LISTED Namibian companies at the beginning of last year were worth over N$36 billion. A year later, their value has dipped by a whopping N$10 billion.
A basic comparison of the market capitalisation at the beginning and end of last year reveals this. The cause, according to their trade updates and commentary on released financials, is Covid-19 and its accompanying restrictions.
Local and international investors with shareholding in these companies have therefore lost around N$10 billion in terms of the value of the shares they hold in these companies.
This includes typical investors such as pension funds, private individuals, state-owned enterprises and insurance companies, which have all been affected.
Data from the Namibian Stock Exchange show that 10 of Namibia’s listed companies started off the year with a worth of N$36,4 billion, and late last week, their value stood at N$27,3 billion.
Market capitalisation is a measure of a company’s value calculated by multiplying the share price with the number of shares outstanding.
Many companies have seen their share price nosediving by double digits.
The companies are Namibia Breweries Limited, Nictus Holdings, Oryx Properties Limited, Paratus Namibia Holdings, Namibia Asset Management Limited, Stimulus Investments Limited, and the four banking groups: Letshego Holdings Namibia, Capricorn Group Limited, FirstRand Namibia and Standard Bank Namibia Holdings.
From the list, only Paratus Namibia Holdings and Namibia Asset Managers saw share prices edging up, while others took painful hits.
These two saw share prices moving up by 11,6% and 12%, respectively – closing the year with shares trading at N$11,49 and N$0,62.
Namibia Breweries Limited was the hardest hit, with share prices plummeting by almost a third at 31,12% – from N$48,27 to N$33,25 a share.
Following is FirstRand Namibia, of which shares also plunged – settling at N$23,04 at the end of the year, compared to a high of N$33,41 at the beginning of 2020.
Share prices of Oryx Properties, Letshego and the Capricorn Group also took a knock, dipping by 30,8%, 19,1% and 14,9%, respectively.
The consolidated figures above exclude Alpha Namibia Industries Renewable Power Limited (Anirep), which only moved to the main board last year.
Anirep and Standard Bank Namibia are all trading below their initial public offer at N$6,90 and N$9,00, respectively.
This means to sell these shares, investors will be recording actual losses on their investments.
Last year also saw the central government’s treasury bills balance hiking slightly from N$24,2 billion to N$27,3 billion.
Analysts expect some recovery this year, hinging on the availability of a Covid-19 vaccine, which could see trade resuming to normal.
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