A reassessment of stock market integration in SADC: The case of Namibia

Figures & data

Table 1. Characteristics of selected African securities markets, 2008.

	No. of firms	Traded volume (‘000)	Traded value US$m	Mkt. Cap US$m
Panel 1: Selected SADC markets
Namibia
Dual listed	16	247 640.31	1182.31	93 579.70
Local listed	10	26 711.53	18.13	898.85
Development board	4	17 412.09	4.73	296.67
Botswana
Foreign listed	4 (7)	17 065.60	–	42 010.10
Domestic listed	19 (1)	176 242.50	11 666.40	4066.00
Venture Capital	1	4267.00	7.58	79.81
Zambia
Dual listed	1	–	–	–
Local listed	19	1 640 040.61	108.50	1217.84
Quoted board^a	9	159.01	0.01	52.21
Malawi
Dual listed	1	487.14	–	1788.39
Local listed	12	607 526.59	59.71	13 081.65
Mauritius
Dual listed	0	0.00	0.00	0.00
Local listed	40	211 349.38	312.75	3495.94
Development board	47	97 997.10	3.64	115 935.00
Panel 2: Integrated African markets
BRVM
Overall	41	2984.65	214.65	4393.35
Cote d’Ivoire^b	36	2515.00	97.27	2129.18
Senegal	1	448.60	115.69	2116.80
Niger	1	6.02	0.41	15.62
Benin	1	15.08	1.12	64.52
Togo	1	–	–	–
Burkina Faso	1	0.00	0.17	67.23
Egypt
CASE Overall (Matched trades)	333	21 919 567	81 259.00	–
Cairo
Buy Orders	–	21 116 776	79 601.70	–
Sell Orders	–	21 191 768	79 730.60	–
Alexandria
Buy Orders	–	802 791	1657.37	–
Sell Orders	–	727 799	1528.46	–

Source: National exchange websites and Bloomberg; NSX Annual report 2008 for Namibia.

Note: Values in parentheses for Botswana indicate venture capital companies.

^aIndicates that of 10 quoted firms 5 have achieved this status through the privatisation and restructuring of a single former mining parastatal ZCCM.

^bIndicates that 33 of the 36 Ivorian listed firms are headquartered in Abidjan.

Table 2. Namibian stock market new issues, 1999–2008.

