Rich Young Minds win NSX Investment Challenge
Young traders celebrated
The Namibian Stock Exchange (NSX), in partnership with Old Mutual, Future Media and the Financial Literacy Initiative, hosted the Namibian Scholars Investment Challenge (NSIC) Award Ceremony in the capital earlier this week.This year’s challenge was launched in March, with the aim of introducing university and secondary school students to stock trading and creating an understanding of commercial dynamics in the macro-economic environment.
The NSIC gave students a fictitious amount of N$500 000 each to invest on the NSX from April to September 2022. The top five teams were rewarded with cash prizes from Old Mutual, with the overall best-performing team winning a grand prize of N$50 000.
Approximately 600 teams from across Namibia’s 14 regions had the opportunity to trade listed shares on the NSX, with the Rich Young Minds team emerging victorious with a return of 100.6%. They were followed by The Big 43 in second place, with a return of 94.3% and who walked away with N$30 000. The Finance Moguls placed third with a return of 42.7% and received a cash prize of N$20 000, followed by the Buffetiers in 4th place who received N$10 000 and had a return of 26.9%, while the Desert Fox team received N$5 000 and had a return of 10.6%.
Starter pack
To enable the participants to trade, each team received a starter pack consisting of basic information and a glossary on financial terminologies. The participants were equally tasked with doing research and applying analytical skills to make good investment decisions with the goal of increasing the value of their portfolio by the end of the trading date.
The keynote speaker at the award ceremony, was Tassius Chigariro, Old Mutual Group chief executive. “As a financial services provider with dual listings on the JSE and NSX, it is imperative for Old Mutual to help build capacity and skills which is in line with this year’s theme of Financial Education for Youth: The Role of Corporate Namibia,” he shared.
Chigariro applauded the teams for their dedication and urged them to never underestimate their talent and the endless possibilities available to them.
He continued by saying “the art of investment stock market trading is made up of incredible complexities that are learned over time. Creating a platform for the Namibian youth through the NSIC to bridge the knowledge gap in a fun and innovative manner that puts participants in direct contact with how the macro-economy functions, speaks to the forward-thinking nature of the Old Mutual Namibia business.”
Speaking at the event, Tiaan Bazuin, NSX chief executive, pointed out that “we have been running the competition for the past 20 years with schools and the last couple of years with universities competing in the same competition as well. It has always been a financial literacy initiative project. The idea is that the institutions get involved to get the students to learn something completely out of their comfort zone. For this year, we had some of the best returns that we have ever seen in the competition and students really applied their minds.
“Despite the market not performing at its best, the teams performed beyond what we could imagine, and each of the team members can be extremely proud of what they did.”