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Stanbic IBTC, CSL, Rencap Securities top trading in 7months

By BusinessNews Staff on August 10, 2015

As the Nigerian capital market continues to await the economic direction of the President Muhammadu Buhari administration, the Nigerian Stock Exchange has disclosed that 10 top stockbroking firms accounted for 67.50 per cent of the value of the total transactions between January and July.
The exchange’s broker performance report for the first seven months also put the value of transactions pulled by the 10 leading broking firms at N863.2 billion.
Leading the ranking table was Stanbic IBTC Stockbrokers Limited with transactions worth N184 billion, representing a 14.36 per cent of the total value of the transactions for the period. Stanbic IBTC was followed by CSL Stockbrokers Limited with a cumulative transactions valued at N161billion, which amounted to 12.56 per cent of the total value of the transactions for the seven-month period.
Rencap Securities Nigeria Limited came third in terms of the value of the transactions it managed for the period under review with transactions worth N147billion.
In terms of the quantity of shares traded, CSL Stockbrokers Limited topped the ranking as it handled 12,792,148,782, amounting to 12.24 per cent of the total transactions for the period. Stanbic IBTC Stockbrokers Limited came second with 10,027,011,537, amounting to 8.81 per cent of the transactions for the period.
Meanwhile, there are indications that the Nigerian capital market may have defied the twin problem of slump in the price of oil and the pressure on the local currency in the month of June, following the 39.88 per cent rise in total transactions on the Nigerian Stock Exchange (NSE) for the period.
However, foreign portfolio transactions within the period decreased to N69.65 billion, down 12.69 per cent from May 2015 while domestic transactions increased to N133.80 billion in the same period, representing an upward movement of 103.71 per cent.
In its latest report on domestic and foreign portfolio participations in equity trading for the period which was posted on its website last week, the NSE disclosed that total transactions at the nation’s bourse increased to N203.45 billion (about $1.04 billion) in June 2015, up 39.88 per cent from May 2015.
On a monthly basis, The Nigerian Stock Exchange polls trading figures from major custodians and market operators on their foreign portfolio investments (FPI).
According to the calculations by the NSE, foreign investors conceded about 31.52 per cent of trading to domestic investors as FPI transactions decreased from 54.84 per cent of the total transactions in May to 34.24 per cent in June while domestic transactions increased from 45.16 per cent to 65.76 per cent over the same period.
Foreign portfolio investors’ inflows accounted for 20.97 per cent of total transactions while the outflows accounted for 13.26 per cent of the total transactions in June 2015.
In comparison to the same period in 2014, total FPI transactions decreased by 40.97 per cent, whilst the total domestic transactions increased by 24.45 per cent. FPI inflows outpaced outflows which was consistent with the same period in 2014.
Overall, there was a 9.78 per cent decrease in total transactions in comparison to the same period in 2014.
The FPI outflow includes sales transactions or liquidation of portfolio investments
through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchange (Equities only).
Meanwhile, total domestic transactions were said to have increased by 47.67 per cent from January to June 2015. The institutional composition of the domestic market which was about 33.69 per cent at the end of January increased to 80.89 per cent at the end of June, whilst the retail composition decreased from 66.31 per cent to 19.11 per cent in the same period.
The exchange also disclosed that total FPI transactions of N616bn which accounted for 14.8 per cent of total transactions in 2007 increased over the years to N1,539bn, representing 57.5 per cent of total transactions in 2014 (An increase of 42.7 per cent over the 7year period).
It explained further that domestic transactions on the other hand started at N3,556bn representing 85.2 per cent in 2007, but decreased significantly to N1,137bn representing 42.5 per cent of total transactions in 2014 (A sharp decline of 42.7 per cent).
The benchmark performance indicator of the Nigerian equities market has been in broad retreat on a combination of factors such as companies’ poor half-year (H1) results and investors’ sense of drift since the handover to the administration of Nigeria’s new president, Muhammadu Buhari, barely two months ago.
The Nigerian Stock Exchange (NSE) All Share Index (ASI) retreated from a high of 33,943.29 points as at January 5, 2015 to 30,247.83points recorded Monday August 3, 2015.
Likewise, the market capitalisation of listed equities on the Nigerian bourse declined from record highs of N11.237 trillion as at January 5, 2015 to N10.367trillion as at Monday, indicating a value loss of about N870billion.