why is capitec share price dropping

Royal Dutch Shell Stock Price Forecast, RDS-A stock price prediction. was trading at R180 a share , which represented almost 3 time sits underlying NAV (or sum of parts). This means it would remain the single largest shareholder in Capitec and would ensure it retains much of the valuable dividend flow.

PSG remains a well-run business, that generates value for investors”.“Obviously,” says Viljoen, “PSG is sensitive about the criticism, hence the unbundling.

We’ve recently seen the failure of African Bank, rising concerns about Capitec and other lenders, and the credit rating downgrade of the Big-4 South African Banks. Those on the right side of that trade – and there is a suggestion there were more than a handful – would’ve made a fortune in recent weeks. On the other hand, the Capitec share price will most likely decline, as its shareholding base fragments. Could the Bloomberg article be a figment with malicious intent?There are no answers, only conspiracy theories.

Capitec shares drop 5% following “fake-news” PSG Group has confirmed that its board “is in the process of investigating, and is seriously considering, the potential unbundling of some or all of its shareholding in Capitec Bank Holdings”. Charl Nel, head of communications at Capitec Bank, has pointed to a smear campaign aimed at ruining the bank’s image and dropping its share prices. Capitec share price also increased by 16% for the year, whilst shareholders enjoyed a 26% growth in dividends. We have a good relationship with the NCR and discuss issues of a mutual interest.”Upon identifying the report released by Bloomberg, Capitec released a statement vehemently denying the allegations, saying:“Capitec Bank has taken note of the blatant, misleading and untruthful media commentary by Bloomberg News Service. One thing is certain though; Capitec has a fight on its hands, and when fighting over billions of rands, expect it to get dirty.Oppo is reportedly working on a LiFi enabled phone after a smartphone patent and LiFi utility patent was approved in...TheSouthAfrican.com is all about South Africa and the stories that affect South Africans, wherever they are in the world.Help support journalists, the guardians of independent journalism, through our Banks will remain open during the 21-day nationwide lockdown. In some quarters, this was greeted as confirmation of the “worst-kept secret” on the JSE.PSG says its “rationale for the potential unbundling” is twofold: One, that “certain new legislation may potentially deem PSG Group (as a material shareholder in Capitec) to be a financial conglomerate, which will substantially increase the administrative burden on PSG Group (in relation to regulatory compliance)”; and Two, “given the substantial discount at which PSG Group shares trade to its sum-of-the-parts value, the board believes such an unbundling may unlock value for PSG Group shareholders”.After initially selling Capitec down (as the market had following the cautionary), both shares were up 4% in mid-morning trade.PSG Group CEO Piet Mouton highlighted the regulatory burden last week, saying that while the group had historically believed that being listed was important as, amongst other things, this incentivised management, increased red tape meant that “many more companies would opt to operate in an unlisted environment”.
Clark makes the point that “additional liquidity in Capitec right now wouldn’t exactly engender the stock?” Last week, Clark questioned whether the Reserve Bank South African would even allow an unbundling, given the current economic environment. This storyline has now also been repeated by other news organisations that feed from Bloomberg’s distribution.”Charl Nel, head of communications at Capitec Bank, has pointed to a smear campaign aimed at ruining the bank’s image and dropping its share prices.The Bloomberg report was enough to spread panic amongst shareholders and investors, leading to a 5% drop in share prices on Tuesday.This isn’t the first time the retail bank has had to fight off allegations of over-indebting customers. “Globally, investment holding companies are currently viewed quite negatively – even Berkshire Hathaway is trading at a discount to its NAV. Four shares that have fallen more than most today are listed below. PSG specifically has come in for a lot of criticism, as most of what they own is listed, so investors can replicate their holdings almost perfectly. Anthony Clark of Small Talk Daily Research notes that since just before Easter, Capitec is down 17% while PSG Group is up 20%.

Photo: Sipho Maluka/Sunday Sun/Gallo Images/Getty ImagesKuben Naidoo, SARB’s deputy governor and registrar of banks, has denied allegations pertaining to a probe of the bank’s loan schemes.“I don’t know why what was reported was reported. Those on the right side of that trade – and there is a suggestion there were more than a handful – would’ve made a fortune in recent weeks.The effect of this, says Clark is that the discount to PSG’s sum-of-the-parts value per share has narrowed from 36% to 19%, as “PSG perked itself up and Capitec was nailed”.

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why is capitec share price dropping