The NSX Local index displayed a modest upward trajectory, recording a gain of 0.25% to rest at 675.5. A more significant surge was observed in the NSX Overall Index, which saw an impressive climb of 2.67% to reach a level of 1613.8. As of August 29, 2023, a glance at the market capitalizations revealed FirstRand Namibia at the forefront with an imposing N$ 12.9 billion. Capricorn Group secured the second position with a substantial N$ 8.1 billion, followed by Namibia Breweries at N$ 7.9 billion and Mobile Telecommunications with N$ 5.3 billion. The market performance also spotlighted specific movers and shakers. Leading the pack was Letshego Holdings Namibia, a standout performer with a 2.1% growth that brought its shares to a closing price of N$ 3.95. Agra, following in its footsteps, achieved a 1.3% growth, culminating in a closing price of N$ 3.11. Trading volume, a crucial indicator of market participation, saw Namibia Breweries dominate the scene, orchestrating transactions amounting to N$ 5.5 million. Capricorn Group secured the second place with a transaction volume totaling N$ 0.5 million. In the realm of currencies, the Namibia dollar demonstrated resilience. Against the US Dollar, it appreciated by a commendable 1.68%, settling at N$ 18.47 per USD. The British Pound also felt the impact, experiencing a gain of 2.34% against the Namibian Dollar, leading to a closing rate of N$ 23.35 per GBP. The Euro, too, encountered a boost, with the local currency concluding at N$ 20.09, marking a gain of 1.37%.
Private sector credit extension (PSCE) in Namibia ticked up slightly in June 2022, according to new data from the Bank of Namibia. PSCE grew 0.75% month-on-month and 2.98% year-on-year, bringing total outstanding credit to N$111.6 billion. Credit issuance to individuals was flat month-on-month but rose 5.3% annually, driven by installment loans and personal term loans. However, corporates continued shedding debt, with credit contracting 0.1% versus last year despite a 1.9% monthly uptick. On the positive side, banking sector liquidity, though slightly weaker in June, remains robust overall. According to the central bank, the money supply and foreign reserves also increased healthily. While PSCE growth is a positive indicator for the economic recovery, the recovery is still fragile and dependent on external factors such as commodity prices, exchange rates, and interest rate developments.
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