Capitec [JSE: CPI] lost another 20% of its value in opening trade on Thursday. It is now trading at R650 from almost R1 500 towards the end of last year.
The share started bleeding on Wednesday, losing 28% in a single session. Since 19 December, Capitec has lost more than R80 billion of its value.
Capitec was trading at more expensive levels than other banks and discounted strong growth, which is now under threat, an investment analyst told Fin24. Other financial shares were also under pressure, with PSG down more than 30%.
FirstRand was down 18% to R35.29, while Standard Bank plunged 10% to R107.61. Nedbank fell 25% to R95. Sanlam lost 14% to R50.32 and Old Mutual was down 3% to R11.39.
The financial sector is under pressure as investors worry about the impact of a stalling economy and rocketing bad debts during the coronavirus crisis. Capitec was hit hardest because it was trading at more expensive levels than other banks and discounted strong growth, which is now under threat, an investment analyst told Fin24.
As the oil price slumps to 17-year lows, Sasol gave up another 16% to around R30. Brent crude oil was around $26 a barrel.
But after a 7% loss on Wednesday, the JSE's all share index managed to stay in the black on Thursday. Kumba was up 12% and British American Tobacco rose 6%.