The shares dropped 4.2 percent to 20.11 naira by the close in Lagos, Nigeria’s commercial capital, the biggest decline since June 21. Guaranty advanced 9.6 percent yesterday, reaching 20.98 naira, the highest since at least January 2002, when Bloomberg began tracking the stock.
“Guaranty overshot the 20 naira psychological price yesterday so we expected investors to begin to harvest their gains today,” Abiola Rasaq, a Lagos-based analyst at Vetiva Capital Management Ltd., said by phone today. “We see the stock stabilizing at between 19.20 naira and 19.30 naira” by year- end, he said.
The Nigerian Stock Exchange chose Guaranty and 15 other stocks as trial securities in market-making activities that began Sept. 18. The bourse raised their daily price movement limit to 10 percent, from the 5 percent that applies for all other stocks.
First-half profit at Guaranty jumped 66 percent to 45 billion naira ($286 million), the lender said Aug. 30.
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