By Emma Kakololo
WINDHOEK
The Namibian Stock Exchange (NSX) had a record turnover of N$9,4 billion this year – a 141 percent increase on the amount recorded in 2006.
The local index increased from 105.25 in July 2007 to 127.72 on October 17 this year up by 40.15 percent on 2006, which is the highest since June 13, 2000. The index reached its lowest point of 47 on December 2, 2002.
NSX’s Vice Chairperson David Nuyoma yesterday said dual listing is one of the factors behind the new record highs.
“Every time we have a dual listing, the JSE (Johannesburg Stock Exchange) and the NSX have reached all-time highs within a few weeks or days,” said Nuyoma.
Nuyoma said the NSX continues to play an important role in the development of the Namibian economy, despite the country enjoying very high savings rates with approximately N$64 billion in funds under management.
For some historic reasons, he added, investors did not always carry out adequate assessment and research on local investment opportunities.
This led to a situation where institutions continued to invest a significant proportion of these funds in South Africa and elsewhere, which remained a cause for concern to government and the central bank.
“Regulation 28 has sustained the NSX for a number of years and our indices have shown remarkable resilience this year,” he said.
“From the last listing, the index dropped over 17 percent by 17 August and recovered this amount in the last two months.”
Regulation 28 of the Pension Funds Act of 1956 as amended requires Namibian pension funds to invest 35 percent of their funds locally.