The equity stake of Ghanaian magnate and investor Daniel Ofori in CAL Bank Limited has dropped in value by $370,047 (GH₵2.15 million) since April 30.
The decline in the value of his stake can be attributed to the profit-taking activities of retail investors who exited positions in the bank after shares climbed to a 52-week high of $0.14 (GH₵0.84) on April 23.
As of press time, 7:40 am (UTC+1), June 22, CAL Bank shares traded at $0.120 (GH₵0.70), putting the bank’s market capitalization at $73.19 million (GH₵438.61 million).
The profit-taking activity, which decreased the market value of the bank’s shares by 16.7 percent, was spurred by its lukewarm performance in Q1 2021, despite a resilient financial performance in 2020.
In Q1 2021, CAL Bank posted a revenue of $29.10 million (GH₵169.31 million) and a profit after tax of $9.18 million (GH₵53.46 million).
These results compare to a revenue of $26.01 million (GH₵151.31 million) and a profit after tax of $8.42 million (GH₵49.00 million) in Q1 2020.
However, the increase in the company’s risk exposure, coupled with the decline in returns on shareholder equity and group assets, led wary investors to take home their profit and sell down their shares in the bank.
In reaction, the bank’s shares on the Ghana Stock Exchange declined from $0.144 (GH₵0.84) per share on April 30 to $0.120 (GH₵0.70) as of press time, 7:40 am (UTC+1), June 22.
Ofori, one of the bank’s leading shareholders with an ownership stake of 2.45 percent, has seen the value of his stake decline by 17 percent in reaction to the fall in the company’s shares.
Ofori’s 15,377,194 ordinary shares have declined in value from $2.22 million (GH₵12.92 million) on April 30 to $1.85 million (GH₵10.76 million) as of press time, 7:40 am (UTC+1), June 22. This translates to a loss of $370,000 (GH₵2.15 million) for the Ghanaian business magnate in 52 days.