What is happening to First Bank's Share price?At one time it rose to N56,dropped a bit and gave bonuses.After then, the share price has been experiencing a free fall.Infact it closed at N38.98 after today's trading.People are begining to panic.But thank God I didn't buy FirstBank cos I was saving towards ACCESS Bank.

From my own understanding, there are times when share prices fluntuate. I was suprised at the closed value today, but I believe there is actually no room to panic; and It would be unfair on your own part to have stated this:But thank God I didn't buy FirstBank. Its really quite unfair!

To,

Mojir,

why is it unfair for ICON 4 s to have started the thread.

The only thing she did't say was that other shares will also rise and fall (fluctuate)

All the banks are coming to the market as if there are unlimited money in the country.

In any event, there is no visible thing that will support First bank coming to the market whwn they did, and that is why they are paying the price. They are simply cpying UBA or not to be outdone by UBA.

And believe me I had not bought any of the share nor I am hoping to buy ACCess Bank either but price get to some point and cannot be sustained anymore and it will start to fall.

My own view is that once it reaches some price it will start to climb up again. my instinct tells me that that price will be between N30- N33.

So anybody investing in the stockmarket should be warn, you can lose money the way you can make money.

If you do not have the tolerance don't go to the stockmarket.

All the gurus in the house had sounded advance warnings about First Bank.

With such an overbloated no. of outstanding shares (after factoring in those to be absorbed by the recently concluded public offer that raised close to N530bn) that is now threatening to strike parity with the last profit after tax, it was only a matter of time before the party would end and the free fall would begin.

If the bank does not do something to boost its profits or do a share reconstruction, there is danger ahead for the share price of this bank.

Nothing to worry about FBN. Just be patient. Stockmarket is for LONG TERM investment. Speculators are those that easily get slaughtered. If you are an investor just relax.

What you are having is correction that is providing good buying opportunities.

No problem with offers once you can deploy the money raised to generate profit. FBN is well positioned to do that!

We are currently in a bearish market.Zenith,UBA,Union Bank,GTB and Intercontinental Bank are also experiencing this free fall.

To the least of my knowledge aside from the bonus issues by some of these banks, share-holders are heavily off-loading their shares because of the current multiple public offers by less capitalised companies and at attractive discounts.

This heavy off-loading has created a surplus in the shares of these Banks on the floor of the exchange.Remember the Law of Demand and surpply?When surpply exceeds demand prices fall is it not?

OCEANIC Bank is not really affected by this bearish run because share certificates of their last offer are not yet out so people cannot sell.

It is predicted that this bearish run will continue for the next few weeks since more companies are going public.

The issue about FirstBank is that it was over priced.

When it was on technical suspension @ N40.40 and offering to the public @ N33 & N31 it's fair market price was around N34.People were seeing a N7-N9 discount where -as based on the Fair market price it was N1-N3.

Shortly after the technical suspension, the price was apparently manupulated to N56 -N57.Their market fundamentals could not support that price which lead to the first free fall to N48.Bonuses were issued and price adjusted to N41.Even @ that price it was still over priced cos their market fundamentals could still not support it.

The free fall might still continue until it reaches it's fair market price which is between N30 & N35.

@Icon4s

No be so o, At the time when firstbank was 40.40, it was one of the fairest priced among banks due to the bullish trend in the first half of this year. in short all banks were overpriced at the time, ALL!

Secondly the price was not manipulated to 58, the bank released a very good year end result and promised dividends and bonus issue so a lot of people rushed in to benefit from bonus issue, demand increased, hence price went up,

As is usual with any company that announces bonus, some short termers will sacrifice bonus issues and sell shortly b4 deadline taking advantage of the high price, supply icreases, price goes down

i can tell u categorically that those that bought the FBN will make their gains in time, let FBN declare good results with the money they have collected and see,
FBN is not doing pos to put the money in a coffin, it is to generate profit and ensure that earnings, profits can be grown.

Temmie10

can u please reply my mail

Thanks

BabyGaddy:

Temmie10

can u please reply my mail

Thanks

sorry but i haven't got your mail, what address did u send it to?

Temmie 10,

I still maintain that FBN was over priced @ their N40.40 technical suspension price.

Yes there was the bullish run 1st Quarter this year but did you investigate the factors responsible for the run?More over the bullish run was experienced mostly by penny stocks and less capitalised companies.

I don't dispute the fact that demand for the FBN share increased shortly before they issued dividends and bonuses which lead to the rise in price but am tellin yu that there was an element of price manipulation.

I have always seen FBN as a long term investment.So if you are buying for a short term profit I guess you have to be patient with the Elephant.

The Elephant is a slow but powerful animal. Let's wait for it!