affected by the poor consumers’ spending, because of an increased and unbudgeted for expenditure during the last festive season.
The American mining giant, Anglo-American Plc traded down from N$325 to N$323.97 despite their recent bid to acquire DeBeers International assets, which was expected to boost their international portfolio.
NSX is regarded one of the top three performing stock markets in sub-Saharan Africa in terms of capitalisation at about N$4b after the Kenyan Stock Exchange (KSE) and the Johannesburg Stock Exchange (JSE).