CapeTown – Capitec lost yet another 20% of its value in the opening trade on Thursday. Moving down from almost R1 500 towards the end of last year, it is now trading at R650.
The share started showing signs of bleeding on Wednesday when it lost 28% in a single session. The bank has lost over R80 billion of its value since December 19.
Capitec has, over the years, been trading more expensive than other banks. The growth they’ve had is currently under threat, said an investment analyst to Fin24. It seems Capitec was not the financial share under pressure, with the PSG down more than 30%.
Standard Bank was down 10% toR107.61, while FirstRand was down 18% to R35.29. Sanlam was at 14% to R50.32, while Nedbank fell 25% to R95 and Old Mutual was down 3% to R11.39.
The financial sector is currently under a lot of pressure, investors are worried about the impact of a stalling economy and bad debts during the coronavirus crisis. Unfortunately for Capitec, they were the hardest hit as they were trading at more expensive levels than other banks. Their discounted strong growth is also under great pressure.