In July 2023, the annual inflation rate slowed to 4.7%, the lowest since April 2021, from the 5.4% recorded in July 2022 and 6.3% recorded the prior month. (Figure 1)
Core inflation, which excludes prices of food, non-alcoholic beverages, fuel and energy, reached a 10-month low of 4.7% in July 2023, from 5% recorded in June 2023. On a monthly basis, core consumer prices went up by 0.5%, from a 0.4% rise in June mainly attributed to housing and utilities. (Figure 1)
On a monthly basis, inflation in South Africa increased by 0.9% from 0.2% recorded in June 2023. The increase emanated from the categories of food and non-alcoholic beverages categories (1.7%), followed by alcoholic beverages and tobacco (0.4%). The transport category contributed the least (-0.4%) to monthly inflation
Analysis
The annual rate for food and non-alcoholic beverages was 9,9% in July, down from 11,0% recorded in July 2022. The bread and cereals annual inflation slowed to 13,1% from 15,5% recorded in July 2022. Maize meal was cheaper in July compared with June, with prices falling on average by 0,7% month on month. The annual inflation for meat declined for a fifth consecutive month, easing to 5,1%
The decline in fuel prices led to a decrease in transport inflation. The annual rate for fuel was negative 16,8% in July 2023. This dragged the transport category down into negative territory for the first time since January 2021
The housing and utilities inflation increased by 2,8% between June and July. On average, households are paying 14,5% more for electricity through the NERSA determination. Water tariffs increased by 9,6% and property rates by 2,9%
Figure 1: Headline and Core Inflation for South Africa (July 2022 – July 2023)
Source: STATSSA & HEI Research
Figure 2: Selected SADC countries Headline Inflation Rates (July 2023)
Source: STATSSA & HEI Research
Outlook
Going forward we expect inflation to continue easing mainly due to manufacturing companies finding alternative energy sources for production. However, there could be a second-round effect in the short to medium term through the household utilities as seen in core inflation which appears to be more ‘sticky’ than headline inflation.
Vehicle sales experienced a slowdown, with only 1260 vehicles sold in July 2023, down from the 1320 vehicles sold in June 2023. This marked a monthly decline of 60 vehicles, equivalent to a 5% decrease (Figure 1)
Interestingly, specific segments within the market showed varying trends. Sales of passenger vehicles surged by 10% month on month, indicating a positive consumer sentiment. Additionally, extra-heavy commercial vehicles also demonstrated growth, albeit at a more moderate rate of 6.82%. In contrast, light commercial vehicles saw a notable drop of -16.4% on a monthly basis.
Breaking down the figures for the seventh month of 2023, a total of 6373 vehicles were sold. Among these, passenger vehicles constituted the majority with 3288 units, followed closely by light commercial vehicles at 3039 units. Medium-sized vehicles accounted for 167 sales, while heavy commercial vehicles contributed 97 units. Furthermore, 112 extra heavy commercial vehicles were sold, and a smaller segment consisted of 8 buses. These insights provide a comprehensive overview of the vehicle sales landscape during this period, showcasing the varying dynamics across different vehicle categories
Analysis
The decline in monthly vehicle sales between July and June 2023 can be primarily attributed to the notable decrease in light commercial vehicle sales. This decline could be linked to decreased credit demand, likely influenced by an interest rate increase in April. Furthermore, the sluggish sales of commercial vehicles might be a consequence of subdued commercial activities, resulting in diminished demand for commercial transportation services
Looking at the broader picture, on an annual basis, new vehicle sales witnessed a substantial increase of 31%. This positive trend could potentially be attributed to a bolstering of consumer confidence, which in turn has stimulated higher purchasing activity within the market
During July 2023, the sales of passenger vehicles experienced a noteworthy surge, reaching 638 units, a clear upswing from the 580 units sold in June 2023. This notable increase can be attributed to the absence of interest rate hikes throughout the entire month of July, potentially allowing consumers more favorable conditions for vehicle acquisition
In contrast, light commercial vehicle sales declined to 549 units in July 2023, a significant drop from the 657 units recorded in June 2023. This decline serves as an indicator of the underperformance of the commercial sector during this period, potentially reflecting the broader economic challenges faced within the commercial landscape
Table 1: Monthly vehicle sales by Market
market
Jun-23
Jul-23
monthly unit change
monthly % change
passenger vehicles
580
638
58
10
light commercial vehicles
657
549
-108
-16.4
medium commercial vehicles sales
27
17
-10
-37
heavy commercial vehicle sales
11
9
-2
-18.2
extra heavy commercial vehicle sales
44
47
3
6.82
bus
1
0
-1
-100
Figure 1: Monthly Vehicle Sales (July 2023 vs June 2023)
Source: Lightstone Auto & HEI RESEARCH
Figure 2: Year on Year, Vehicle Sales Growth (July 2022- July 2023)
Source: Lightstone (Pty) Ltd & HEI RESEARCH
Outlook
The demand for new vehicles has demonstrated impressive resilience during the initial seven months of 2023. With the recent determination of the Bank of Namibia's Monetary Policy Committee (MPC) to uphold the repo rate in their August session, our projections indicate a continuation of the positive momentum in vehicle sales for the foreseeable short to medium term. This decision by the MPC is expected to provide ongoing stability and favorable conditions, which should further support the resilience of the vehicle market.
