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Top 10 brokers make up 65.83% of total market value in 10 months

By on November 24, 2014

The top 10 brokers at the Nigerian Stock Exchange (NSE) contributed 65.83 per cent to the total market value in the first 10 months of the year, spanning January to October, according to the NSE’s broker performance report for the review period.

The 65.83 per cent represents N1.47 trillion in terms of cash value to the Nigerian bourse between January 1 and October 31, 2014.
According to the Nigerian Stock Exchange performance report made available at the exchange website, top on the list of the 10 top brokers in the review period include Stanbic IBTC Stockbrokers Limited, which contributed 18.86 per cent, worth N421.447billion to market value.

Stanbic IBTC was trailed by Rencap Securities Limited, which contributed 8.8 per cent, worth N198.404 billion in the period under review.

The third position was occupied by CSL Stockbrokers, contributing 8.88 per cent of market value worth N197.524 billion.
Others on the list of the NSE’s 10 top brokers for the 10-month period include Chapel Hill Denham N147.132 billion, Meristem Securities N145.972 billion and FBN Securities N95.742 billion, while Cordros Capital Limited, Cardinal Stone Securities Limited and BGL Securities did transactions valued at N93.594billion, N65.160 billion and N63.176billion respectively.

In terms of volume, Stanbic IBTC Stockbrokers Limited also came first with a total volume of 21,785,301,943, a 12.44 per cent of the top 10 transactions in terms of volume in the first 10 months of the year.
FBN Securities came second in terms of volume, posting 15,888,487,147 deals, put at 9.08 per cent of the top 10 transactions in terms of volume.

CSL Stockbrokers, BGL Securities and Rencap Securites contributed 11,742,849,643, 11,686,015,990 and 9,639,667,037 in terms of volume, respectively.
In the period, the 10 top brokers in volume were responsible for 95 billion units of shares that exchanged hands at the Nigerian bourse.

Information on brokers’ performance chart coincided with a report by Reuters that foreign investors sold off Nigerian stocks valued at N101.2 billion ($583.6 million) in October after a drop in the oil price and the local naira currency.
The investors, which accounted for 87.5 per cent of the N1.25 trillion of stock market transactions in the first ten months of this year, took out some N676.7 billion in that period – 14.9 per cent more than they invested.

Foreign investors increased the pace of outflows in August, selling out of the relatively liquid banking, consumer and oil sectors as the price of Brent crude, the benchmark against which Nigeria’s oil is priced, dropped.
The plunge in the oil price has put the naira under pressure and dampened appetite for assets in Nigeria’s economy, prompting the central bank to intervene repeatedly to try to prop up the naira.

Unlike in other stock markets which recorded normal spiral trend in performance, many investment analysts believe Nigeria’s heightened political risk continued to cast doubt on her potential as an investment destination.

“Outlook is cautious, as electioneering and insurgency are expected to slow down investment activities even further,” research analysts at CBO Capital, a Lagos-based advisory firm, noted recently in their economic outlook.

Ahead of last month’s trading activities, analysts at UBA Capital plc, a Lagos-based investment firm, had in their outlook expressed concerns on cautious trading by local investors “on the back of modest expectations around Q3 earnings, even as reduced participation of foreign portfolio investments continue to weigh down market momentum”

The currency closed at 173.48 against the dollar on Wednesday, increasing losses to 8.5 per cent so far this year, as dollar supply dried up and the central bank made no fresh intervention, dealers said.

The October sell-off was similar to February’s, when funds cashed in N103.5 billion worth of stocks, after the president suspended the then central bank governor Sanusi Lamido Sanusi, which sent the stock market into a tailspin.

 

[ThisDay]