Cirrus Capital has stated that in the calendar year 2023, Namibian government bonds returned 17.4% on the back of substantial spread compression.
Cirrus Capital, which focuses on corporate advisory, capital raising and research said spreads declined by an average of 119bps across the curve, with the most notable declines across the long end of the curve (GC37 – GC50), down on average 214bps.
In the review of the Namibia Stock Exchange, Cirrus Capital said amongst the primary listed shares on the NSX, Standard Bank Namibia was the best performing in 2023, with a total return of 114%, whilst Paratus Namibia was the worst performing, down 7.7%.
Top performing securities in 2023 were Standard Bank Namibia +114%, followed by FNB Namibia +79.5%. Worst performing was the palladium Exchange Traded Funds.
Looking at asset class returns in Namibia for 2023, the firm said NSX Local Shares were the top performing asset class in 2023, with a total return of 42.3%. Namibian Government bonds delivered 17.4%. Worst performing asset class was the Overall Index, up 5.8% for the year.
In the Calendar Year 2023, Namibian government bonds returned 17.4% on the back of substantial spread compression. Spreads declined by an average of 119bps across the curve, with the most notable declines across the long end of the curve (GC37 – GC50), down on average 214bps.
Increased demand for Namibian debt was driven by a material change in the long-term outlook for the country, following discoveries of offshore oil and gas, improving economic and fiscal prospects, record levels of Foreign direct investment (FDI), and high levels of liquidity, averaging N$ 8.2 billion in 2023.