A total of N$ 2,679,116.80 worth of shares was traded on the NSX on Thursday with about N$ 189,721 worth of shares belonging to Shoprite Holdings and N$ 25,000 worth of shares belonging to FirstRand Namibia Ltd. No ETFs were traded on Thursday.
HEI Market Commentary
From the trading activity that took place:
Market participants bought shares belonging to Shoprite following the 52-week earnings release, resulting in the company's stock value experienced an increase of 0.6% at the closing.
FirstRand Namibia’s shares were traded by market participants, resulting in no change in share price at closing.
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
36.80
36.80
0.00%
Nictus Holdings
NHL
2.20
2.20
0.00%
Capricorn
CGP
15.00
14.99
-0.07%
First Rand Namibia
FNB
50.00
50.00
0.00%
Standard Bank Namibia
SNO
6.50
6.50
0.00%
Oryx Limited
ORY
11.30
11.30
0.00%
Letshego
LHN
3.95
3.95
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
12.75
12.75
0.00%
Mobile Telecommunication Company
MOC
7.08
7.08
0.00%
Alpha Namibia Industries Renewable Power Limited
ANE
8.99
8.99
0.00%
Table 2: Primary listed Trades
Name
South African Dual-Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
562.21
557.00
-0.93%
B2Gold Corporation
B2G
64.31
64.12
-0.30%
Oceana Group Limited
OCG
68.37
68.43
0.09%
Truworths
TRW
66.05
68.93
4.36%
Nedbank Group Limited
NBK
231.40
236.00
1.99%
Standard Bank Group
SNB
188.22
192.12
2.07%
Shoprite Holdings
SRH
252.36
253.85
0.59%
Firstrand Limited
FST
71.58
72.33
1.05%
Momentum Metropolitan Holdings
MMT
18.54
18.83
1.56%
Old Mutual Ltd
OMM
12.70
12.85
1.18%
Sanlam Limited
SLA
64.22
65.94
2.68%
Santam Limited
SNM
298.50
297.65
-0.28%
Vukile Property Fund Limited
VKN
13.02
13.17
1.15%
Investec Limited
IVD
110.75
113.75
2.71%
PSG Konsult Limited
KFS
14.31
14.50
1.33%
Table 3: Dual Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
323.87
320.82
-0.94%
New Gold Palladium ETF
NGNPLD
213.69
210.37
-1.55%
New Gold Platinum ETF N
NGNPLT
163.49
160.18
-2.02%
Satrix S&P Namibia Bond ETF)
SXNNAM
19.42
19.52
0.51%
Table 4: ETFs
Exchange Rates @ 07:00
USD/NAD
17.79
EUR/NAD
19.53
GBP/NAD
22.76
EUR/GBP
0.85
EUR/USD
1.09
GBP/USD
1.27
AUD/USD
0.66
USD/JPY
139.02
Commodities @ 07:00
Gold
1,950.15
Silver
24.35
Platinum
947.80
Palladium
1,232.28
WTI
79.91
Brent
83.56
Table 5: Exchange Rates and Commodities
Local News
Shaking in its boots, a Chinese construction company has approached the High Court seeking a reversal of N$33 million from the Namibia Revenue Agency (NamRA). (Sun Newspaper)
The Anti-Corruption Commission has come under renewed scrutiny after seemingly clearing two prominent public figures of maleficence recently. (New Era Newspaper)
Namibia is a free state, therefore, there is no need for Namibians to flee to the United Kingdom, international relations executive director Penda Naanda says. (The Namibian Newspaper)
Sub-Sahara News
Port of Rotterdam and Koninklijke Vopak have been asked to submit construction and funding plans for a R50-billion port and associated rail links to ship commodities including hydrogen and its derivatives from northwest South Africa, people familiar with the talks said. (News24)
Representatives from various African and Caribbean entities joined forces at a historic event this week in the capital of Barbados, Bridgetown, to demand reparations for slavery and its legacy in today’s society. (CNBC Africa)
"Global food systems are broken - and billions of people are paying the price," according to UN Secretary-General António Guterres. (AllAfrica News)
International News
The Bank of Japan made its yield curve control policy more flexible and loosened its defense of a long-term interest rate cap on Friday, in moves seen by investors as a prelude to an eventual shift away from massive monetary stimulus. (Reuters News)
Asian stocks ended on a muted note Friday as fresh U.S. labor market data spurred concerns that the Federal Reserve will keep interest rates higher for longer to rein inflation. (RTT News)
The situation in Niger “remains fluid” a day after mutinous soldiers detained toppled President Mohamed Bazoum and announced they had seized power in a coup because of the West African country’s deteriorating security situation. (Aljazeera News)
A total of N$ 3,263,691.56 worth of shares was traded on the NSX on Wednesday with about N$ 369,653 worth of shares belonging to Anglo-American plc and N$ 73,600 worth of shares belonging to Namibia Breweries. ETFs worth N$ 5,733,319.00 were traded on Wednesday
HEI Market Commentary
From the trading activity that took place:
Market participants sold-off shares belonging to Anglo-American following the U.S Feds interest rate hike by 25bps, resulting in the company's stock value experiencing an increase of 3.4% at the closing.
