Listed companies are feeling the pinch of the current economic meltdown with most share prices of local listed companies dropping at the end of September compared to their closing share prices in December 2017, data released by the Namibian Stock Exchange (NSX) last week shows.
Namibia Asset Management recorded the biggest drop in share price at 11.11 percent, followed by Capricorn Investment Group (10.28 percent), FNB Namibia Holdings (6.18 percent), Nictus Holdings (4.76 percent), Oryx Properties (1.94 percent), Bidvest Namibia, (0.89 percent) and Letshego Holdings (0.25 percent).
The only positive performers were Namibia Breweries whose share price went up 17.89 percent up to September (N$46 per share) and Nimbus Infrastructure which was up 4.76 percent.
On a quarterly basis, Bidvest share prices remained unchanged at N$7.77 percent from July to September. Capricorn share price dropped from N$17.10 in July, N$16.87 in August to N$16.15 in September.
FNB’s share price suffered a similar fate, dropping from N$44.97 in July, N$44.89 in August to N$43.75 in September.
The share price of Letshego dropped from N$4 in July to N$3.98 in September.
Namibia Asset Management performed poorly during the period under review, with the share price unchanged at 64 cents during the quarter ending September.
Nictus’ share price remained the same during the quarter at N$1.80, while Oryx Properties’ share price remained the same at N$20.19.
“What is clear from the financial results of most listed companies is that we are in a recession. Investors look for returns and growth, so we need to find our way out of the current state to attract those investments again and grow and create jobs and tax revenue,” NSX CEO Tiaan Bazuin told the Windhoek Observer.
“On the trading volumes we can see a reduction from last year as expected due to the changes to Regulation 28 that reduced the exposure to dual listed stocks.
“As we have limited local stocks available, the buy and hold mentality of pension fund managers becomes entrenched and reduces trading volumes. So clearly we need more local companies to list more than ever,” Bazuin said.
According to the 2017 NSX Annual Report, it had another good year, considering the economic turmoil Namibia has been facing for the period 2016 and 2017.
“The overall comparative value traded was N$14 billion during 2016, but dropped 4 percent to N$13.6 billion during 2017,” the report said.