Shares in Absa Group fell by about 9.5% in afternoon trade on the JSE yesterday after the financial institution warned of a plunge in headline earnings for the half year period to the end of June.
Absa stocks opened trade yesterday 5% weaker in early morning trade before proceeding to weaken further during intraday trade.
Analysts had expected Absas stocks to pare some of its value following the release of a trading update on Wednesday that reflected lower interim earnings for the period to end June.
We expect Absa Groups headline earnings to decrease by mid to high single digits in the first half of 2024, with earnings expected to decline by high single digits to low double digits, the banking group, with operations in South Africa and the region, said on Wednesday.
As yesterdays trade session wore on, losses in the companys shares climbed. At 4pm, Absa was trading 9.48% lower, at R153.87 per share.
