FirstHoldco Loses N2.50trn in Market Value as Euphoria Fades
FirstHoldco Plc’s 45.475 billion outstanding shares were priced down to N5.002 trillion as investors continue to exit their positions in the financial services company over fading buying euphoria.
FirstBank of Nigeria Limited’s non-operating holding company has lost N2.5 trillion since last month, when it hit a 52-week high on the stock market.
According to trading data on the Nigerian Exchange (NGX), FirstHoldco’s share price fell more than 33.33% from its peak, even after a strong Q3 profit report, suggesting investors are ignoring the news.
Equity analysts said shareholders and equity investors who bought ahead of earnings have been taking profits, with no fresh catalysts to sustain the price rise.
Its price downturn mirrored shareholders’ risk-off sentiment despite expectations of a significant dividend payout in 2026.
FirstHoldco Plc lost about 12.4% on the NGX in the last seven days as the buying wave that drove it to record highs gave way to profit-taking.
Strong results, weak reaction
The earnings were strong. FirstHoldco reported month pre-tax profit of N911.24 billion, up about 61%. Third-quarter pre-tax profit rose 22.5% to N257.71 billion, and profit after tax rose 35.5% to N218.32 billion.
The financial services company’s cost-to-income ratio improved to 43.7% from 52.4%, helped by lower credit impairment charges. Net interest income fell, signalling pressure on returns from core lending.
How the rally built
The stock began 2026 at N47.90 and has more than doubled since. It reached N165 last month, helped by chairman Femi Otedola’s N18 billion share-buying spree, and became the NGX’s most valuable bank stock, overtaking Zenith Bank and Guaranty Trust Holding Company (GTCO).
FirstHoldco had hit an all-time high of N165 per share, but it has become a resistance point, uneasy to breach despite a bumper earnings harvest.
Investors who took part in January’s private placement, priced at N32.50 a share, are sitting on large paper gains. The market’s reaction to a strong 60% dividend payout triggered a sharp re-rating that has now fizzled out.
FirstHoldco still has a healthy year-to-date gain. Whether it deepens depends on whether buyers return once the earnings-driven selling runs its course. #FirstHoldco Loses N2.50trn in Market Value as Euphoria Fades# FirstHoldco Slumps 17.31% as Pre-Earnings Buyers Cash Out
