First HoldCo Plc Experiences Significant Market Value Decline
First HoldCo Plc has seen its market value decrease by over 10% during the past seven trading sessions on the floor of the Nigerian Exchange (NGX), settling at ₦933 billion as of Friday.
This decline comes as investors reduce their positions in the financial services group.
Investors’ sentiments remain cautious as the market awaits the group’s audited financial report for the 2024 fiscal year and potential dividend announcements.
In a regulatory filing, First HoldCo disclosed that its board will review the group’s audited report during a meeting scheduled for March 21.
The delay in releasing the audited earnings report and dividend information has limited bargain-hunting activity, causing First HoldCo’s market valuation to fluctuate below ₦30 per share.
On Friday, First HoldCo’s share price dropped to ₦26, with more than 4.743 million units valued at ₦125.134 million changing hands. Throughout the past seven trading sessions, First HoldCo has experienced more investors selling their banking stocks than buyers looking to establish positions ahead of first-quarter earnings reports.
The share price declined from ₦28.90 to ₦26 over seven trading sessions, pushing its market value below the ₦1 trillion mark. Despite this decline, several securities firms see upside potential for First HoldCo, as its shares currently trade more than 25% below their 52-week high.
Trading history indicates that First HoldCo has shown greater volatility than its competitors. At its current price, First HoldCo is the only Tier-1 banking group valued at less than ₦1 trillion.
Additionally, it remains the only financial services group in the top category that has yet to release audited financial statements or announce dividends to shareholders. According to its unaudited report for 2024, the group reported a net income of ₦736.734 billion, representing a substantial 140% increase from the ₦308.433 billion reported in 2023.
