The furniture retailer's balance sheet was burdened by climbing bad loans and restructuring within the group.
The struggling retailer's shares rose on news that it had found a buyer for its loan book, allowing it to focus on its retailing and product range.
The Reserve Bank has placed the sinking lender under curatorship in a bid to save investors.
Head of the country's largest unsecured lender, Leon Kirkinis, has stepped down with immediate effect as the bank plans a capital increase.
African Bank says holders of its debt cannot ask for an early repayment of its bonds, despite being downgraded to "junk" status last week.
The clothing retailer looks to bolster sales by enabling pressurized consumers to buy more on credit.
A major hedge fund is shorting shares in the unsecured lender in expectation of further declines.
A larger than expected loss has not phased investors who believe better days are ahead for the countries largest unsecured lender.
The unsecured lender's interim results show a loss of R4.4-billion as its customers struggle to repay loans.
African Bank Investments aims to raise R4-billion through a Goldman Sachs rights offering and the sale of furniture retailer Ellerines.
Capitec has been fairly unscathed by the ailing economy, but wont be spared in the slowdown in the unsecured lending market.
South Africa's biggest unsecured lender is rated highly despite increasing bad debt
After winning the jury prize at the Cannes Film Festival in 2010, Mahamat Saleh Haroun went home to Chad — and kindled a cinematic renaissance.
The JSE continued on its upward path by midday on Thursday, unaffected by surprisingly better PPI data but encouraged by the futures market close-out. By 1158am, the JSE's all-share index had improved 0,83%. The platinum mining index climbed 3%, and the gold mining index added 0,94%,
The JSE was lower at midday on Tuesday, playing catch-up after the public holiday on Monday when there was weakness in global equity markets. By 12.04pm, the JSE's all-share index had pulled back 2,38%. The gold mining index fell 3,31%, resources lost 3,21% and the platinum mining index gave up 3,16%.
The JSE started to show a slight turnaround on Monday as a renewed announcement by BHP Billiton added some buying interest among resource stocks. By midday, the JSE's all-share index lifted 0,3% as resources collected 0,79%. However, the gold and platinum mining indices pulled back 0,91% and 1,4% respectively.
South Africa's biggest mass-market lender, Abil, increased headline earnings per share for the year to end-September by 20%, and said on Monday it was confident of reaching its financial goals in the current financial year. African Bank Investments Limited said headline EPS was 268,4 cents while headline earnings rose 20% to R1,334-billion.