LOCAL asset managers are encouraging Namibian companies operating in the information and communication technology, agriculture, industrial, healthcare and energy sectors to list on the Namibian Stock Exchange (NSX) this year.
Hinted companies include Namibian Packaging, Pupkewitz, which has received the most nominations, Lady Pohamba Private Hospital, Namib Mills, FabuPharm, Gondwana Collection Namibia, which has received the second-most nominations, NamPower, and NamPharm.
Nominations were made through a Simonis Storm Securities survey conducted among local asset managers.
According to the survey's results, the asset managers are not in favour of another financial company or institution listing this year.
The survey aimed to observe expectations of Namibia's investment climate for the year ahead, with the overall market, asset class, and general economic expectations as considerations.
Local managers indicated they are expecting slow economic growth as the biggest risk for Namibia, followed by social discontent and political instability.
Looking at return expectations for 2022, the majority of managers expect growth of between 6% and 10% on the NSX, 5% and 10% on local government bonds, 5% and 10% on local property, 5% and 6% for cash/money market rates, and between 5% and 10% for gold bullion.
The polled asset managers indicated they would be looking at value shareholding, followed by growth and momentum when considering stocks on the Johannesburg Stock Exchange (JSE) and global markets.
More than half (62%) of managers believe banking on cheap stocks to outperform growth stocks remains a valuable investment proposition.
No one vouched for stay-at-home shares (companies providing technology services and online retailers benefiting when people work remotely), Simonis' report read.
The asset managers indicated that FirstRand had the most attractive local stock on the NSX, with Oryx as having the least-preferred stock.
Paying special dividends excelled among preferred corporate actions among managers, followed by expansions in Namibia, and holding onto cash and waiting.
Furthermore, 53% of managers agree that environmental, social and governance (ESG) considerations should influence strategic decisions of locally listed companies, whereas 27% see ESG pressure coming from investors, and 20% see ESG more as a mandatory requirement than a personal choice.
Regarding the Namibian economy in 2022, the majority of managers see the rand-United States dollar exchange rate at N$16,01 to N$16,50, with inflation to be between 4% and 5%, and a possible interest rate hike of between 50 and 75 basis points.
Furthermore, Simonis' report indicated that asset managers expect global oil prices to average at US$71 and US$80 a barrel, while private sector credit extension is expected to average between 3% and 4%.
National output growth (gross domestic product) is expected to be between 3% and 4%.
According to the poll's results, about 70% of managers do not believe the government's green hydrogen strategy would deliver economic growth, citing execution or implementation concerns, lack of funding and human capital, distance to export markets, limited job creation, and diverting focus away from more pressing matters, such as food security.
On the other hand, 30% believe green hydrogen would bring economic growth, although they still raised concerns, which included other projects to be considered, and not being sure if the average man on the street would benefit from it.
Asked if they would invest in the green hydrogen project as part of their unlisted investment mandate, 57% of managers said they would not, and 43% said they would.
