FBNH Sees Surge in Investors’ Positioning Despite Earnings Delay
Based on the previous pattern, unknown hands are mopping up FBN Holding Plc shares, pushing its market price higher despite no new information about the group earnings performance or outlook.
Broadstreet elephant branded financial services group, FBN Holdings is gaining popularity among value hunters trading highs and lows on growth stocks in the Nigerian Exchange.
Their attention has shifted to FBNH share, reinforcing successive positive price movement despite earnings delay – a key signal that drives momentum, especially in the banking sector.
Large equities investors’ positioning has forced a fresh stock market rerating and the group valuation jumped to about N433 billion. What is driving share purchase is not clear at the moment as there is no notification of new development.
In Oct 2022, the market had valued FBNH at N440 billion, a handsome uptrend from the bottom of the pyramid in the Tier 1 group; to joining rank as one of the top 10 stocks on the local bourse.
However, selloffs by unimpressed shareholders dragged the financial service holding s company downward, trading below N400 billion mark.
the financial services group has been on rallies. Analysts told MarketForces Africa that value hunters are positioning ahead of the earnings release.
The Broadstreet elephant announced a plan to release its audited financial statement and its first-quarter results concurrently this month. A good earnings outturn will likely drive the price higher further, and the share price will moderate if the momentum is weak.
Data from the local exchange last week show that FBNH’s share price has increased from N10.85 kobo to N11.45 kobo in the last seven trading sessions, pushing its market cap above N411 billion yesterday as value hunters take positions.
The company has gained 7.01%, helped by its 5.53% gain in the local bourse this week. On average, equities analysts have a target price of N12.80 for the group share price. With the recent popularity among buy-side investors, the elephant could easily shatter the price target.
MarketForces Africa reported that FBNH market valuation has printed much higher at N440 billion after a strategic share accumulation by Femi Otedola in 2022 – an entry point created by the boardroom game.
On earnings expectation, equities analysts proffer diverged opinions after the Broadstreet elephant’s earnings beat in the third quarter.
MarketForces Africa reported that FBNH raised its bar in terms of profitability performance and there are questions on whether the Elephant will sustain its latest dancing steps. # FBNH Sees Surge in Investors Positioning Despite Earnings Delay