FirstRand Namibia’s shares were traded by market participants, resulting in a decline of 1.4% change in share price at closing.
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
36.80
36.80
0.00%
Nictus Holdings
NHL
2.20
2.20
0.00%
Capricorn
CGP
15.00
15.00
0.00%
First Rand Namibia
FNB
50.00
50.00
0.00%
Standard Bank Namibia
SNO
6.50
6.50
0.00%
Oryx Limited
ORY
11.10
11.30
1.80%
Letshego
LHN
3.86
3.95
2.33%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
12.75
12.75
0.00%
Mobile Telecommunication Company
MOC
7.08
7.08
0.00%
Alpha Namibia Industries Renewable Power Limited
ANE
8.99
8.99
0.00%
Table 2: Primary listed Trades
Name
South African Dual-Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
570.09
562.21
-1.38%
B2Gold Corporation
B2G
63.17
64.31
1.80%
Oceana Group Limited
OCG
69.44
68.37
-1.54%
Truworths
TRW
63.26
66.05
4.41%
Nedbank Group Limited
NBK
229.63
231.40
0.77%
Standard Bank Group
SNB
187.08
188.22
0.61%
Shoprite Holdings
SRH
251.06
252.36
0.52%
Firstrand Limited
FST
70.96
71.58
0.87%
Momentum Metropolitan Holdings
MMT
18.56
18.54
-0.11%
Old Mutual Ltd
OMM
12.60
12.70
0.79%
Sanlam Limited
SLA
64.00
64.22
0.34%
Santam Limited
SNM
296.79
298.50
0.58%
Vukile Property Fund Limited
VKN
12.92
13.02
0.77%
Investec Limited
IVD
110.00
110.75
0.68%
PSG Konsult Limited
KFS
14.12
14.31
1.35%
Table 3: Dual Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
321.16
323.87
0.84%
New Gold Palladium ETF
NGNPLD
217.86
213.69
-1.91%
New Gold Platinum ETF N
NGNPLT
163.89
163.49
-0.24%
Satrix S&P Namibia Bond ETF)
SXNNAM
19.46
19.42
-0.21%
Table 4: ETFs
Exchange Rates @ 07:00
USD/NAD
17.61
EUR/NAD
19.54
GBP/NAD
22.81
EUR/GBP
0.85
EUR/USD
1.10
GBP/USD
1.29
AUD/USD
0.67
USD/JPY
140.10
Commodities @ 07:00
Gold
1,976.25
Silver
25.14
Platinum
976.05
Palladium
1,256.50
WTI
79.48
Brent
83.17
Table 5: Exchange Rates and Commodities
Local News
Road running enthusiasts are up for a treat as the Vivo Energy Windhoek Marathon takes centre stage in the capital on Saturday morning. (Sun Newspaper)
Namibia’s privately-owned domestic and regional airline FlyNamibia will join the independent South African-based airline, Airlink, to promote its flights and services to travel agents worldwide on the Global Distribution System (GDS). (New Era Newspaper)
Officials from the Ministry of Environment, Forestry, and Tourism in the Omusati region last week reportedly confiscated firewood belonging to six destitute single mothers who make a living by selling firewood. (The Namibian Newspaper)
Sub-Sahara News
Steinhoff's shareholders have voted to dissolve the company and delist it from the Johannesburg and Frankfurt stock exchanges. (News24)
The Federal Reserve on Wednesday approved a much-anticipated interest rate hike that takes benchmark borrowing costs to their highest level in more than 22 years. (CNBC Africa)
A group of soldiers in Niger said that President Mohamed Bazoum has been removed from power. They also said the nation's borders are closed and a curfew has been imposed "until further notice”. (AllAfrica News)
International News
Russia's defense minister accompanied North Korean leader Kim Jong Un to a defense exhibition that featured the North's banned ballistic missiles as the neighbors pledged to boost ties, North Korean state media reported on Thursday. (Reuters News)
Markets in Europe are expected to open on a weak note on Thursday amidst anxiety ahead of the monetary policy reviews by major central banks and the updates to corporate earnings. (RTT News)
Gig workers have welcomed a new law in India’s largest state Rajasthan to impose a tax on revenue earned by digital platforms that operate in the state, including global giants Uber and Amazon, even as industry groups have warned it will eventually hurt customers and derail business in the state. (Aljazeera News)
A total of N$ 36,703,272.25 worth of shares was traded on the NSX on Wednesday with about N$ 13,350,997 worth of shares belonging to Oceana Group Limited and N$152,750 worth of shares belonging to FirstRand Namibia Ltd. No ETFs were traded on Wednesday.
HEI Market Commentary
From the trading activity that took place:
Share belonging to Oceana Group were traded by market participants, resulting in no change in the company's stock value at closing
FirstRand Namibia’s shares were traded by market participants, resulting in a slight uptick in share price from N$49.00 to N$50.00 at closing.
