In the local market this week, we witnessed some fluctuations as the NSX Local index experienced a 0.69% dip, closing at 665.4, while the NSX Overall Index also saw a decline of 0.43%, ending the week at 1511.7. As of October 31, 2023, the hierarchy of the local market remained consistent, with FirstRand Namibia securing its position as the largest local company on the exchange, boasting a market capitalization of N$13.4 billion. It was followed by Capricorn Group with N$8.6 billion, Namibia Breweries with N$6.6 billion, and Mobile Telecommunications with N$5.4 billion in market capitalization. This week’s market leaders showcased some interesting dynamics. Standard Bank Namibia Holdings took the lead, closing at N$7.6 per share after experiencing a growth of 0.4%. Following closely was Letshego Holdings Namibia, which closed at N$3.9, with a growth of 0.3%. In terms of trading volume, Namibia Breweries led the market with N$2.0 million worth of shares changing hands, while FirstRand Namibia followed closely behind with N$1.5 million in shares traded. Trustco Group’s shares experienced fluctuations but ended the week at 60 cents per share after trading 221 thousand shares worth N$99 thousand. The local currency displayed strength against major foreign currencies, gaining 1.97% against the US Dollar, closing at N$18.65 per USD, and a 2.03% gain against the British Pound, closing at N$22.66 per GBP. In the world of Euro, the local currency closed at N$19.72, marking a gain of 2.08%.
The IMF released their world economic update for October 2023, and noted that in the sub-Saharan African region, economic growth is anticipated to show a decrease, with a projected decline to 3.3 percent in 2023, before a slight pickup to 4.0 percent in 2024. The growth rates remain below the historical average of 4.8 percent. Several factors contribute to this projection, including worsening weather shocks, the global economic slowdown, and domestic supply challenges, notably in the electricity sector. Nigeria is expected to witness a decline in growth, dropping from 3.3 percent in 2022 to 2.9 percent in 2023 and 3.1 percent in 2024. High inflation is exerting negative effects on consumption in Nigeria. The forecast for 2023 is revised downward by 0.3 percentage points due to weaker oil and gas production, partially due to maintenance work. Meanwhile, in South Africa, economic growth is set to decrease from 1.9 percent in 2022 to 0.9 percent in 2023. This decline is attributed to power shortages. However, there is a 0.6 percentage point upward revision, as the severity of power shortages in the second quarter of 2023 was lower than initially anticipated.
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