FirstRand stock slide erases millions from Johan Burger’s portfolio

Omokolade Ajayi -
Key Points
  • Johan Burger's stake in FirstRand has dropped by R54.49 million ($3.03 million) after a 12.21% decline in share price over 70 days.
  • FirstRand’s stock decline from R86.89 ($4.841) has reversed Burger's previous gains, dragging his stake below $24 million.
  • Despite recent underperformance, FirstRand has delivered a modest 3.77% return for local investors and a 5.66% gain for foreign investors.

South African businessman Johan Burger, Chairman of FirstRand, has seen a significant decline in the market value of his stake in the leading lender, following a 12.21 percent drop in share price on the Johannesburg Stock Exchange (JSE) over the past 70 days.

Burger, who holds a 0.09-percent stake in FirstRand—equivalent to 5,136,000 ordinary shares—has recorded a loss of R54.49 million ($3.03 million) over the past 70 days, dragging the market value of his stake in FirstRand below $24 million.

Stock decline weighs on Burger’s holdings

FirstRand shares, which traded at R86.89 ($4.841) on Sept. 10, have fallen to R76.28 ($4.250), affecting the market capitalization of the Sandton-based lender, which now sits below $24 billion. The downturn in FirstRand’s share price has affected Burger’s stake, which had previously risen in value.

Between June 6 and July 5, Burger’s stake increased by $4.83 million, from $20.6 million to $25.43 million. However, the recent drop in share price has reversed those gains.

Impact on investors

Despite the losses, Burger remains a key figure in South Africa's financial sector. FirstRand, which operates through its major divisions, including FNB, RMB, WesBank, and Aldermore, continues to hold a dominant position in the African financial services market.

For investors, FirstRand’s stock has underperformed in recent weeks. However, it has delivered a modest year-to-date return of 3.77 percent for local investors.

Foreign investors have fared slightly better, enjoying a 5.66 percent gain due to favorable currency fluctuations. For instance, a $100,000 investment made at the start of the year is now worth $105,660, reflecting a $5,660 increase despite the market volatility.