Shares of Tier-One Lender Guaranty Trust Bank (GTB) hit a one-month low in early trading today as bulls stayed on the sidelines amid a lack of clarity on earnings prospects for lenders going forward.
Banks have been squeezed lately by a combination of the coronavirus pandemic fallout and a rash of regulatory actions including cash reserve ratio deductions by the Central Bank of Nigeria (CBN) that could crimp earnings.
Guaranty Trust Bank was trading down 2.06 percent to N21.40 as at 2.pm Nigerian time.
The stock has returned -28 percent in the past year.
MoneyCentral in an article published last week titled failure to launch, had advised investors that GTB was set to test the N21 per share support level, following its inability to crack overhead resistance at N25 per share.
GTB is now trading below the 50-day and 200-day moving average and we see the next support at the N20 per share mark.
Investors can begin to nibble on the shares at N20 although a breach of that level could see it drop much lower into the N17 level.