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
36.80
36.80
0.00%
Nictus Holdings
NHL
2.20
2.20
0.00%
Capricorn
CGP
14.70
14.70
0.00%
First Rand Namibia
FNB
50.00
50.00
0.00%
Standard Bank Namibia
SNO
6.50
6.50
0.00%
Oryx Limited
ORY
11.30
11.30
0.00%
Letshego
LHN
3.85
3.85
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
12.75
12.75
0.00%
Mobile Telecommunication Company
MOC
7.50
7.50
0.00%
Alpha Namibia Industries Renewable Power Limited
ANE
8.99
8.99
0.00%
Table 2: Primary listed Trades
Name
South African Dual-Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
537.35
531.15
-1.15%
B2Gold Corporation
B2G
65.86
67.72
2.82%
Oceana Group Limited
OCG
69.00
69.00
0.00%
Truworths
TRW
59.90
60.10
0.33%
Nedbank Group Limited
NBK
226.28
225.51
-0.34%
Standard Bank Group
SNB
185.80
185.35
-0.24%
Shoprite Holdings
SRH
239.19
237.53
-0.69%
Firstrand Limited
FST
70.81
70.60
-0.30%
Momentum Metropolitan Holdings
MMT
18.47
18.39
-0.43%
Old Mutual Ltd
OMM
12.58
12.62
0.32%
Sanlam Limited
SLA
63.40
63.78
0.60%
Santam Limited
SNM
293.00
294.00
0.34%
Vukile Property Fund Limited
VKN
12.27
12.40
1.06%
Investec Limited
IVD
109.58
111.82
2.04%
PSG Konsult Limited
KFS
13.50
13.76
1.93%
Table 3: Dual Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
329.59
328.78
-0.25%
New Gold Palladium ETF
NGNPLD
225.81
227.00
0.53%
New Gold Platinum ETF N
NGNPLT
168.91
170.11
0.71%
Satrix S&P Namibia Bond ETF)
SXNNAM
19.35
19.11
-1.24%
Table 4: ETFs
Exchange Rates @ 07:00
USD/NAD
17.86
EUR/NAD
20.03
GBP/NAD
23.09
EUR/GBP
0.86
EUR/USD
1.12
GBP/USD
1.29
AUD/USD
0.68
USD/JPY
139.59
Commodities @ 07:00
Gold
1,983.55
Silver
25.32
Platinum
979.15
Palladium
1,297.28
WTI
75.24
Brent
79.41
Table 5: Exchange Rates and Commodities
Local News
Experts have called for a summary of the feasibility and implementation agreement between Hyphen Hydrogen Energy and government, with Popular Democratic Movement (PDM) leader McHenry Venani. (Sun Newspaper)
Airlink, Southern Africa’s independent and privately-owned regional airline, recently unveiled a distinctive special-liveried new addition to its fleet. The newly acquired Embraer E195 jetliner, which now sports a classy jet-black paint scheme, last week debuted on a test flight at OR Tambo International Airport and will soon operate on Airlink’s main domestic and regional trunk services. (New Era Newspaper)
The Henley Passport Index is the original, authoritative ranking of all the world’s passports according to the number of destinations their holders can access without a prior visa. (The Namibian Newspaper)
Sub-Sahara News
The steelmaker's earnings plunge reflects wider turmoil in the manufacturing as a result of poor growth and Stage 6 load shedding. (News24)
Fears about artificial intelligence-powered technologies and tools taking over work currently done by humans have intensified since ChatGPT went viral late last year (CNBC Africa)
Egoli Gas has denied early reports that the massive explosion in the Johannesburg inner city on Wednesday was caused by a gas leak. (AllAfrica News)
International News
Hundreds of protesters stormed the Swedish embassy in central Baghdad in the early hours of Thursday morning, scaling its walls and setting it on fire in protest against the expected burning of a Koran in Sweden. (Reuters News)
Asian stocks followed Wall Street higher on Thursday, as tamer-than-expected U.S. inflation data bolstered hopes of the Federal Reserve nearing the end of its tightening campaign. (RTT News)
Israeli forces have shot a Palestinian dead and injured at least four others – two in serious condition – in the occupied West Bank city of Nablus, the Palestinian health ministry and the Red Crescent said. (Aljazeera News)
A total of N$131,108,667.84 worth of shares was traded on the NSX on Tuesday with about N$2,433,603 worth of shares belonging to Anglo-American plc and N$ 97,453 worth of shares belonging to Namibia Breweries. ETFs worth N$ 18,887,862.12 were traded on Tuesday.
HEI Market Commentary
From the trading activity that took place:
Share belonging to Anglo-American continues to be sold-off by market participants as commodity prices declines, resulting in a decline of 1.2% in the company's stock value at closing
Namibia Breweries’ shares were traded by market participants, resulting in no change in share price at closing.
