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The stake of Kenyan businessman Baloobhai Patel in Absa Bank Kenya Plc has increased by Ksh45.97 million ($424,600) in 84 days on the back of a rise in the bank’s share price.
Absa Bank Kenya is one of the leading banks in Kenya and an operating subsidiary of Absa Group Limited, a South Africa-based financial services group.
Shares in the bank have been rising since early May, as investors buy up shares in anticipation of an impressive financial performance this year as the Kenyan economy revs up for recovery.
Current trends in consumer spending triggered a bullish bias, as customers use their discretionary savings for critical expenditures as they did before the pandemic.
As of press time 3:00 PM (UTC), July 23, shares in the bank were trading at Ksh9.86 ($0.0911) per share, 2.07-percent higher than its opening price of Ksh9.66 ($0.0892) for the year.
The bank’s shares have increased from Ksh8.78 ($0.0811) on April 30 to Ksh9.86 ($0.0911) per share as of July 23. This translates to a 12.3-percent gain for shareholders in 84 days as investors and bargain hunters acquire more stakes.
Patel is one of Kenya’s wealthiest citizens. The successful businessman holds key stakes in blue-chip stocks that pay regular dividends and have a tradition of steady price appreciation.
Aside from stakes in Bamburi Cement, Carbacid Investments, Diamond Trust Bank Group and Safaricom, Patel holds a 0.78-percent stake (about 42,565,720 ordinary shares) in the leading Kenyan bank.
The market value of his 42,565,720 ordinary shares in Absa Bank Kenya has increased from Ksh373.73 million ($3.45 million) on April 30 to Ksh419.70 million ($3.88 million) as of the time of drafting this report.
Research conducted by Billionaires.Africa revealed that his 0.78-percent stake in the Kenyan bank had accrued a total gain of Ksh45.97 million ($424,600) in 84 days.
