CHART OF THE WEEK: NSX and JSE Equity Performance: 1H 2024 Gross Returns

Both Namibia and South Africa are in election years, which can bring a level of uncertainty to the market. This is more so in liquid markets such as South Africa, where the JSE Top 40 index declined at the start of the year as factors such as political uncertainty, loadshedding, sticky inflation, and low growth have reduced investor confidence.

However, BHP’s unsolicited proposal to purchase Anglo American PLC in April 2024 saw the index rise, and South Africa’s election results and formation of a Government of National Unity subsequently saw investor confidence improve in South Africa. The JSE Top 40 1H 2024 Year-to-Date (YTD) performance stood at 5.5%.

The NSX Local had a less volatile year, increasing slowly but steadily over the past six months with Capricorn Group Ltd strongly driving the positive return. NSX Local 1H ‘24 YTD Performance = 5.8%.

The Cirrus Namibia Capped Dual Listed Equity Index highlights the returns from the JSE primary listed stocks that are dual listed on the NSX. Only tracking the stocks dual listed on the NSX, the index had a better return than the NSX Local and the JSE Top 40. Cirrus Namibia Capped Dual Listed Equity Index 1H ‘24 YTD performance = 9.1%.

The NSX Overall, being a combination of the local listed stocks and the dual listed stocks, was volatile thus far given the South African exposures, but provided the best return in 1H ‘24. NSX Overall YTD performance = 13.2%.