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After making millions of dollars in profits in the first three months of 2021, South African business executive Alan Pullinger has seen the market value of his stake in Africa’s leading financial services group FirstRand Limited fall by R69.25 million ($4.35 million) in the past 80 days.
The $4.35-million drop in the market value of his stake in FirstRand Limited can be attributed to the sudden decline in the shares of the leading financial services provider from an all-time high price of R77.75 ($4.9) on March 29.
Pullinger, the CEO of FirstRand Limited, Africa’s largest financial services group in terms of market capitalization, owns about 0.1 percent of the leading lender, or 5,634,679 ordinary shares.
Shares in the South African financial services group were worth R65.46 ($4.12) per share as of press time on June 17, 1.67-percent lower than their opening price on the local bourse this morning.
The market value of Pullinger’s 0.1-percent stake has fallen from R438.1 billion ($27.56 million) to R368.8 billion ($23.2 million) at the time of writing this report, resulting in a total loss of R69.25 million ($4.35 million) for the multimillionaire businessman in the 80 days since March 29, when the bank’s shares closed at a record high price of R77.75 ($4.9) per share on the Johannesburg Stock Exchange.
The multimillion-dollar drop in his stake is due to a drop in the bank’s share price from R77.75 ($4.9) on March 29 to R65.46 ($4.12) at the time of writing this report, resulting in a 15.8-percent loss for shareholders.
FirstRand Limited recently announced that it expects its headline earnings per share and normalized earnings per share to increase by more than 20 percent for the fiscal year ending on June 30, 2022.
This follows improved loan demand, higher net interest income as interest rates rise, and higher insurance premiums collected by its businesses, all of which have put FirstRand on track to deliver a double-digit increase in profits this year.
