Stanbic, Cordros, Rencap, others trade N1.3trn worth of stocks in ten months
In ten months to October 31, stock deals valued at approximately N1.3trillion were executed by only ten firms, representing 70.80percent of the total value of stocks traded on the Nigerian bourse in the review period.
Top on the list are Stanbic IBTC Stockbrokers Limited, Cordros Securities Limited, Rencap Securities Nigeria Limited, CSL Stockbrokers Limited, Meristem Stockbrokers Limited, A.R.M Securities Limited, EFCP Limited, FBN Securities Limited, Chapel Hill Denham Securities Limited and United Capital Securities Limited.
This N1.3trillion stock trade by these ten stockbrokers follows 64.9billion units which investors exchanged through only 10 firms in the same period, representing 46.15percent of the total volume in the review period.
In ten months to October, the monthly broker performance report shows the value of stock deals executed by Stanbic IBTC Stockbrokers Limited stood at N345.762billion or 19.37percent; Cordros Securities Limited –N201.639billion or 11.30percent; while Rencap Securities (Nigeria) Limited executed stock trades valued at N187.511billion or 10.50percent of the value of stocks traded in the review period.
CSL Stockbrokers Limited accounted for N113.272billion or 6.35percent; Meristem Stockbrokers Limited (N108.136billion or 6.06percent); A.R.M Securities Limited (N71.334billion or 4percent); EFCP Limited (N66.104billion or 3.70percent); FBN Securities Limited (N65.089billion or 3.65percent); Chapel Hill Denham Securities Limited (N56.637billion or 3.17percent); and United Capital Securities Limited (N48.373billion or 2.71percent).
Broadly reflecting performance across global equities so far in 2017, the Nigerian equities market opened the year surrounded by lots of economic uncertainties.
The economy battled recession, investor confidence was shattered by inconsistent policy responses and militancy in the Niger-Delta region threatened the market’s near-term recovery.
The Nigerian equity market rallied 32 percent in the first nine months of the year as some foreign investors returned to the Nigerian bourse following partial liberalisation of Nigeria’s foreign exchange market.
Most of these top stockbrokers’ major clienteles are foreign investors and domestic institutional investors –like the Pension Fund Administrators (PFAs).
Nigeria’s stock market year-to-date (ytd) return still in excess of 37percent shows impressive growth compared to that of South Africa’s Johannesburg Stock Exchange (JSE) –at 18.5percent; and Kenya’s Nairobi Stock Exchange (23.4percent).
Foreign investors accounted for N783.34billion out of a record N1.655trillion worth of Nigerian equities they traded in the first nine months to September, according to the NSE equity trading data which shows domestic and foreign portfolio participation.
The Pension Fund Administrators raised bet on equities in line with the National Pension Commission (PenCom) regulations which prescribes a new multi-fund structure for Retirement Savings Account (RSA) that encourages greater equity exposure.
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