Picture: GETTY IMAGES
Picture: GETTY IMAGES

The share price of banking group Capitec surged as much as a third on Friday, recovering from a recent sell-off that the bank says was partly caused by automatic trading. 

Capitec’s share price dropped as much as 28% on Wednesday, with the price extending losses by a further 14.69% on Thursday.

Capitec said in a statement on Thursday that international traders motivated by the continued weakening of the rand had sold the bank’s shares on Wednesday, leading to a drop in price.

As the share price dropped, algorithms used by professional traders prompted the automatic disposal of the shares, it said.

Capitec’s share price rose to as much as R913.32 on Friday, trading 27.91% up at R873 at 1.30pm. At the same time, the JSE’s banking index was up 5.9% and the all share 5.5%.

Capitec’s share price has fallen 39% so far in 2020, while the index has fallen 43%.

Correction: March 20 2020
An earlier version of this article incorrectly reported Capitec’s share price as reaching a high of R88.48. We regret the error.

With Katharine Child

gernetzkyk@businesslive.co.za 

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