10 Inside BUSINESS Monday, February 12 2018 | NEW ERA Stocks’ drop brings scrutiny of complex low-volatility bets NEW YORK Wall Street’s plunge has brought scrutiny to complex niche products to trade on volatility that market experts believe were poorly structured and exacerbated swings in stocks. Only days before markets began to go haywire, Barclays chief executive Jes Staley warned about the risky investments at the World Economic Forum in Davos. Many investors were using the exchange-traded products to place bets that volatility would stay low or go down, a “very smart” wager during a period of persistently low volatility, Staley said. “But if this thing turns, hold on to your hat,” he added. That change took place on Monday as the Dow Jones Industrial Average was in the midst of a more than 1,000 point drop that included a violent 800-point dive in the blue-chip index over 10 minutes. During that period, the CBOE Volatility Index, known as the “VIX” index, also shot higher. That shift spelled instant losses for “short-vol” trading vehicles, including exchange traded products by Japanese bank Nomura and Credit Suisse that had predicted volatility would go down, known as a “short” investment. Because the VIX is known unofficially as Wall Street’s “fear” index over possible bad future outcomes, a sudden surge likely contributed to the brutal losses in the equity markets. Short bets on volatility had become a popular stance, outnumbering trades that anticipated a rise in volatility and in one case earning a return of almost 200 percent in 2017, according to a note from Goldman Sachs. “Hedge funds, prop traders, retail investors... everybody was on the same exposure,” said Brett Manning, senior market analyst at Briefing.com. “It worked really well for a long time.” But the investment suddenly went south when markets turned sharply on February 2, when a surprisingly strong US jobs report sparked worries about inflation. “Everybody was on the same side of the trade,” said Manning. “Hedge funds started to move out and people started to panic to cover these investments.” Conditions worsened this week, leading both Credit Suisse and Nomura to liquidate their funds amid heavy losses. In the aftermath of the turbulence, Fidelity Investments halted trading on exchange traded funds that bet on low volatility. While it’s impossible to know the exact losses, the market was estimated at between billion and billion, a small part of the overall market for exchange traded products, a growing type of investment that is traded on exchanges and based on assets, such as stocks, commodities or indices. The investments were widely known in the financial world as failure-prone because of the tendency of markets to eventually become volatile. Credit Suisse even warned in its prospectus that the “long-term expected value” of the investment is “zero.” “The main purpose was to be an insurance but people started buying and selling it in sort of a casino fashion,” said FTN Financial chief economist Chris Low. Regulators are now looking more closely at the vehicles. Swiss regulators are following up with Credit Suisse, and New York Federal Reserve President William Dudley pledged more scrutiny of the products. Asset manager BlackRock called for a “regulatory classification system that would label levered and inverse exchange traded products differently than plain-vanilla (ones) in order to clarify for both regulators and investors the risks associated with those products.” One consequence of the week’s shakeout is that the products in question have been “significantly defanged,” making a repeat performance of the February 5 chaos unlikely anytime soon, said a note from Bank of America Merrill Lynch. - Nampa/AFP BURSARIES VACANCIES Opportunities for Vocational Training NamPower, an equal opportunity employer, supports the development of Namibian youth and therefore invites applications for VOCATIONAL TRAINING BURSARIES from Namibians who wish to pursue vocational studies at the NamPower Vocational Training Centre in Windhoek, towards artisan status in the following fields: • ELECTRICAL ENGINEERING (ELECTRICAL GENERAL) • MECHANICAL ENGINEERING (FITTING AND TURNING) ELIGIBILITY REQUIREMENTS: (LEVEL 1 BURSARY) • Namibian citizenship • Aged between 18 and 24 years • Successful candidates will be subjected to a general medical check-up • Satisfactory outcome of aptitude assessment • Grade 12 Certificate, with minimum C symbol (NSSCO) or 4 symbol (NSSCH) passes in: - Mathematics - Physical Science - English The closing date for applications is 23 February 2018 ENQUIRIES Mr. P. Viviers, Tel. (061) 205 2591 (Electrical) Mr. J. Mieze, Tel. (061) 205 2593 (Mechanical) Application forms are available at NamPower Head Office, NamPower Regional Offices and on our