First Holdco Shrinks, Market Value Falls 17% in 3 Days

First Holdco Shrinks, Market Value Falls 17% in 3 Days

First Holdco Plc dropped by more than 16.78% in three days due to aggressive selloffs by the company’s shareholders in the stock market. The financial services company’s negative performance aligned with broader sentiment in the Nigerian Exchange.

The share price fell to N58.25 as 20.073 million units of First Holdco, valued at N1.222 billion, were traded on the Nigerian bourse on Wednesday, according to data from the Nigerian Exchange.

The banking group became a casualty of profit-taking amid the overall market correction, which has lasted for three consecutive trading sessions.

First Holdco had recorded fast-and-furious rallies independent of its earnings performance, which was unimpressive. However, the previous rally was fueled by sentiment as the single largest shareholder continues to ramp up their stake in the elephant-branded financial services group.

For the last three days, the market has been doing away with such sentiment, as investors now look more closely at earnings trajectories, dividend histories, and profitability outlooks.

Most of the sell-offs were initiated by investors whose First Holdco failed to fit their portfolio profile, capital appreciation, and dividend targets. 

At the close of the trading session on Wednesday, the market value of First Holdco Plc’s 44.453 billion outstanding shares on the Nigerian bourse reduced to N2.589 trillion.

First Holdco is now trading at a 28.87% discount to its 52-week high. The group’s share price had surged to N81.90 before it began to decline amid negative sentiment.

Fitch Ratings has recently affirmed First HoldCo Plc’s and its main operating subsidiary, First Bank of Nigeria Ltd. (FBN), Long-Term Issuer Default Ratings (IDRs) at ‘B’ with stable outlooks.

It also affirmed their National Long-Term Ratings at ‘A+(nga)’, reflecting the expectation that, following a breach of the minimum regulatory total capital adequacy ratio (CAR) requirement since the end of 2025, capital compliance will be restored by the end of the third quarter of 2026.

Fitch expects CAR restoration to the regulatory level to be supported by strong internal capital generation and impending core capital raisings.

The group capital breach resulted from the withdrawal of longstanding regulatory forbearance, which led to a large increase in prudential provisions on oil and gas loans, according to Fitch.

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