Firm	Listing date	Instruments listed	IPO amount raised	Amount raised (N$)	Dual listing	NSX market segment	Evolution of listing
Air Namibia 15%	29/04/1999	Parastatal bond	220 000 000	–	Local	Debt	Redeemed 29/04/2004
Anglo-American	04/06/2001	Ordinary shares	–	–	UK/ South Africa	Main	Share buy-back scheme: 19/07/06
JD Group Ltd	28/08/2001	Ordinary shares	–	–	South Africa	Main	Delisted: 03/05/2005
Metropolitan Holdings	21/09/2001	Ordinary shares	–	–	South Africa	Main
Standard Bank Namibia 12%	15/11/2001	Corporate bond	150 000 000	–	Local	Debt	Maturity: 20/11/2011
Shoprite Holdings	25/10/2002	Ordinary shares	–	–	South Africa	Main
Oryx Properties	04/12/2002	Linked Units	41 088 918	205 444 590	Local	Main
Namibian Government 12.50%	15/04/2002	State bond	1 195 860 000	–	Local	Debt	Redeemed 15/07/2007
Namibian Government 13%	15/04/2002	State bond	1 409 970 000	–	Local	Debt	Maturity: 15/04/2015
Edgars Cons Stores Ltd	17/09/2003	Ordinary shares	–	–	South Africa	Main	Delisted: 25/05/2007
MICC Property Holdings Ltd	10/10/2003	Ordinary shares	–	–	South Africa	Main	Suspended: 16/05/2006
Stimulus Investments Ltd	03/11/2004	Preference shares	–	123 680 000	Local	Main
Road Fund Administrators 13%	19/10/2004	Parastatal bond	350 000 000	–	Local	Debt	Maturity: 29/11/2010
Bank Windhoek 11%	04/02/2004	Corporate bond	100 000 000	–	Local	Debt	Maturity: 04/02/2014
Namibian Government 8.50%	19/01/2005	State bond	582 200 000	–	Local	Debt	Redeemed 15/07/2008
Namibian Government 10.50%	19/05/2005	State bond	333 000 000	–	Local	Debt	Maturity: 15/10/2012
Trustco Group Holding	27/09/2006	Ordinary shares	133 475 000	427 120 000	Local	Main	Dual Primary Listed on JSE
Standard Bank Namibia 9.65%	07/07/2006	Corporate bond	100 000 000	–	Local	Debt	Redeemed 07/07/2009.
Standard Bank Namibia 10%	07/07/2006	Corporate bond	216 000 000	–	Local	Debt	Maturity: 07/07/2011
Standard Bank Namibia 10%	20/11/2006	Corporate bond	150 000 000	–	Local	Debt	Maturity: 20/11/2016
Standard Bank Namibia 10.49%	07/07/2006	Corporate bond	100 000 000	–	Local	Debt	Maturity: 07/07/2016
Road Fund Administrators 9.50%	31/08/2006	Parastatal bond	330 000 000	–	Local	Debt	Maturity: 31/01/2016
Nedbank Group Ltd	23/02/2007	Ordinary shares	–	–	South Africa	Main
Vukile Ltd	11/06/2007	Ordinary shares	–	–	South Africa	Main
Xemplar Energy Corp.	24/10/2007	Ordinary shares	–	–	Canada	Dev. Board	Listing motivated by acquisition of mineral exploration rights
Forsys Metals Corp	14/12/2007	Ordinary shares	–	–	Canada	Dev. Board	As above
Deep Yellow Ltd	23/01/2008	Ordinary shares	–	–	Australia	Dev. Board	As above
Paladin Energy Limited	14/02/2008	Ordinary shares	–	–	Canada/ Germany	Main	As above
Bannerman Resources Ltd	02/04/2008	Ordinary shares	–	–	Australia	Dev. Board	As above
Namibian Government 9.50%	19/06/2008	State bond	80 000 000	–	Local	Debt	Maturity: 15/07/2018

Source: Compiled by authors from data procured direct from Namibian stock exchnage (NSX) in 2009.

Table 3. Namibian secondary equity market, 1992–2009.

	Panel 1: Equity market									Panel 1: Debt market
	Overall market			Local market			Development market			State (via BoN)	State (via NSX)			Corporate (via NSX)
	N	MCap (US$m)	Traded Value (US$m)	N	MCap (US$m)	Traded Value (US$m)	N	MCap (US$m)	Traded Value (US$m)	Cumulative Outstanding (US$m)	N	Cumulative Outstanding (US$m)	Traded Value (US$m)	N	Cumulative Outstanding (US$m)	Traded Value (US$m)
1992	4	1147.09		3	8.39
1993	6	2008.44	0.02	4	12.52
1994	14	5195.05	7.75	8	92.67
1995	23	9271.55	30.88	10	91.74
1996	29	10 126.20	89.44	12	294.93	23.49
1997	38	20 607.20	120.14	12	446.59	14.92
1998	40	21 221.30	138.07	15	334.87	11.29
1999	41	44 461.10	268.25	14	566.96	19.72				562.89	3	319.75	1.61	1	1.62	–
2000	36	44 943.30	332.59	14	313.70	19.86				620.32	3	216.68	2.31	1	1.1	–
2001	37	68 126.60	270.31	14	240.34	8.30				708.82	3	162.28	3.87	2	13.18	0.93
2002	35	51 478.30	183.78	12	230.08	1.80				842.83	4	373.75	32.15	2	17.69	0
2003	35	61 291.20	271.19	11	273.49	2.44				1079.52	4	504.75	61.8	2	23.9	1.47
2004	32	76 412.20	379.15	9	294.53	15.04				1376.81	4	644.96	75.48	2	43.23	1.33
2005	28	102 471.00	448.32	9	350.19	4.65				1398.86	7	698.39	232.74	4	69.29	10.12
2006	28	148 136.00	894.01	11	508.64	16.22				1417.41	6	585.07	126.51	8	126.73	5.13
2007	25	1 186 365	1450.30	7	636.59	18.69	2	928.99	0.03	1165.11	5	427.72	136.63	8	128.95	10.57
2008	26	98 098.20	1211.19	10	761.62	18.29	4	688.26	4.14	–	7	497.16	70.75	8	93.16	1.33
2009	33	136 363.00	1160.41	7	948.83	24.52	7	3116.12	1.75	–	6	548.59	170.81	7	116.87	17.18

