Markets

Stanbic IBTC Stockbrokers Limited records N299.59bn trading in 8 months

by BALA AUGIE

October 3, 2017 | 1:38 am
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Nigeria’s largest stockbroking firm and member of Stanbic IBTC Holdings PLC, Stanbic IBTC Stockbrokers Limited (SISL) has outperformed peers as the company recorded the highest trading value between January and August.

The exchange’s broker performance report for the first eight months also put the value of transactions pulled by the 10 leading broking firms at N1.08 trillion.

Leading the ranking table was Stanbic IBTC Stockbrokers Limited with transactions worth N299.59 billion, representing a 19.61 per cent of the total value of the transactions for the period.

Cordros Securities Limited followed with N196.645 billion or 12.87 per cent. Recap Securities Nigeria Plc recorded N147.179 billion or 9.63 per cent, while Meristem Stockbrokers Limited and CSL Stockbrokers Limited facilitated N105.004 billion (6.8 per cent) and N81.429 billion (5.33 per cent) respectively.

Further analysis of the performance, in volume terms, showed that Stanbic IBTC Stockbrokers maintained the number one spot, trading 9.974 billion shares or 8.26 per cent.

Stanbic IBTC Stockbrokers or SISL attributed the impressive performance to its online trading platform, excellence in execution, research, sales and in sourcing for blocks flows as the firm is committed to helping deepen the Nigerian capital market with innovative products.

“We do not only seek to execute transactions, it is more important to build quality relationships with our clients and other stakeholders,” said Titi Ogungbesan, Chief Executive Officer, Stanbic IBTC Stockbrokers Limited.

SISL, the largest stockbrokering house in Africa’s most population nation, is also an approved Market Maker of a basket of listed equities on the Nigerian Stock Exchange (“The NSE”) and the Government Stockbroker to Federal Government Bonds.

“We are currently promoting Retail Bond trading on floors of The NSE,” said Ogungbesan

The leading stock brokering firm played a significant role in the recent right issues of two consumer goods firms: Guinness Nigeria Plc and Unilever Nigeria Plc.

Early this year, SISL launched its online trading platform with a view to providing investors with real time market information while giving them the mandate to real time mandate to buy and sell shares on the floor of NSE.

Ogungbesan noted that with reliable and timely data, decision making is faster and investors are better able to structure their activities for efficiency, while tapping into opportunities, all of which will positively impact both their portfolios and returns.

The intervention of the central bank combined with higher oil price and production, has helped Nigeria exist its worst recession in 25 years.

The introduction of the Investors’ and Exporters’ window by the apex bank and the subsequent liberalization of the foreign exchange market resulted in improved liquidity as investor appetite for equities increased.

The Nigerian Stock Exchange All Share Index (NSEASI) was 24.4 percent higher between January and August 2017, recovering from a 6.2 percent contraction between January and December 2016.

Foreign investments with Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) was up 49 percent and 128 percent  respectively in Q2’2017 as compared to the same period in the prior year.

In the second quarter of 2017, the nation’s Gross Domestic Product (GDP) grew by 0.55 percent (year-on-year) in real terms, indicating the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016.

According to a report by the National Bureau of Statistics (NBS), oil GDP hit 1.64 per cent in second quarter of 2017, up from -11.63 per cent in second quarter of 2016 and -15.40 per cent in the first quarter of 2017 while the non-oil GDP grew at 0.45 per cent, up by 0.83 per cent points from the record of the first quarter of 2016.

Nigeria’s foreign exchange reserves were up 1.52 percent from a month earlier to $32.16 billion by Sept. 22, latest Central Bank of Nigeria data shows. Nigeria’s dollar reserves were up almost 30 percent from a year earlier.

The economy witnessed a significant improvement in the macro-economic fundamentals in 2017 as we have recorded consistent monthly drop in inflation from 18.72% in January 2017 to 16.01% in August 2017 due to base year effect, according to Ogungbesan.

“We have also had improvement in FX liquidity due to the new Investors & Exporters (I&E) FX window introduced by Central Bank of Nigeria (CBN) during the year. We saw significant improvement in volume of transactions executed in the equities market as well as the fixed income market. The intervention of the CBN in the capital market has helped in bringing Foreign Portfolio Investments (FPIs) into the country,” said Ogungbesan.

Stanbic IBTC Stockbrokers is the wholly owned Stockbroking subsidiary of Stanbic IBTC Holdings PLC (“Stanbic IBTC”) and a member of the Standard Bank Group, registered by the Securities & Exchange Commission of Nigeria (“SEC”) and was licensed in June 1987 to provide world class stockbroking services to local as well as foreign investors in the Nigerian Capital Market.

BALA AUGIE


by BALA AUGIE

October 3, 2017 | 1:38 am
12893  |   93   |   0  |   Start Conversation

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