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
36.80
36.80
0.00%
Nictus Holdings
NHL
2.20
2.20
0.00%
Capricorn
CGP
14.70
14.70
0.00%
First Rand Namibia
FNB
50.00
49.99
-0.02%
Standard Bank Namibia
SNO
6.50
6.50
0.00%
Oryx Limited
ORY
11.30
11.30
0.00%
Letshego
LHN
3.86
3.86
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
12.75
12.75
0.00%
Mobile Telecommunication Company
MOC
7.50
7.08
-5.60%
Alpha Namibia Industries Renewable Power Limited
ANE
8.99
8.99
0.00%
Table 2: Primary listed Trades
Name
South African Dual-Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
544.00
537.35
-1.22%
B2Gold Corporation
B2G
65.85
65.86
0.02%
Oceana Group Limited
OCG
69.27
69.00
-0.39%
Truworths
TRW
60.32
59.90
-0.70%
Nedbank Group Limited
NBK
224.00
226.28
1.02%
Standard Bank Group
SNB
185.32
185.80
0.26%
Shoprite Holdings
SRH
239.16
239.19
0.01%
Firstrand Limited
FST
70.32
70.81
0.70%
Momentum Metropolitan Holdings
MMT
18.46
18.47
0.05%
Old Mutual Ltd
OMM
12.50
12.58
0.64%
Sanlam Limited
SLA
62.45
63.40
1.52%
Santam Limited
SNM
292.70
293.00
0.10%
Vukile Property Fund Limited
VKN
12.27
12.27
0.00%
Investec Limited
IVD
110.00
109.58
-0.38%
PSG Konsult Limited
KFS
13.51
13.50
-0.07%
Table 3: Dual Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
329.01
328.78
-0.07%
New Gold Palladium ETF
NGNPLD
225.59
227.00
0.63%
New Gold Platinum ETF N
NGNPLT
169.97
170.11
0.08%
Satrix S&P Namibia Bond ETF)
SXNNAM
19.07
19.11
0.21%
Table 4: ETFs
Exchange Rates @ 07:00
USD/NAD
17.87
EUR/NAD
20.05
GBP/NAD
23.14
EUR/GBP
0.86
EUR/USD
1.12
GBP/USD
1.29
AUD/USD
0.67
USD/JPY
139.40
Commodities @ 07:00
Gold
1,979.30
Silver
25.15
Platinum
992.15
Palladium
1,307.53
WTI
75.53
Brent
79.64
Table 5: Exchange Rates and Commodities
Local News
The Namibia Tourism Board (NTB) recently wrapped up its 2023 China roadshow themed “Space & Time”, which was successfully staged in Beijing, Shenzhen and Shanghai. (Sun Newspaper)
After spending N$189 million on its construction, a further N$51 million is needed to revive the Zambezi Waterfront Tourism Park, which has not been operational for nearly seven years. (New Era Newspaper)
The faction of the Ovaherero Traditional Authority (OTA) led by chief Mutjinde Katjiua has raised concerns over mining activities in their jurisdiction being executed with minimal benefits to the community (The Namibian Newspaper)
Sub-Sahara News
Shares in SA's biggest steelmaker Arcelor Mittal crashed by 43% on Tuesday afternoon, wiping out about R1.7 billion in shareholder value. (News24)
Nearly half of the projects awarded under the re-launch of South Africa’s renewable power purchase programme have failed, two government sources told Reuters, undermining plans to use wind and solar to ease the nation’s power crisis. (CNBC Africa)
Women's empowerment is like a pebble dropped in a pond. The ripples it creates spread far and wide, benefiting everyone in society. (AllAfrica News)
International News
The U.S. military was scrambling to establish the fate of an American soldier who made an unauthorised crossing of the inter-Korean border into North Korea, throwing Washington into a new crisis in its dealing with the nuclear-armed state. (Reuters News)
Asian stocks ended mixed on Wednesday as investors awaited U.S. consumer inflation data that could provide more clarity on the Federal Reserve's monetary policy plans (RTT News)
For the first time since the 1980s, the United States has deployed a nuclear-armed ballistic missile submarine (SSBN) to South Korea, as the allies launched talks to coordinate their responses in the event of a nuclear war with North Korea. (Aljazeera News)
A total of N$ 159,103,250.43 worth of shares was traded on the NSX on Monday with about N$2,320,668 worth of shares belonging to Anglo-American plc and N$ 721,280 worth of shares belonging to Namibia Breweries. No ETFs were traded on Monday
HEI Market Commentary
From the trading activity that took place:
Share belonging to Anglo-American continues to be sold-off by market participants as China’s weak economic data deteriorates commodity prices, resulting in a decline of 2.4% in the company's stock value at closing
Namibia Breweries’ shares were traded by market participants, resulting in no change in share price at closing.
