Selloffs has knocked out about 31% of market value of Guaranty Trust Holdings Company Plc (GTCO) to N1.097 trillion on Friday, according to data from the Nigerian Exchange (NGX).
The company, however, experienced yet another wave of pessimism in the stock market, with a 6.75% decline over the previous seven trading sessions and a closing price of N37.3 per share on the local exchange.
The equity market ended last week with bearish activities spanning three out of five trading sessions. Following the notice from the apex bank regarding the recapitalization of local deposit money banks, the performance of the banking index has stayed negative.
According to information gathered from the local exchange, it is only GTCO that has market valuation above N1 trillion in the banking sector. FBN Holdings has lost a seat at the top while Zenith bank is struggling with its comeback party.
The banking stock is trading at discount against its 52-week high. Due to its increased popularity among stock market investors, GTCO’s stock price increased to N53.95, the highest price it has been trading at in 52 weeks, while the lowest price was N26.75.
The banking group is still in the money for investors, shareholders that accumulated its shares at 52 week low of N26.75. Investors that took positions 12 months ago have seen more than 39% return at the current market price.
As economic dynamics switched, the market direction followed. Few stocks have been able to buck selling rallies trend. The opportunity for new entrants was nonetheless created by the lower prices, and it seems that some bargain hunters are taking advantage of GTCO in the hope that the company will survive the recapitalization program.
#GTCO’s Market Value Falls 31% Below 52-Week High Reforms: Fitch Revises Nigeria’s Outlook to Positive