Namibia Stock Market Commentary – Week Ending December 2, 2011

The NSX Overall rose 6.4% w/w. Nictus topped the gainers’ list up 10.6% over the week, Shoprite rose 9.1% over the week, while Old Mutual ended 4.3% higher and Bidvest gained 3.4%. Santam was down 2.4% and Oceana Group lost 2.3% over the week. The NSX Local Index fell by 4bp. Forsys Metals rose 5.5% while Xemplar ended 10.4% lower.

NAD 51,850m traded on the NSX Overall Index with Standard Bank being the heaviest traded at NAD 18.1m. NAD 7.1m traded in Investec, while NAD 5.7m traded in Firstrand and NAD 5.2m traded in Barloworld. NAD 549,232 traded on the Local gauge; with FNB Holdings traded at NAD 148,342 while NAD 142,650 Bidvest. NAD 5,600 traded in Oryx Properties.

Deep Yellow has released a revised JORC Resource table. Resources for the Tubas Red Sand Deposit are now reported separately as a result of the decision to progress it as an interim stand-alone project. The Omahola Project resource now stands at 38.1mt at a grade of 404ppm U3O8 for 33.7m lbs U3O8. Extract Resources’ Swakop Uranium was finally granted a licence to develop the NAD 12bn Husab uranium mine. Epangelo Mining Company and state-owned China Guangdong Nuclear Power Company have entered into an agreement to try to secure a 10% stake in Husab, the fourth biggest Uranium deposit in the world. PE Minerals, one of the biggest BEE groups in Namibia, plans to pull out of Rosh Pinah zinc and lead mine and has offered its majority shareholding to state-owned Epangelo Mining Company. Glencore is emerging as the preferred bidder for the 50.04% stake in Namibia’s Rosh Pinah Zinc mine held by Exxaro Resources.

Namibia Breweries and Hangana Seafood Board of Directors announced the appointments of Hendrik van der Westhuizen who is currently Managing Director of Hangana Seafood, as new Managing Director of NBL, and Herman Theron, currently Operational Director at Hangana Seafood, as new Managing Director of Hangana Seafood, respectively. De Beers Marine Namibia has announced that the company will start trading under a new name, Debmarine Namibia. This follows the recently concluded government and De Beers shareholding realignment of their mining operations in terms of which the company has become an equal 50/50 joint venture.

The IJG Business Climate Index edged upwards in October, gaining 0.7bp. The investment index was the biggest mover, gaining 5.4bp as total company registrations soared to 1,339 new entities registered in October, while the NSX local index continued its impressive run to end the month at 219 index points.

Source: African Alliance