The Namibia Stock Exchange (NSX) closed at 987.24 points in May 2016, down from 1,023.96 points in April 2016, losing 3.58% on a total return basis in May compared to a 4.13% month on month (m/m) increase in April, IJG securities revealed.
The NSX Local Index increased 2.75% m/m compared to a 2.26% m/m increase in April. Over the last 12 months the NSX Overall Index returned -8.32% against +29.00% for the Local Index. The best performing share on the Overall Index in March was Medi-clinic at +5.74%, while Barloworld was the worst performer at -14.0%.
“Namibian bond premiums relative to SA yields in May were largely unchanged with the GC17 premium unchanged at 64 basis points. Winners on the All Share Index were led by Mr Price up 7.9%, Imperial up 5.0% and Harmony up 4.5%, while the lagers were Nampak, down 13.1% and Kumba, down 6.5%. Global equities stumbled into June, the dollar retreated and bonds advanced as lacklustre economic data rekindled worldwide growth concerns before a series of events that could set the tone on financial markets for the next six months,” IJG reported.
The NSX is one of the richest bourses in Africa in terms of market capitalisation. Other very competitive and rather robust stock counters include the Johannesburg Stock Exchange and the Kenyan Stock Exchange. The S&P 500 Index erased a loss of 0.6% as it seeks to push past the 2,100 level that has capped two rallies in the past eight months. The Bloomberg Commodity Index turned positive after selloffs in metals eased.
According to the IJG daily reports, the dollar slipped after its best month in almost two years, as the yen rallied on a delay to a tax hike. Crude oil was little changed before an OPEC meeting Thursday.
An amount of N$47.5m traded on the Overall Index on Wednesday with Old Mutual leading at N$7.1m, followed by Mediclinic at N$7m. On the local bourse, N$47,500 worth of FNB shares. Meanwhile N$25,344 worth of Oryx shares traded at market, while N$8,478 worth of Namibia Breweries shares traded up 1c. No ETF trades were recorded.
Earlier this year Jan-Hendrik Conradie from IJG also noted that they use a dividend discount model to assess the intrinsic value of the Namibia Breweries.
“Our required rate of return, of 13.2%, is based on a risk free rate of 9.3%, equity risk premium of 2.7%, a beta of 1.0, and a long-term sustainable growth rate of 9%. Based on these assumptions and our forecasted dividends for NBS, we value the company at an intrinsic value of N$17.04 per share,” he said.
The Villager earlier this year reported that 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.
This showed 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. During that time, NSX Chief Executive Officer Tiaan Bazuin argued 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.
In 2015, the index remained at an elevated 2.9 points in November, despite dropping to 167.4 points from the 170.3 points registered in October as company registrations were said to have fallen from 1 985 in October to 1 561 in November, while vehicle sales fell from 1 767 to 1 721.
Meanwhile the IJG Business Climate Index continued its upward trend in June 2014, increasing by 4.2 points, to the highest level yet seen in 2014. The leading indicator continued to point to a favourable future outlook, expanding to over 200 points for the first time since February. Recovery in key export prices continued to prop up the export index, which now stands at 138.6 points from 137.0 the preceding month.