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About N$17 billion exchanged hands on the Namibian Stock Exchange (NSX) in 2015, with dual-listed companies dominating trading at the local equities’ market, The Villager understands.
This shows a N$9.1 billion improvement, compared to the N$8 billion worth of shares traded in the 2014 financial year. The NSX is one of the largest bourses in Africa in terms of total market capitalisation, which is now hovering above the N$1.3trillion mark.
In 2013, the value traded was N$5.5 billion, and kept a steady increase since that year. NSX Chief Executive Officer Tiaan Bazuin argues that the reason why the traded value increased is partly due to big companies such as Medi- Clinic and Clover listing in 2014 and only having had a full year of trading in 2015.
“The market has also been volatile, and that leads to higher trading volumes. We also had other listings coming through from Johannesburg and Mauritius”, he said.
Bazuin emphasised that the NSX’s primary goal is not increasing trade volumes, but rather diversifying and deepening the market in terms of the financial sector strategy. A deep and diversified market allows for better returns on pension fund investments.
“There is a lot to choose from, and we are working on deepening the market to get many local companies to list on the NSX. But firstly, we need clarity on how the New Equitable Economic Empowerment Framework (NEEEF) will operate, and local companies would need to know whether listing on the NSX would be compliant with NEEEF as a way to find broad-based Namibian shareholding,” he xplained.
Meanwhile, the local index for the 2015 period was up 27.99%, with the overall index down 21.18% and the Johannesburg Stock Exchange All-Share Index up by 1.85%.
In December 2015, the total monthly value was N$812.1 million, an amount which contributed to the N$17.1 billion value traded all through 2015.
In terms of the annual overall market report, First National Bank Holdings was the best performer, being up 63.9% from 2014, whilst Anglo-American PLC was down 68%, performing the worst on the NSX.
In terms of the local front, the total value traded for 2015 was N$812.1 million, with 42.8 million being the volume traded and with 870 total deals.
Meanwhile, the financials’ counters for the 2015 period had the highest value traded as it stood at N$10.3 billion. The basic materials’ counters came in second with its total value being N$1.9 billion, whereas healthcare came third with total value traded being N$1.7 billion.
Financial counters saw a total of 2793 deals in 2015, followed by basic materials with a total of 401 deals and consumer goods with 270 deals in the period under review.
Although the consumer goods’ counter saw 270 deals in the period under review, its value traded for the 2015 period was only N$608 million, the second-lowest following the industrials’ counter which had value traded at N$574 million with only 195 deals.
The period under review saw an overall year- to-date value traded of N$16.5 billion with 4 298 total deals, whereas the Exchange Traded Funds (ETF) were N$603.1 million, with total deals which stood at 78. An ETF is basically a security which tracks the price of a commodity or a portfolio of assets like an index fund, but also trades like a stock on a bourse.
Meanwhile, the Development Capital Board (DevX) saw the lowest value traded of N$316.1 million with eight total deals. 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.
In the period under review (2014), the financial counters dominated the highest number of deals with a total of 2753 deals recorded. The 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. Exchange Traded Funds (ETFs) during the period under review recorded N$237 072 218, while volumes under this category stood at 2 104 442.