Guaranty Trust Bank (GTBank) shareholders lost over N80 billion in three days as some investors engaged in profit-taking, thereby, dragging the lender’s market value down this week. This was seen while tracking the bank’s market activities.
The financial firm had started the week with N905.01 billion, but the company has been recording a high share dump among its shareholders looking to cash-in on past gains, and this is having a negative impact on the market’s capitalisation.
As some of the company’s shareholders part with their shares, investors interested in purchasing the bank’s shares are pricing it low, and existing investors are willing to sell cheap.
This means the stock market is undervaluing GTBank’s shares. Between Monday, March 15, 2021, to Wednesday, March 17, 2021, the lender’s market capitalisation fell from N905.01 billion to N824.07 billion.
Within the three days period, deposit money bank’s existing shareholders lost over N80 billion. This shows the level of investors’ confidence in GTBank, which has been losing value in share price since the beginning of March.
The company’s market value started crumbling after it stock price hit N31.70 kobo per share on Wednesday, March 3, 2021, rising from N31.50 kobo per share on Tuesday, but had started the month with N31 per share.
But since the stock price rose to N31.70 kobo per share, the stock has lost N3.7 kobo in its share value in the past two weeks and three days, having ended the stock market at N28 per share.
The sell-off among GTBank shareholders came at a period the lender is preparing to release its full-year financial statements. While other banks had released their earnings report for the period ended December 31, 2020.
Investors’ confidence seems to be dropping in anticipation of the audited financial statements for full-year 2020 which still doesn’t have a release date yet.