FBNH Gain Pushes Banking Index, Outperforms NGX

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FBNHFBN Holdings (Ticker: FBNH) share gained 4%, outperforming the Nigerian Exchange (NGX) equities index which popped by 3.3% as the Tier-1 lender become a popular investment window in the local bourse in the past seven trading sessions.

For shareholders seeking alpha, it is a good start to the year. Over the last 7 days, the stock market gained 3.3%, driven by gains in the Communication Services and Materials sectors of 6.9% and 3.3%, respectively.

Trading data show that the banking sector Index rose 3.5% as equities investors continue to hunt for growth, value stocks. It is all about solid fundamentals, equity analysts in addition to positive market sentiments – both are currently present, analysts said.

Market analysts hope to see a healthy performance in the first half of 2023 as fund managers fine-tune their investment strategy toward a high-risk market while balancing declining yield in the fixed-income market.

Some analysts believe that healthy liquidity in the financial system triggered a twin rally seeing in the equities and fixed-income markets… usually, fund managers had always allocated resources between the two while seeking alpha.

FBNH is more liquidity and followed the strategic incursion of billionaire investors, Femi Otedola, I. 2022, the brand has been repriced. Its market price settled at N11.60 on Friday though this also represents a decline after the valuation of #440 billion it reached last year.

Since 2022, investment firms’ equities reports have been largely positive for FBNH’s earnings outlook. More than ever, equities analysts appear to be betting large on the financial service group’s share with a number of buying ratings.

Target prices set vary, depending on analysts’ investment mood and valuation quality but one thing that is common is the fact that the stock has good fundamentals.  In a couple of weeks, FBNH will release its fourth-quarter earnings results. Last quarter’s performance was impressive, thus supporting its steady market performance.

In 2022, FBNH shareholders’ wealth slumped 3%, though equities market return printed at 19.98% following a strong, sustained bull run.  For the year, a steady dividend payment is expected while analysts see the ongoing rally in the local bourse driving market price upward. >>>Equities Investors Gain N253bn ahead of Earnings Release

Last year, the banking sector closed positive as the NGX Banking Index increased from 406.07 index points to 417.50 index points, appreciating by 2.81%.



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