Select Page

Trustco shares take back most of the 2018 gains, losing 52% during February

Trustco shares take back most of the 2018 gains, losing 52% during February

Trustco shares are on the retreat. Since its lofty highs in January, the share has lost more than half its value during February, wiping out roughly N$8 billion in shareholder value.

Trustco Group Holding Ltd, listed on the main board of the Johannesburg Securities Exchange in the Speciality Finance division, posted an enormous rally in the second semester of 2018. From just more than N$6 per share, it had a meteoric rise, posting more than 100% gains for shareholders just before year end.

At the beginning of January this year, Trustco shares hit an unprecedented N$16 per share after the company announced an extensive refinancing deal late in 2018. This momentum was carried for about three weeks, the share still trading at N$13.50 at the beginning of February. Volumes were however very thin and it was the exception when three deals were registered in a single day.

From there Trustco has continued to lose ground, hitting N$7.01 on Monday this week.

According to the statutory announcements on the Stock Exchange News Service (SENS), several directors sold Trustco shares during January including the financial director, the chairman of the board, two non-executive directors and group Managing Director, Dr Quinton van Rooyen as part of the N$1 billion refinancing deal announced in October last year.

Trustco has a current market capitalisation of N$7.39 billion but its share trades at a price earnings ratio of almost 25. In comparison, Nictus, the other Namibian company listed on the JSE has a market capitalisation of only N$46 million but trades at a P/E ratio of only 11.


About The Author

Daniel Steinmann

Educated at the University of Pretoria: BA (hons), BD. Postgraduate degrees in Philosophy and Divinity. Publisher and Editor of the Namibia Economist since February 1991. Daniel Steinmann has steered the Economist as editor for the past 32 years. The Economist 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 It is the first Namibian newspaper to go fully digital. He is an authority on macro-economics having established a sound record of budget analysis, 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 hundreds of journalism students as interns and as young professional journalists. From time to time he helps 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. Since October 2021, he conducts a weekly talkshow on Radio Energy, again for a lay audience. On 04 September 2022, he was ordained as a Minister of the Dutch Reformed Church of Africa (NHKA). Send comments or enquiries to [email protected]