Feeling unsecured: Capitec’s wild ride
Capitec’s share meltdown has shaken even those hardened to the market’s collapse. The panic may be overdone
Wild swings in Capitec Bank’s share price last week have investors fretting about whether the unsecured lender is uniquely exposed to a perfect storm — a worsening domestic recession coupled with the Covid-19 pandemic that’s forcing business activity to grind to a halt.
Capitec’s share price lost as much as 28% on March 18 and a further 14.69% the very next day, only to rebound by more than 42% on March 20.