Currency depreciation driving local performance

THE strong performance of the local currency over the last eight quarters has come to an end during the third quarter of 2004, partly as a result of the unexpected 50 basis points in South African interest rates, Investment House Namibia (IHN) has said.

In its latest quarterly market performance review of (July to September) IHN said the rand/ Namibia dollar weakened against the US dollar and all major currencies in Europe , and the Australian dollar. The Namibian Stock Exchange also outperformed the local index for the first time this year, with IHN attributing this to strong performance from resource, financial and retail counters.The South African equity performance was boosted by the currency and financial counters, with the resource and gold counters managing to turn around amid a weaker rand and improved commodity prices.The All Share Index closed at all time high of 11 761.IHN said the best Namibian performers during the quarter were African Portland Industrial Holdings, Kolosus, Edgars Cons Stores, Truworths and Sanlam, while the worst performers were Namibia Sea Products, Nictus, Mutual and Federal, CIC Holdings and Namibian Fishing Industries.International markets, said IHN, continued to struggle with six out of the eight indices declining.The Namibian Stock Exchange also outperformed the local index for the first time this year, with IHN attributing this to strong performance from resource, financial and retail counters.The South African equity performance was boosted by the currency and financial counters, with the resource and gold counters managing to turn around amid a weaker rand and improved commodity prices.The All Share Index closed at all time high of 11 761.IHN said the best Namibian performers during the quarter were African Portland Industrial Holdings, Kolosus, Edgars Cons Stores, Truworths and Sanlam, while the worst performers were Namibia Sea Products, Nictus, Mutual and Federal, CIC Holdings and Namibian Fishing Industries.International markets, said IHN, continued to struggle with six out of the eight indices declining.