Namibia Stock Market Commentary – Week Ending April 13, 2012

The NSX Overall index rose by 0.7% w/w. Paladin topped the gainers’ list, up 10.3% over the week. Nedbank rose 6.7% over the week, Firstrand climbed 1.5% and Sanlam added 1.4% w/w. Oceana topped the losers’ list, falling 3.9% over the week. The NSX Local Index strengthened marginally by 3bp over the week, as FNB Rose 0.1%. On the Development Capital Board, Deep Yellow rose 3.4% while Marenica lost 7.7% over the week.

NAD 65.0m traded on the NSX Overall Index with Anglo American being the heaviest traded at NAD 21.2m. NAD 17.8m traded in Barloworld and NAD 10.4m traded in Standard Bank. NAD 2.8m traded on the Local gauge, with FNB Holdings dominating at NAD 2.5m. NAD 237,568 traded in Namibia Breweries.

Chariot Oil & Gas has spudded the first prospect in its multi-well program offshore Namibia. The well is only the second to ever be drilled on the offshore Namibe Basin and is Chariot’s first in what will be a four or five-well program off Namibia. Eco (Atlantic) Oil and Gas was granted permission by the Namibian Stock Exchange, subject to regulatory approvals, to dual list on the DevX of the NSX. Deep Yellow announced XRF Fusion chemical assay results which show high-grade intersects ranging between 709ppm U3O8 and 1,071ppm U3O8. Bannerman reported positive results from the DFS for the Etango Uranium Project. The company further announced the signing of a binding Term Sheet for Epangelo to acquire an initial 5% interest and, upon a mine development decision, a further of 5% interest in Bannerman’s Namibian subsidiary. Marenica Energy announced a fully underwritten non-renounceable entitlement issue of up to approximately 249m new fully paid ordinary shares.

During the 2011/12 financial year, about NAD 13bn was generated by mining in export earnings, of which NAD 879m was collected in royalty payments for all minerals that were mined. Royalties from non-diamond minerals recorded an increase of 4%, while nuclear fuel minerals recorded a decline of 25%. February 2012 M2 Broad Money Supply rose by 2.5% m/m to NAD 58.90bn from NAD 57.48bn in January and increased 9.5% y/y from NAD 53.79bn in February 2011, according to the Bank of Namibia. PSCE increased by 0.5% m/m and rose by 10.2% y/y to NAD 45.08bn. Namibia’s population stands at NAD 2.1m people, an increase of 15% from the NAD 1.8m recorded during the 2001 Population and Housing Census. On average, a 1.5% population growth has occurred annually. Of the 2.1m people, 51% are female and 49% male, the latest census preliminary results reportedly indicate, according to the New Era.

Source: African Alliance