The Namibian Stock Exchange (NSX) overall share price index increased by 19.2% at the end of the first quarter of 2022 aided by recoveries in all the indices, the central bank has revealed.
Similarly, on an annual basis the overall share price index surged by 40% to close at 1874.09 index points in the period under review.
The Bank of Namibia (BoN) Quarterly Bulletin for June 2022 noted that share prices on the Namibia Stock Exchange (NSX) were characterised by an annual increase in both the Overall and Local index in the first quarter of 2022.
“The annual increase in the Overall index was driven by increases in most sectoral indices, consistent with a recovery in the dual listed shares during the period under review.”
Notably, indices for industrials closed at zero as a result of a delisting of Barloworld Ltd in February 2022.
“The recovery in global stock markets was also evidenced in both the dual listed and local stocks on the NSX partly an indication of investors’ restored confidence post the pandemic during the first quarter of 2022,” said the report.
Similarly, the Local index increased by 15.3% on an annual basis to close at 511.31 index points at the end of the quarter under review.
The market capitalisation of the 32 companies listed on the NSX increased at the end of the first quarter of 2022.
“The overall market capitalisation stood at N$2.54 trillion at the end of the quarter ending March 2022, increasing by 34.9% and 17.5% year-on-year and quarter-on quarter,” stated the Bulletin.
Additionally, share price indices for all industries in the Overall Index rose in the first quarter of 2022, compared to the corresponding quarter of 2021.
“The indices for financials, consumer services, basic materials and consumer goods as well as healthcare recorded great recoveries to close at 530.0 index points, 2746.4 index points, 778.8 index points, 1154.8 index points as well as 42.1 index points respectively at the end of the first quarter of 2022.”
It further revealed that equities remained the most preferred asset class into which OFCs funds were channelled followed by securities.
“Equities remained the most preferred asset class into which OFC funds were channelled during the first quarter of 2022. Statistics showed that almost two thirds of Other/ Non-Bank Financial Corporations (OFC) funds were invested in equities, which is consistent with the long-term nature of pension funds, followed by interest bearing securities with a share of 30.5%,” the report reads.
The BoN further indicated that equities normally provide higher long-term growth and are therefore a preferred investment instrument for OFCs, despite being relatively volatile.
“This asset class was followed by cash and deposits and other 13 assets with shares of 4.2% and 9.3%, respectively,” it states.