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
36.80
36.80
0.00%
Nictus Holdings
NHL
2.20
2.20
0.00%
Capricorn
CGP
14.70
14.70
0.00%
First Rand Namibia
FNB
50.00
50.00
0.00%
Standard Bank Namibia
SNO
6.50
6.50
0.00%
Oryx Limited
ORY
11.30
11.30
0.00%
Letshego
LHN
3.85
3.85
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
12.75
12.75
0.00%
Mobile Telecommunication Company
MOC
7.50
7.50
0.00%
Alpha Namibia Industries Renewable Power Limited
ANE
8.99
8.99
0.00%
Table 2: Primary listed Trades
Name
South African Dual-Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
557.25
544.00
-2.38%
B2Gold Corporation
B2G
67.74
65.85
-2.79%
Oceana Group Limited
OCG
68.37
69.27
1.32%
Truworths
TRW
59.99
60.32
0.55%
Nedbank Group Limited
NBK
223.11
224.00
0.40%
Standard Bank Group
SNB
183.57
185.32
0.95%
Shoprite Holdings
SRH
238.04
239.16
0.47%
Firstrand Limited
FST
69.86
70.32
0.66%
Momentum Metropolitan Holdings
MMT
18.57
18.46
-0.59%
Old Mutual Ltd
OMM
12.53
12.50
-0.24%
Sanlam Limited
SLA
63.10
62.45
-1.03%
Santam Limited
SNM
287.84
292.70
1.69%
Vukile Property Fund Limited
VKN
12.09
12.27
1.49%
Investec Limited
IVD
108.41
110.00
1.47%
PSG Konsult Limited
KFS
13.62
13.51
-0.81%
Table 3: Dual Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
330.38
329.01
-0.41%
New Gold Palladium ETF
NGNPLD
221.01
225.59
2.07%
New Gold Platinum ETF N
NGNPLT
169.89
169.97
0.05%
Satrix S&P Namibia Bond ETF)
SXNNAM
19.07
19.07
0.00%
Table 4: ETFs
Exchange Rates @ 07:00
USD/NAD
18.01
EUR/NAD
20.26
GBP/NAD
23.56
EUR/GBP
0.85
EUR/USD
1.12
GBP/USD
1.30
AUD/USD
0.68
USD/JPY
138.49
Commodities @ 07:00
Gold
1,961.65
Silver
25.07
Platinum
992.10
Palladium
1,292.53
WTI
74.21
Brent
78.58
Table 5: Exchange Rates and Commodities
Local News
Mines minister Tom Alweendo says Namibia should be allowed to develop its lithium resources locally, despite suggestions that it could be contravening World Trade Organisation (WTO) threats. (Sun Newspaper)
The Chief executive officer of the Namibia Investment Promotion and Development Board (NIPDB), Nangula Uaandja, says Namibia is the land of many and endless opportunities and is ready to welcome numerous investments. (New Era Newspaper)
Former presidential economic adviser and incoming chief executive officer (CEO) of the Development Bank of Namibia, John Steytler, has called for the immediate removal of underperforming chief executive officers and board members from state-owned enterprises. (The Namibian Newspaper)
Sub-Sahara News
Momentum Health Solutions says the state won't need to raise additional taxes to fund the primary care rollout of NHI if it allows the private sector to expand to low-income demographics. (News24)
The International Monetary Fund’s executive board has approved a $271 million Extended Credit Facility for Burundi, with an immediate disbursement of over $62 million, the IMF said in a statement late on Monday. (CNBC Africa)
UN Secretary-General António Guterres said on Monday that he deeply regrets Russia's decision to terminate the Black Sea Initiative, in effect ending a "lifeline" for hundreds of millions worldwide facing hunger and spiralling food costs. (AllAfrica News)
International News
Soaring summer temperatures across southern Europe could prompt a lasting shift in tourist habits, with more travellers choosing cooler destinations or taking their holidays in spring or autumn to dodge the extreme heat, tourism bodies and experts predict. (Reuters News)
Asian stocks advanced on Tuesday, the dollar dipped and U.S. Treasury yields drifted lower after comments from several Fed officials suggested the U.S. central bank is nearing the end of its rate-hiking cycle (RTT News)
Russia has launched air attacks on targets in southern and eastern Ukraine using drones and possibly ballistic missiles, Ukraine’s air force said. (Aljazeera News)
A total of N$ 178,315,889.08 worth of shares was traded on the NSX on Friday with about N$ 504,067 worth of shares belonging to Anglo-American plc and N$ 13,080,470 worth of shares belonging to FirstRand Namibia Ltd. No ETFs were traded on Friday
HEI Market Commentary
From the trading activity that took place:
Share belonging to Anglo-American were sold-off by market participants as China’s weak economic data deteriorates commodity prices, resulting in a decline of 0.5% in the company's stock value at closing
FirstRand Namibia’s shares were dumped by market participants, resulting in a decline of 0.8% in share price at closing.