Source: Compiled by authors from Namibian Stock Exchange.

Notes: N is number of listings; MCap is market capitalisation and traded value, where both are denominated in US$ millions; State includes parastatals (include Air Namibia, Road Fund Administrators and Nam Power) as well as State (Government includes various maturities between 3 and 20 years); Corporate include Bank Windhoek, FNB and Standard Bank Namibia; Finally State (via BoN) indicates Government Treasuries, short and long term maturity bonds issued through auction via Bank of Namibia.

Table 4. Ownership, governance and activity in the Namibian local market over the millennium.

	African Portland Industries	CIC Holdings	FNB/ FNK Namibia	Gendor	Namibia Harvest Invest	Namibia Breweries	Namibia Sea Products	Oryx Properties	PEP Namibia	Stimulus Invest	Trustco Group Holdings
Panel 1: Ownership in 2001
No. Shareholders	133	880	884	224	338	1302	1834	–	683	–	–
No. holders >3%	6	7	2	7	7	3	4	–	3	–	–
No. holders <1%	124	863	882	217	331	1298	1829	–	680	–	–
Top 3 owners holding (%)	61.04%	60.46%	96.37%	58.77%	70.23%	87.79%	72.15%	–	96.90%	–	–
Block holders	34.17%	71.05%	96.37%	74.51%	57.72%	90.18%	85.96%	–	96.90%	–	–
Directors/ Insiders	9.59%	7.23%	–	–	–	–	–	–	–	–	–
PE/ VC	43.59%	–	–	19.39%	35.10%	–	–	–	–	–	–
Free Float (%)	12.65%	21.72%	3.63%	6.10%	7.18%	9.82%	14.04%	–	3.10%	–	–
Activity measures, 1998–2002
Bid-Ask spread (%)	39.43%	26.22%	12.09%	28.08%	19.72%	5.91%	24.53%	–	17.87%	–	–
Zero Return (%)	97.99%	90.82%	87.09%	96.44%	90.52%	79.61%	89.79%	–	93.41%	–	–
Volume (‘000)	447	587	368	1672	793	868	253	–	110	–	–
Panel 2: Ownership in 2007
No. Shareholders	Delisted	578	2484	Delisted	312	1197	Delisted	225	Delisted	27	2871
No. holders >3%	–	5	3	–	7	4	–	7	–	7	4
No. holders <1%	–	572	2480	–	305	1192	–	215	–	20	2867
Top 3 owners holding (%)	–	83.74%	88.71%	–	73.58%	87.33%	–	72.91%	–	94.18%	91.13%
Block holders	–	91.09%	88.72%	–	70.39%	93.24%	–	65.08%	–	89.25%	24.27%
Directors/ Insiders	–	–	–	–	–	–	–	–	–	–	69.86%
PE/ VC	–	–	–	–	22.60%	–	–	17.36%	–	8.49%	–
Free Float (%)	–	8.91%	11.28%	–	7.01%	6.76%	–	17.56%	–	2.26%	5.87%
Activity measures, 2003-9
Bid-Ask spread (%)	–	29.77%	–	–	39.05%	18.93%	41.25%	7.65%	–	–	25.18%
Zero Return (%)	99.86%	95.79%	–	–	97.53%	88.86%	85.10%	96.73%	–	–	91.67%
Volume (‘000)	6160	1970	–	–	719	497	368	209	–	–	1605

Source: Compiled by authors from Namibian stock exchange Transfer Secretaries (Pty) Ltd, and from Bloomberg, Datastream and National stock exchanges.