website (http://www.nampower.com.na). Female candidates are encouraged to apply. Only shortlisted candidates will be contacted. NamPower (Pty) Ltd, an equal opportunity employer, invites candidates who are passionate about the Electricity Supply, Industry and with an uncompromising standard of excellence, to a career in the industry. BOILERMAKER, VAN ECK POWER STATION Primary Purpose of the Position: The incumbent will be responsible for the construction, assembly, maintenance and repair of stationary steam boilers and boiler house auxiliaries. SENIOR ENGINEERING ASSISTANT: INSTRUMENTATIONS, VAN ECK POWER STATION Primary Purpose of the Position: The incumbent will be responsible for calibrating, installing, repairing and maintaining all instruments installed in power stations and substations at NamPower. The incumbent will be further responsible for taking part in related projects. SENIOR ENGINEERING ASSISTANT: PLC & SCADA, VAN ECK POWER STATION Primary Purpose of the Position: The incumbent will be responsible for ensuring the effective operation of PLC and SCADA systems installed in power stations. If this is appealing to you, please visit our website www.nampower.com.na for more information, and to submit your application. Alternatively you can also email HR.Recruitment@nampower.com.na In return for your skills, NamPower offers a generous remuneration package and attractive fringe benefits in line with the seniority of the position. Closing Date: 23 February 2018 KINDLY NOTE: APPLICATIONS FOR FIELDS OF STUDIES OTHER THAN THE ONES MENTIONED ABOVE WILL NOT BE CONSIDERED. THE DECISION OF THE NAMPOWER BURSARY COMMITTEE AS ENDORSED BY THE MANAGING DIRECTOR IS FINAL, AND NO CORRESPONDENCE WILL BE ENTERED INTO. NB: FEMALE CANDIDATES ARE ENCOURAGED TO APPLY. ONLY SHORTLISTED CANDIDATES WILL BE CONTACTED AND NO PERSONAL DOCUMENTS WILL BE RETURNED.
Monday, February 12 2018 | NEW ERA Inside BUSINESS 11 MTC restores Leonardville tower Staff Reporter Windhoek MTC has fully restored the Leonardville base transmitter station after it collapsed in October last year. MTC has conveyed its appreciation and gratitude to the community of Leonardville, especially the farmers’ union leadership, for their patience and understanding during the last two months. Furthermore, MTC extended words of thanks to all the stakeholders that rendered their support and services, whilst MTC technicians and contractors were on site ensuring the normalization of network services to the Leonardville site, “We wish to say thank you our partners, whilst construction and re-erection of the fallen base transmitter station was ongoing, who provided network support services during the time,” said Tim Ekandjo, MTC’s chief human capital and corporate affairs officer. The Leonardville BTS is a shared site that also serves as the transmitter station for other radio and telecoms operators in the area. Development finance travels north-eastern highway Staff Reporter Windhoek De velopment Bank of Namibia (DBN) Senior Manager: Corporate Communications, Jerome Mutumba, has been visiting regional capitals of northeastern Namibia in order to stimulate demand for development finance. The visits began in Rundu on February 5, continued to Nkurenkuru on February 6, and ended on February 9 in Katima Mulilo. Talking about the regions, Kavango West, Kavango East and Zambezi, Mutumba says they hold significant opportunity for development, in terms of infrastructure and enterprise, however he notes that demand for finance can be strengthened, based on demand from local authorities and entrepreneurs. Mutumba says that calls for finance from the regions are low in relation to their potential for economic activity. He illustrates this with the fact that, since inception, there has been no call for finance for tourism and hospitality. This flies in the face of the combination of tourism and hospitality potential, and the bank’s ability to provide tailored finance, which is flexible, and meet the needs of the tourism industry in other regions of Namibia. The same, he says, is true of other sectors. In reaching out to the north-eastern regions, Mutumba said the bank not only showed its capacity to provide finance, but also challenged entrepreneurs to come forward with their business plans to translate them into operational opportunities with the aid of DBN finance. The bank, he says, seeks not only greater levels of economic activity spread across the regions, but also a spread of sectoral activity. The three regions, Mutumba says, are connected by the Kavango River, and this offers opportunities for coordination of activities that the bank may finance. Tourism might explore and further develop the river as a travel route, which can add value to tourism in the three regions. He also points