The parent firm of First Bank of Nigeria Limited (FBN), FBN Holdings Plc, has experienced a nearly 50% decline in market value during the most recent bear market run. The stock market has been devastated by the selloffs, which have erased early-year gains.
Due to the ongoing stock value erosion caused by selloffs in the stocks market, several of its FBNH owners have started selling their shares quickly. Some stock experts believe that the recent negative run, in which FBNH has fallen a victim, is a market correction. Several investment firms have maintained a bearish position on banking equities subsequent to their separate 12-month target prices being exceeded.
The Banking Group was well on its way to recover the most valued financial position listed on the Nigerian Exchange, having seen its market price peak at N37 just in March.
At a lesser price, FBNH had eclipsed its tier-1 rivals market value. As FBNH gained popularity on the expectation of strong and healthy future earnings streams, its share price movement became more volatile.
Prior to the publication of its first quarter earnings report, a financial scorecard is anticipated to put the company’s profitability muscles to the test in the face of numerous regulations that will weaken margins in the banking industry starting in 2024.
April has not been nice for FBNH Plc. Ticker: FBNH has seen a steep decline in its valuation lately. This is the opposite of the earlier trend that surfaced in the stock market after Femi Otedola, the board chairman, made a strategic investment in Marina House.
The financial services group has become a target for sales by its shareholders amidst a recapitalisation plan.
With a history of board takeovers by special interests, the managing director of its banking subsidiary, First Bank of Nigeria Limited, abruptly resigned recently, sparking market-side speculation.
Some share owners are now selling down the Elephant-branded financial institution for a show.
On March 17, MarketForces Africa reported that FBN Holdings has become the second largest financial institution on the Nigerian Exchange as its shares have become attractive to investors.
The elephant had been running faster than anticipated. It reached a record high as its valuation surged by 14% to N1.328 trillion. According to information obtained from the Nigerian Bourse, FBNH Plc fell sharply to less than N709 billion midweek.
The financial services group has lost roughly 47% in the last few weeks when these two market value positions are compared. At the close of the trading session on Wednesday, the elephant had gotten leaner, its market price has slumped to N19.75 per share from N37 just last month.
Why are shareholders selling FBNH shares rapidly?
