Investment in Guaranty Trust Holding Company (GTCO) has been on a decline in 2022, as the bears controlled trading on the floor of the creditor ahead of the board of directors’ meeting this month.
The capital market had been pricing the stock of Guaranty Trust low, indicating investors believe investment in GTCO would turn negative as the bank prepared to decide on its 2021 Full Year Audited Financial Statements and Dividend.
Amid this bear sentiment in the bourse, holders of GTCO shares lost N17.65 billion during five days of trading last year, representing 2.32% of their investment in the lender.
According to Ripples Nigeria analysis, Year-to-date shareholders investment in the seventh most capitalised company in NGX dip by 3.07% year-to-date, representing a total loss of over N23.54 billion.
With the market being pessimistic towards investment in GTCO, the year-to-date loss has sent shareholders total investment in the bank down the hills, settling at N741.66 billion.
This was below the N765.21 billion market capitalisation Guaranty Trust started January with. During the two weeks period, GTCO stock price had been pegged at N25.2kobo per share as of January 14, in contrast to the N26 it sold for December 31, 2021.
Note that the expectation of financial statements usually have an influence on investors in the capital market, and since GTCO announced on December 29, 2021, that the board will be meeting to deliberate on FY 2021 financials, investors confidence in the lender’s stock growth dropped.
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