I think we need to know if it comes apart..at the ribbed end, before it could be a "holder". You could put needles in the small hole one at a time and "shake" them out, but, if it was worn/carried/hung from the end with the hole/loop the needles would fall out...
My guess is some type of match safe / case with a striker on the end - especially if it comes apart. Maybe the large hole was for a throng so you could wear it around your neck. But I can't explain the small hole on the end - but that doesn't matter if the whole thing doesn't come apart in some manner. Have you tried filling it with water to see if its hollow? If its hollow, it must come apart because there would be no way to hollow it out otherwise. (Maybe)