First Holdco Sees 18% Valuation Surge on Clear Dividend Policy Bets
Tracking its 52-week high after a significant price move, First Holdco Plc extended its rally on the Nigerian Exchange (NGX) with an 18% weekly gain, according to trading data.
First Bank of Nigeria’s non-operating holding company drove momentum in the stock market last week, pushing the banking index up 4.43%.
Stock market analysts reported a sharp rotation into banking stocks, and First Holdco topped a slew of value hunters’ preferences despite the ongoing Dangote Refinery initial public offering.
Market data showed that First Holdco inched higher to N160 per share on the NGX following heavy trading volume led by buy-side actors on Friday.
The market recorded 23.795 million in First Holdco shares valued at N3.703 billion, driving the share price to N160 on Friday. Stock traders were significantly active on First Holdco, with strong all-week volume momentum that lifted its share price from N136 to N160 at the close of the trading session.
First Holdco has become the Tier-1 leader in stock market performance, with more than N7 trillion in total market capitalisation. The company began an accelerated repricing in July after publicly disclosing its new dividend policy.
Management declared a 60% payout ratio on the Nigerian Exchange, a decision that drew the attention of investors seeking dividend-paying banking stocks to First Holdco.
At the close of trading last week, the market value of First Holdco Plc, with 45.475 billion shares outstanding on the local bourse, edged up 17.65% to N7.276 trillion. First Holdco is now less than 2% away from its 52-week high. Naira Rate Weakens on Liquidity Squeeze, FX Spread Widens