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
36.80
36.80
0.00%
Nictus Holdings
NHL
2.20
2.20
0.00%
Capricorn
CGP
14.65
14.70
0.34%
First Rand Namibia
FNB
50.40
50.00
-0.79%
Standard Bank Namibia
SNO
6.50
6.50
0.00%
Oryx Limited
ORY
11.30
11.30
0.00%
Letshego
LHN
3.85
3.85
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
12.75
12.75
0.00%
Mobile Telecommunication Company
MOC
7.50
7.50
0.00%
Alpha Namibia Industries Renewable Power Limited
ANE
8.99
8.99
0.00%
Table 2: Primary listed Trades
Name
South African Dual-Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
559.80
557.25
-0.46%
B2Gold Corporation
B2G
68.72
67.74
-1.43%
Oceana Group Limited
OCG
69.25
68.37
-1.27%
Truworths
TRW
59.98
59.99
0.02%
Nedbank Group Limited
NBK
224.61
223.11
-0.67%
Standard Bank Group
SNB
183.63
183.57
-0.03%
Shoprite Holdings
SRH
238.60
238.04
-0.23%
Firstrand Limited
FST
69.84
69.86
0.03%
Momentum Metropolitan Holdings
MMT
18.49
18.57
0.43%
Old Mutual Ltd
OMM
12.49
12.53
0.32%
Sanlam Limited
SLA
62.90
63.10
0.32%
Santam Limited
SNM
290.00
287.84
-0.74%
Vukile Property Fund Limited
VKN
12.07
12.09
0.17%
Investec Limited
IVD
107.23
108.41
1.10%
PSG Konsult Limited
KFS
13.51
13.62
0.81%
Table 3: Dual Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
327.30
330.38
0.94%
New Gold Palladium ETF
NGNPLD
223.44
221.01
-1.09%
New Gold Platinum ETF N
NGNPLT
168.05
169.89
1.09%
Satrix S&P Namibia Bond ETF)
SXNNAM
19.07
19.07
0.00%
Table 4: ETFs
Exchange Rates @ 07:00
USD/NAD
18.08
EUR/NAD
20.31
GBP/NAD
23.65
EUR/GBP
0.85
EUR/USD
1.12
GBP/USD
1.30
AUD/USD
0.68
USD/JPY
138.45
Commodities @ 07:00
Gold
1,957
Silver
25.01
Platinum
975.00
Palladium
1,256.78
WTI
74.25
Brent
88.75
Table 5: Exchange Rates and Commodities
Local News
Parliament is among key state institutions claiming to be in the dark about the biggest investment in the country's history. (Sun Newspaper)
Parliamentarian Henny Seibeb has accused ministers of turning parastatals into cash cows to foot their globetrotting desires through subsistence and travel allowances. (New Era Newspaper)
In an attempt to preserve jobs and maintain effective refuse management, the Swakopmund municipal council recently agreed to the continuation of an agreement with waste management company Rent-a-Drum. (The Namibian Newspaper)
Sub-Sahara News
Richemont reported higher first-quarter sales as a rebound in China outweighed a decline in the Americas. (News24)
Sub-Saharan Africa’s gaming industry is expected to generate over $1 billion for the first time in 2024. (CNBC Africa)
The 194 Member States of the World Health Organization (WHO) are currently negotiating the first pandemic accord (AllAfrica News)
International News
China's economy grew at a frail pace in the second quarter as demand weakens at home and abroad, with the post-COVID momentum faltering rapidly and raising pressure on policymakers to deliver more stimulus to shore up activity. (Reuters News)
Asian stocks ended Monday's session on a mixed note after data showed China's economy teetered on the brink of deflation in June, adding to the case for policymakers to launch more stimulus to boost growth. (RTT News)
A United Nations and Turkey-brokered pact that allowed the export of Ukrainian grain via the Black Sea is set to expire on Monday if Russia does not agree to extend it. (Aljazeera News)
In June 2023, the annual inflation rate slowed to 5.3% from the 6.0% recorded in June 2022 and from the 6.3% recorded the prior month. (Figure 1)
The biggest contributors to inflation were: food and non-alcoholic beverages (11.7 %), recreation and culture (10.1%), and miscellaneous goods and services (8.1 %). (Figure 2)
Namibia recorded an inflation rate of 0.1% on a monthly basis in June 2023 compared to 0.2% in May 2023. The monthly decline was mainly driven by transport inflation which recorded a decline of 0.4%
Analysis
The food and non-alcoholic beverages component which accounts for 16.5% of the NCPI basket, recorded an annual inflation rate of 11.7% for June 2023, this was less than the 12.5% recorded in May 2023 but more than the 7.0% recorded for June 2022. The increase in the annual inflation rate for this category was mainly attributed to an increase in the prices of vegetables (18.5%), bread and cereals (17.3%), and fruits (17.2%). This was the 6th month of Food and non-alcoholic beverages being the largest contributor to inflation.
The transport category which accounts for 14.3% of the consumer basket registered a decline in the annual inflation rate of 0.1% in June 2023 compared to 18.6% recorded in June 2022. The decline in the annual inflation rate for this component was reflected mainly in the subcomponent of operation of personal transport equipment which declined by 2.5% compared to 32.0% obtained in June 2022 attributed to the -7% fall in petrol and diesel prices. On a monthly basis, the category registered a decline of 0.4% in the general level of prices in June 2023 compared to a decline of 0.6% registered in May 2023.
Recreation and culture recorded an increase in the annual inflation rate of 10.1% from 4.9%. This was influenced by an increase in the demand for package holidays as travel activities increases due to June being a school holiday month
The annual inflation rate for miscellaneous goods and services increased from 0.8% to 8.1%. This was driven by an increase in prices of insurance services
Figure 1: Annual Inflation Index & Rate Namibia, (June 2022 – June 2023)
Source: NSA & HEI Research
Figure 2: Sub-Categorical analysis (%) change Year on Year(y-o-y) and Month on Month(m-o-m)
Source: NSA & HEI Research
Outlook
Going forward we expect inflation to continue easing mainly due to the base effect and the anticipated decline in prices of major components such as food and transport. This is due to easing cost-push factors and a decline in global oil prices.
