FBNH Sees 11% Increase in Market Value
FBN Holdings Plc (Ticker: FBNH) became investors’ toast in the stock market despite a massive run down on combined equities market capitalisation by bear traders.
FBNH has sustained an uptrend, though not bumps, thanks to better-than-expected 2023 earnings results and a bright outlook. The Nigerian Exchange closed negative with about N2 trillion weekly loss as a result of declining investors’ sentiments.
Most sectors were down at Broadstreet, except for boring ones like consumers and oil indexes. The Consumer goods popped higher by 2.01% and the Oil & Gas sectors surged by 0.01%.
On the other hand, the banking index declined by 2.10% due to a sell-off in some Tier 1 lenders. In the last seven trading sessions, the equities market has dropped by 4.4% over negative perception triggered by weak economic indices.
The financial service stock’s popularity lifted its share price to N28; data from the local exchange showed. At the end of the trading session, the market increased the market value of FBN Holdings Plc to N1.112 trillion, spread over its 35.895 billion shares outstanding.
In the tier-1 bank category, FBNH is still the only lender that has released its earnings results for the final quarter of the financial year 2023. There is an expectation that more results will pop into the market in the new week as Q1-2024 enters the last lap in a few days.
The bank’s fourth-quarter profit exceeded analysts’ expectations, thanks to a strong net interest margin supported by the apex bank’s hawkish pose on interest rates.
While the stock market has rerated banking stocks, analysts are predicting a correction is perhaps looming due to the large overprice of some listed companies’ stocks.
In the coming days, a decision by the apex bank policy committee on interest, and liquidity rates will shape the minds of local investors.
Earnings releases from listed companies are back in the spotlight in the new week. The pace of corporate earnings releases is slowing, but there are still a few things in the calendar, the CBN is still moving its sticks around. #FBNH Sees 11% Increase in Market Value
