In the local market this week, both the NSX Local index and the NSX Overall Index experienced declines, with the NSX Local index down by 1.05% to 671.6, and the NSX Overall Index down by 0.93% to 1510.9 as of March 5, 2024. Among the local companies listed on the exchange, FirstRand Namibia retained its position as the largest with a market capitalization of N$13.3 billion, followed by Capricorn Group, Namibia Breweries, and Mobile Telecommunications with market capitalizations of N$8.9 billion, N$6.2 billion, and N$5.9 billion respectively. Paratus Namibia Holdings led the market this week, closing at N$12.1 per share after experiencing a growth of 0.8%. Notably, Namibia Breweries led in terms of trading volume, with N$31.8 million worth of shares traded, followed by FirstRand Namibia with N$3.3 million worth of shares traded. Meanwhile, the local currency exhibited strength against major currencies, gaining 0.72% against the US Dollar to close at N$18.96 per USD, and 0.58% against the British Pound to close at N$24.09 per GBP. Against the Euro, it closed at N$20.58, marking a gain of 0.62%.
Private sector credit extension (PSCE) growth remained sluggish in January 2024, expanding by only 0.6% month-on-month and 2.39% year-on-year. This translates to a total outstanding credit of N$113.3 billion to the private sector after adjusting for non-resident claims. Notably, new credit issuance weakened compared to the previous 12 months, with N$2.6 billion issued in January 2024, down 5.2% from N$2.79 billion a year prior. Mortgage loans remained the dominant credit category, constituting 52.3% of total PSCE. Other loans and advances (25.1%), overdrafts (11.8%), and instalment credit (10.8%) followed distantly. While mortgage loan growth remained modest at 1.3% year-on-year, instalment credit (12.9%) and overdrafts (3.9%) exhibited the strongest annual growth. Notably, “other loans” remained stagnant. Credit extension to individuals decelerated to 2.62% year-on-year in January, the slowest pace since September 2022. This slowdown was driven by individuals acting as net repayers of “other loans,” despite continued growth in overdrafts, instalment credit, and mortgages. In contrast, corporate credit extension accelerated to 2.07% year-on-year, the fastest since December 2022. This increase was primarily driven by rising demand for instalment credit, other loans, and overdrafts, while corporations remained net repayers of mortgages.
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