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As buying interest returns to the Johannesburg Stock Exchange (JSE), shares in top performing financial services groups such as Capitec Bank, Standard Bank, and Absa Bank have increased by double digits in recent weeks, delivering impressive gains to shareholders like Michiel Le Roux, who have portfolio investments in the country’s financial services industry.
According to research conducted by Billionaires.Africa, Le Roux, a South African billionaire who founded Capitec Bank more than 20 years ago and grew it into one of the world’s most reputable banking brands, has seen the market value of his 11.36-percent stake in the group exceed $1.7 billion.
As one of the shareholders who benefited from a recent scramble for shares in financial services groups on the JSE, the billionaire, who sits on the bank’s board of directors, has recorded an impressive $149-million surge in the value of his stake in the past 16 days.
Since the start of August, the market value of his 11.36-percent stake in Capitec has risen from $1.59 billion to $1.74 billion, owing to renewed investor interest that pushed Capitec shares on the JSE to R2,167.72 ($131.88), up from R1,981.8 ($120.57).
On Tuesday, buying interest on the JSE, particularly in mining, industrial, and financial services firms, drove the JSE all-share index to its highest level since late May, as investors continued to rebalance their portfolios as buying pressures increased.
Analysts believe investors will not see the steep decline in investments that they saw in the second quarter of 2022, as market sentiment has changed, with many market participants reassessing their position.
That belief is rooted in the high degree of volatility in the shares of South African companies, which has impacted investor wealth. This volatility is the result of various circumstances, such as the start of hostilities between Russia and Ukraine, widespread global inflation, and a hawkish approach toward interest rates around the world.
