Namibia Stock Exchange Performance for the Period January to May

Shares are your best shot for getting a return over and above the pace of inflation. Since the end of World War II, through many ups and downs, the average large stock has returned close to 10% a year, well ahead of inflation.

As a result, stocks can be your best way to save money for long-term goals like retirement. The Namibian Stock Exchange was one of the best performing stock markets (exchanges) to date and an investment in the overall index could have yielded you a healthy return of 9.78%.

Index Update

The NSX Overall Index surged 9.78% to close at 1094.17 as trading ranged between 974.31 and 1135.92 for the period. The NSX Local Index recorded a 3.57% return and closed the period at the high of 343.57 trading for the period ranged between 331.72 and 343.57. The “losers-gainers” split were 22 up and 2 down. Basic Materials (+13.22%) and Financials (+9.76%) were the main drivers in pushing the overall index higher but received support from the rest of the market and no sector recorded a negative return for this period. Looking at the NEB Structured indices, the MID Cap (NEB102) reported negative returns as both Paladin (-12.90%) and Afrox (-1.86%) returned negative values for the period. The period’s Top 5 performers were: Nam (+71.88%), Trustco (+55.00%), B2Gold (+21.99%), Investec (+21.91%) and Santam (+14.88%). The period’s only two laggards were Paladin (-12.90%) and Afrox (-1.86%).

Top 5 Performing Shares

Let us look at the top five performing shares on the Namibian Stock Exchange for the period ended May ’14. Suppose you were blessed with the skills or wisdom of picking a stock that holds the highest return potential, an investment in Namibia Asset Management alone could have yielded return of 71.9%, while an investment in Santam alone could have yielded a return of 14.88%. Take note that the return excludes the dividend yield and trading cost and inflation have not been deducted.

The Primary Listed Stocks’ Performance and Trades

Starting with a short introduction of the economic activities, this note gives a brief highlight of the primary listed stocks. The underlying objective is to give the reader an idea as to how often these stocks trade their shares that are “freely available to the investing public” (the free float) and their price trajectories since the beginning of 2013. Given that the benefits that can be had from holding shares in a company accrue from the increase in the share price and dividends, the afore-mentioned graph will give the reader a feel of which stocks could have given him the highest benefits based on the share price gain alone. For simplicity, our opening prices are just the closing prices of the preceding period, while the lowest – and highest prices are those reached during the period.

Prepared by Madelein Smith, MD of Namibia Equity Brokers.

Source : The Namibian