FBNH Rises to N682bn on ‘Special Stock Bet’

FBNH Rises to N682bn on ‘Special Stock Bet’

Who is ramping up FBN Holdings shares? On Thursday, FBN Holdings Plc (Ticker: FBNH) saw a spike in its market value, surging above N682 billion amidst large, unusual volume traded by its shareholders.

Data from the Nigerian Exchange showed that there was a significant increase in demand for the group’s shares yesterday. FBNH shares worth about N88 billion exchanged hands, pushing the Holdco’s share price higher to keep the momentum intact.

Despite a slump in the banking index, FBNH reported about a 3% daily gain as 4.69 billion of its shares were traded on the floor of the Nigerian Exchange after the midweek rally.

As a result of buying weight, FBNH popped higher by 2.7% to N19 per share.

The Holdco share price has continued to maintain an uptrend ahead of the second quarter earnings season. Analysts are projecting that the group will improve on dividend payments in 2023 – given its new market valuation.

According to the group’s audited report, the financial services Holdco has 35.892 billion outstanding shares in the local bourse, of which its largest single shareholder, Femi Otedola, owns 5.57%.

The audited report signified that Otedola sold off a significant part of its direct shares in the group, the Holdco’s audited financial statement for 2022 reviewed by MarketForces Africa showed.

FBNH’s stock market narrative changed since Otedola’s strategic shares acquisition via an open market deal conducted by APT Securities and Fund Limited last year. Having the billionaire investor in the boardroom support market positive sentiment, some equities analysts told MarketForces Africa.

Rather than earnings or any special market advantages, analysts believe sentiment remains a major catalyst driving the uptrend in FBNH share price. On Thursday, FBNH shares traded in the local bourse accounted for 86.19% of the total volume of trades conducted in the market.

Data from the Nigerian Exchange obtained by MarketForces Africa showed that FBNH was the most traded stock in value terms, accounting for 92.43% of the total value of trades on the exchange.  Meanwhile, the special volume; and value traded only pushed the financial service group valuation up by 2.7%. 

In 2021, FBNH paid shareholders paid 35 kobo as a final dividend despite its stronger earnings record. In 2022, the group declared 50 kobo despite its profit downturn. At the close of the trading session, the financial services group market value surged to N682 billion.#FBNH Rises to N682bn on ‘Special Stock Bet’ Nigerian Treasury Bills Yield Rises to 7%