to the riverine fishing industry, which is a source of fish regarded as a delicacy in many restaurants across Namibia. This, he says, indicates the need to explore potential for processing and packaging the fish. Mutumba added that Nkurenkuru is a particular hotspot for development. As a recently proclaimed regional capital, the centre offers numerous opportunities for further development. This includes excellent possibilities for tourism and hospitality, wholesale and retail, and social enterprises such as private schools and private medical facilities. On the topic of infrastructure finance for north-eastern Namibia, Mutumba said the bank is one of the central agencies tasked with contributing to development of infrastructure. In this light, he encourages local authorities in Zambezi, Kavango East and Kavango West, to approach the bank. The construction of a road, he noted, stimulates well-being and enterprise at either end, and at all the centres alongside it. Servicing of land, and construction of housing, are important elements in the quest to improve social well-being, he continues. Local authorities can draw on the bank’s expertise in the field of infrastructure financing as a pathway to development. Mutumba concluded that local authorities and entrepreneurs should view the bank as a partner in achieving the goals of development of their respective regions. In order to develop the three regions, the bank sees potential for cooperation and, consequently, expects more applications from the regions. ENVIRONMENTAL IMPACT ASSESSMENT (EIA) FOR DEVELOPMENT OF THE OKOMUTATI CAMP SITE, EHI-ROVIPUKA CONSERVANCY, KUNENE REGION. Public Consultation Notice in line with Section 21 of Regulation No. 30, under the Environmental Management Act (No. 7 of 2007), related to the EIA for the development of the Okomutati Camp Site. Tetra CC appointed KPM Environmental Consulting as the independent Environmental Assessment Practitioner to carry out the EIA. Notice is hereby given of the Public Consultation Process. Should you wish to be informed or comment on the proposed project and EIA, please contact us by Friday 23 February 2018. Tel. +264 81 809 8896 E-mail: firstname.lastname@example.org NOTICE ENVIRONMENTAL IMPACT ASSESSMENT (EIA) PROPOSED CONSTRUCTION OF FUEL RETAIL FACILITY AT WILHELMSTAL, ERONGO REGION & INVITATION TO A PUBLIC MEETING Tortoise Environmental Consultants (TEC) hereby notifies all Interested and Affected Parties (I&APs) that an application for an Environmental Clearance Certificate will be submitted to the Environmental Commissioner, in accordance with the provisions of the Environmental Management Act (No. 7 of 2007) and EIA Regulations (GN 30 of 2012) as follows: Project Name: Construction of a Fuel Retail Facility Proponent: Premier Tech Investment cc Project Location: Portion 11 of Farm, Wilhelmstal #8 Public Meeting Date: Saturday, 03 March 2018 Venue: Farmer’s Association Office, Wilhelmstal Time: 10H00 – 12h00 Deadline to submit comments: 10 March 2018 Tortoise Environmental Consultants (TEC) One step @ a time To register as an I&AP and obtain the BID, please submit your details to TEC at: Tel: 081 256 7709 Email: email@example.com MARKET OVERVIEW Money Market Change Latest Selected NSX Stock 3 months 0.00% 7.13% Symbol Stock Name Spot % Move 6 months 0.00% 7.59% CGP CAPRICORN INVESTMENT GROUP L 1802 0.00% 9 months 0.02% 7.73% NBS NAMIBIA BREWERIES LTD 4000 0.00% 12 months 0.01% 7.99% BVN BIDVEST NAMIBIA LTD 785 0.00% Bonds Change Latest FNB FNB NAMIBIA HOLDINGS LTD 4658 0.00% GC18 (R204 : 7.03%) 0.01% 7.94% ORY ORYX PROPERTIES LTD 2060 0.00% GC21 (R208 : 7.3%) 0.01% 8.12% NAM NAMIBIAN ASSET MANAGEMENT LT 69 0.00% GC24 (R186 : 8.44%) 0.01% 9.66% NHL NICTUS NAMIBIA 189 0.00% GC27 (R186 : 8.44%) 0.01% 10.05% BMN BANNERMAN RESOURCES LTD 40 5.26% GC30 (R2030 : 8.93%) 0.01% 10.60% DYL DEEP YELLOW LTD 231 -1.70% GC32 (R213 : 9.01%) 0.00% 10.72% SILP STIMULUS INVESTMENT LTD-PREF 12129 0.00% GC35 (R209 : 9.33%) 0.01% 10.76% FSY FORSYS METALS CORP 110 -4.35% GC37 (R2033 : 9.14%) 0.01% 11.14% TUC TRUSTCO GROUP HOLDINGS LTD 890 0.00% Commodities %Change Latest B2G B2GOLD CORP 3458 3.10% Gold -0.32% $ 1,314.60 Platinum -0.17% $ 970.96 Copper 0.00% $ 6,845.00 Brent Crude 0.25% $ 64.26 Main Indices %Change Latest NSX (Delayed) -0.36% 1333.91 JSE All Share -1.40% 55,843.91 SP500 -3.75% 2,581.00 FTSE 100 -0.86% 7,108.99 Hangseng -3.10% 29,507.42 DAX -1.58% 12,066.51 JSE Sectors %Change Latest Financials -1.23% 17,299.65 Resources -1.07% 34,956.20 Industrials -1.65% 72,548.75 Forex %Change Latest N$/US dollar -0.56% 12.1001 N$/Pound -1.17% 16.7293 N$/Euro -0.65% 14.8057 US dollar/ Euro -0.09% 1.2236 Namibia Monthly Data Latest Previous Namibia Inflation (Dec 17) 5.2 5.2 Bank Prime 10.50 10.50 BoN Repo Rate 6.75 6.75 9-Feb-18