First Holdco Slides, Investors Return Underperforms Benchmark
With 15.86% year to date return on investment in First Holdco Plc, the group has underperformed the Nigerian Exchange (NGX), suggesting the financial group has been more volatile than the broader market.
Investors are not holding First Holdco shares for long term before they sell down, and the volatility caused return on investment to keep trailing its rival’s performances.
Investors who bet N1 million naira on First Holdco in January would have a total of N1,158,600. If the same amount is put in Zenith Bank, investors would have N1,450,500 and GTCO would give investors N1,614,000 for the same amount.
“The weak year to date return delivered reflects the financial services group volatility compared to its peers. This suggests shareholders, investors constantly sell down shares in First Holdco over mistrust on its capability to boost wealth”, analysts said.
First Holdco has failed to gain market trust due to internal issues, activities of vested interest, weak earnings and assets quality and its huge exposure to forbearance.
The elephant branded financial services company’s trading data reflects volatility, which also attract mixed ratings from equity analysts across key investment banking firms.
Apel Asset Limited highlighted First Holdco has 21.25% upside potential at reference price of N32.50 versus analysts’ fair value estimate of N39.41.
First Holdco is placed on hold rating at Futureview Financial due to limited upside potential of 9.04% on the share at the reference price of N32.30 on Sept 1.
Hoping for 23.08% upside, equity analysts at Atlass Portfolio Limited set N40 target price for First Holdco at the reference price of N32.50 with buy rating.
In the just concluded week, First Holdco Plc closed lower at N1.352 trillion, details obtained from the Nigerian Exchange showed.
The oldest financial service group listed in Nigerian market has delivered 15.86% return on investment from the beginning of the year to date to shareholders.
The capital appreciation delivered by First Holdco is below 35.03% delivered by the Nigerian Exchange index year to date return. This week, the financial services company lost 0.63% of its market value on the back of soft profit taking activities.
At the close of trading session, First Holdco Plc.’s 41.877 billion outstanding shares on the Nigerian bourse were valued at N1.352 trillion, which is about 14% discount to its highest value achieved within the last 52-week. #First Holdco Slides, Investors Return Underperforms Benchmark#
