Kenyan banking tycoon Jimnah Mbaru has seen the market value of his stake in Britam Holdings Limited decline by Ksh159.74 million ($1.43million) in the past 62 days.
The recent loss in Mbaru’s stake can be linked to a single-digit drop in the share price of Britam Holdings, as investors and traders on the Nairobi bourse booked profits and readjusted their portfolios’ exposure after shares in the holding surged above the KSh8.3 ($0.0742) per share mark.
As of press time, Nov. 11, shares in the Kenya-based holding were trading at Ksh7.52 ($0.06721), six-percent lower than its market opening price of KSh8 ($0.07154) at the closing of the bourse on Nov. 1.
Britam’s stock price since Sept. 10 has fallen from Ksh8.34 ($0.0746) to Ksh7.52 ($0.06721) per share as of the time of writing, accruing a 9.83-percent loss for Mbaru, who controls a 7.72-percent stake, or 194,800,100 ordinary shares, in the financial services group.
As a result of the decline in the holding’s share price, the market value of his position has fallen from Ksh1.62 billion ($14.53 million) on Sept. 10 to Ksh1.46 billion ($13.1 million) on Nov. 11, accruing a loss of Ksh159.74 million ($1.43million) for the banking tycoon in two months.
The sentiment behind the decline in the share price is linked to investors stepping back from the company’s stock as its board prepares to publish its financial results for the first nine months of 2021.
The decision led to a Ksh2.07-billion ($18.5 million) decline in the market capitalization of Britam Holdings on the Nairobi Stock Exchange.
Research conducted by Billionaires.Africa revealed that the holding’s market capitalization has dropped from KSh21.05 billion ($188.21 million) to Ksh18.98 billion ($169.7 million) between Sept. 10 and Nov. 11.