By Boluwatife Oshadiya | June 4, 2026
Key Points
- First Holdco shares have declined 16.78% over the past three trading sessions
- The stock closed at ₦58.25, reducing the group’s market capitalisation to ₦2.59 trillion
- Analysts attribute the sell-off to profit-taking and a broader market correction
Main Story
First Holdco Plc has lost more than 16% of its market value in three trading sessions as investors intensified profit-taking activities amid a broader correction across the Nigerian stock market.
The financial services group’s shares fell to ₦58.25 on Wednesday, with approximately 20.07 million shares worth ₦1.22 billion exchanged on the Nigerian Exchange. The decline reduced the company’s market capitalisation to ₦2.59 trillion based on its 44.45 billion outstanding shares.
The sell-off follows a prolonged rally that pushed the stock to a 52-week high of ₦81.90, driven largely by investor optimism and significant accumulation by major shareholders. However, recent market sentiment has shifted as investors increasingly evaluate companies based on earnings performance, dividend history and long-term profitability prospects.
The stock now trades at a discount of approximately 28.87% from its one-year high.
Meanwhile, Fitch Ratings recently affirmed the Long-Term Issuer Default Ratings of First Holdco Plc and its principal subsidiary, First Bank of Nigeria Limited, at ‘B’ with a stable outlook. The agency also maintained their National Long-Term Ratings at ‘A+(nga)’.
Fitch stated that although the group breached the minimum regulatory capital adequacy requirement following the withdrawal of regulatory forbearance, it expects compliance to be restored by the third quarter of 2026 through internal capital generation and planned capital raising initiatives.
“We expect regulatory capital adequacy compliance to be restored by the end of the third quarter of 2026, supported by strong earnings generation and planned capital injections,” Fitch Ratings said in its latest assessment.
What’s Being Said
“The recent decline reflects a broader market correction rather than company-specific deterioration,” market analysts said following Wednesday’s trading session.
“Investors are increasingly focusing on fundamentals, earnings quality and dividend sustainability after months of sentiment-driven rallies,” analysts at investment firms tracking the banking sector noted.
What’s Next
- Investors will monitor First Holdco’s capital-raising plans and regulatory capital position
- The market will closely watch the group’s next earnings release for signs of operational improvement
- Regulatory developments relating to banking sector recapitalisation remain a key focus for shareholders
The Bottom Line: First Holdco’s sharp decline highlights the market’s transition from sentiment-driven buying to a stronger emphasis on fundamentals. While Fitch’s stable outlook provides some reassurance, investors appear increasingly focused on capital strength, earnings performance and long-term value creation.
