Tunisian multimillionaire investor Khaled Fakhfakh has seen the market value of his stake in Arab International Bank of Tunisia (BIAT) decline by TND3.1 million ($1.08 million), as shares in the Tunisia-based bank retreated from a record high price of TND64.5 ($22.53).
Fakhfakh, the North Africa managing director of IEG Investment Banking Group, a leading global investment banking group with investments in the Internet and technology sectors, holds a beneficial 1.42-percent stake in BIAT.
His stake in BIAT amounts to 506,940 ordinary shares in the leading financial services group, which operates as the first bank in Tunisia, Africa’s fourteenth largest economy.
In addition to its core banking operations, the banking group maintains active operations through its subsidiaries in the fields of insurance and asset management.
As of press time, Nov. 16, shares in the bank were trading at TND58.38 ($20.46), one-percent higher than its opening price this morning.
Since Sept. 27, the bank’s stock has declined from TND64.5 ($22.53) to TND58.38 ($20.46) per share as of the time of writing, which translates to a 9.5-percent loss for the shareholders.
The decline in the bank’s shares caused the market value of Fakhfakh’s stake to decline from TND32.7 million ($11.4 million) to TND29.6 million ($10.3 million), accruing a total loss of TND3.1 million ($1.08 million) for the Tunisian investor.
Despite the million-dollar decline in his stake, Fakhfakh ranks among the top 20 richest investors on the Tunis Stock Exchange.
The recent decline in the bank’s shares was spurred by investor reaction to the negative outlook Moody’s Investors Service affirmed four Tunisian banks, including BIAT.
The U.S. rating organization downgraded the long-term bank deposit ratings of Amen Bank, Arab Tunisian Bank, Banque de Tunisie and BIAT to Caa1 from B3.
The drop in the banks’ ratings can be linked to the difficult operating environment for banks in Tunisia, coupled with the weakening credit profile of the Tunisian government.
Despite difficulties in its operating environment, BIAT posted a net profit of TND742.5 million in the first nine months of 2021, while its outstanding deposits improved to TND15.23 billion.