A total of N$ 10,034,623.10 worth of shares was traded on the NSX on Wednesday with about N$ 817,147 worth of shares belonging to Anglo-American plc and N$ 158,776 worth of shares belonging to Shoprite Holdings. No ETFs were traded on Wednesday.
HEI Market Commentary
From the trading activity that took place:
Share belonging to Anglo-American was subscribed by market participants as cooling U.S inflation data boosted investor confidence in the mining sector, resulting in an increase of 3.1% in the company's stock value at closing
Shoprite Holdings’ shares were traded by market participants after the Competition Tribunal ruling regarding its exclusive lease agreements, resulting in a slight increase in share price by 2.5% at closing.
Name
NSX Local Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Namibian Breweries
NBS
36.80
36.80
0.00%
Nictus Holdings
NHL
2.20
2.20
0.00%
Capricorn
CGP
14.65
14.65
0.00%
First Rand Namibia
FNB
50.40
50.40
0.00%
Standard Bank Namibia
SNO
6.50
6.50
0.00%
Oryx Limited
ORY
11.00
11.00
0.00%
Letshego
LHN
3.85
3.85
0.00%
Namibia Asset Management
NAM
0.68
0.68
0.00%
Stimulus
SILP
127.90
127.90
0.00%
Paratus Namibia Holdings Ltd
PNH
12.75
12.75
0.00%
Mobile Telecommunication Company
MOC
7.50
7.50
0.00%
Alpha Namibia Industries Renewable Power Limited
ANE
8.99
8.99
0.00%
Table 2: Primary listed Trades
Name
South African Dual-Listed Ticker
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
Anglo-American plc
ANM
533.52
550.00
3.09%
B2Gold Corporation
B2G
66.95
67.02
0.10%
Oceana Group Limited
OCG
69.11
70.96
2.68%
Truworths
TRW
56.48
59.60
5.52%
Nedbank Group Limited
NBK
220.73
224.46
1.69%
Standard Bank Group
SNB
175.51
179.01
1.99%
Shoprite Holdings
SRH
233.24
239.11
2.52%
Firstrand Limited
FST
67.83
68.97
1.68%
Momentum Metropolitan Holdings
MMT
18.11
18.32
1.16%
Old Mutual Ltd
OMM
12.06
12.26
1.66%
Sanlam Limited
SLA
60.22
61.19
1.61%
Santam Limited
SNM
283.08
283.10
0.01%
Vukile Property Fund Limited
VKN
12.04
12.12
0.66%
Investec Limited
IVD
104.42
106.58
2.07%
PSG Konsult Limited
KFS
13.49
13.53
0.30%
Table 3: Dual Listed Trades
Name
ETFs
Price Previous Close 'N$
Price End of Day 'N$
Daily Change %
New Gold Issuer Ltd NM
NGNGLD
337.83
331.70
-1.81%
New Gold Palladium ETF
NGNPLD
222.13
226.07
1.77%
New Gold Platinum ETF N
NGNPLT
167.81
167.50
-0.18%
Satrix S&P Namibia Bond ETF)
SXNNAM
18.91
18.93
0.11%
Table 4: ETFs
Exchange Rates @ 07:00
USD/NAD
18.16
EUR/NAD
20.23
GBP/NAD
23.59
EUR/GBP
0.85
EUR/USD
1.11
GBP/USD
1.29
AUD/USD
0.68
USD/JPY
138.77
Commodities @ 07:00
Gold
1,961.45
Silver
24.37
Platinum
962.80
Palladium
1,294.28
WTI
75.92
Brent
80.33
Table 5: Exchange Rates and Commodities
Local News
Rössing Uranium has sponsored N$50 000 to a team of 20 small-scale miners, under the Emerging Mining Association of Namibia, to attend an international mining conference in Angola (Sun Newspaper)
Meatco employees yesterday took to the streets to voice their grievances and demand significant improvements to their working conditions and pay (New Era Newspaper)
Mobile Telecommunications Company (MTC) yesterday said it would not share its infrastructure with other industry players. (The Namibian Newspaper)
Sub-Sahara News
The Competition Tribunal on Wednesday agreed to give Shoprite as much time as its rival, Pick n Pay, to phase out controversial exclusive lease agreements (News24)
Global public debt surged to a record $92 trillion in 2022 as governments borrowed to counter crises, such as the COVID-19 pandemic, with the burden being felt acutely by developing countries, a United Nations report said. (CNBC Africa)
At least seven people were killed in Wednesday's protests in Kenya, as demonstrators took to the streets to protest the high cost of living (AllAfrica News)
International News
President Joe Biden accused Russian President Vladimir Putin of having a "craven lust for land and power" at the end of a NATO summit on Wednesday where Ukraine won new security assurances from the U.S. and its allies for its defense against Moscow. (Reuters News)
European stocks tumbled on Thursday, as heightened concerns about China's economic recovery and expectations for a more hawkish Federal Reserve sapped investors' appetite for risk. (RTT News)
Pita Limjaroenrat’s progressive party may have won the most number of seats in Thailand’s general election, but it is far from certain that the 42-year-old businessman will succeed in becoming the Southeast Asian nation’s next prime minister. (Aljazeera News)
