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Trustco share price breaks out – offered shareholders 100% growth just before Christmas

Trustco share price breaks out – offered shareholders 100% growth just before Christmas

Trustco’s share price which took a severe beating in October 2018, has bounced back with unbelievable strength. It started a tentative rally on 06 November last year from a very low base of N$6.20 per share. Its rise was consistent and meteoric, reaching N$14.50 on 24 December, well above its previous best level of N$13.49 on 31 August 2018.

By 31 December, Trustco (TTO-JSE) has set a new all-time record of N$15.76 per share and then managed to gain a few more points by reaching N$16 last week Thursday. Since then its price has moderated slightly by about 5% to N$15.21 on Monday 07 January but not a single trade took place during the day. Monday’s price was still more than 150% higher than its 52-week low.

Trustco has had a rollercoaster 2018, starting the year at just below N$9 following a modest rally at the end of 2017. For the first semester of 2018 it meandered around the N$9 level before a minor rally in June which took it to N$12 on 29 June. The share corrected during the following two months but a major rally started in August and culminated in the previous record high of N$13.49 at the end of August last year.

In the month and a half after the previous record, Trustco’s share price collapsed, sinking to the low of N$6.15 by the middle of October. A second dip followed less than a week later but the share did not go below N$6.20.

At that time, the group Managing Director, Dr Quinton van Rooyen announced an extensive refinancing package, funded mostly by his private investment vehicle. This had the desired effect, allaying investors’ fears of a Trustco default due to its high debt load, and sending the stock on its year-end rally which essentially produced more than a 100% return in only one and a half months.


Graph from Sharenet, based on JSE trading data.


 

About The Author

Daniel Steinmann

Brief CV of Daniel Steinmann. Born 24 February 1961, Johannesburg. Educated at the University of Pretoria: BA, BA(hons), BD. Postgraduate degrees are in Philosophy and Divinity. Editor of the Namibia Economist since 1991. Daniel Steinmann has steered the Economist as editor for the past 29 years. The newspaper started as a monthly free-sheet, then moved to a weekly paper edition (1996 to 2016), and on 01 December 2016 to a daily digital newspaper at https://economist.com.na. His editorial focus is on economic analysis based on budget analysis, dissecting strategic planning and assessing the impact of policy formulation. For eight years, he hosted a weekly talk-show on NBC Radio, explaining complex economic concepts to a lay audience in a relaxed, conversational manner. He was a founding member of the Editors' Forum of Namibia. Over the years, he has mentored scores of journalism students as interns and as young professional journalists. He often assists economics students, both graduate and post-graduate, to prepare for examinations and moderator reviews. He is the Namibian respondent for the World Economic Survey conducted every quarter for the Ifo Center for Business Cycle Analysis and Surveys at the University of Munich in Germany. He is frequently consulted by NGOs and international analysts on local economic trends and developments. Send comments to [email protected]