Cardinalstone, Stanbic IBTC Stockbrokers, Eight Others Traded Stocks Worth N1.97tn in 2023
Kayode Tokede
As the stock market closed positive in 2023, Cardinalstone Securities Limited, Stanbic IBTC Stockbrokers Limited and eight other firms traded N1.97trilliion worth of stocks between January and December 2023.
THISDAY had reported that the stock market in 2023 gained N13 trillion in market capitalisation as average investors return rose by 45.9 per cent to 74,773.77 basis points.
The growth in stock market last year was driven by federal government’s foreign exchange (FX) and Fuel subsidy reforms as both factors trigged investors’ confidence.
The eight other stockbroking firms are: APT Securities and Funds, EFG Hermes Nig Limited, Meristem Stockbrokers Limited, United Capital Securities Limited, FBN Quest Securities Limited, Cordros Securities Limited, Chapel Hill Denham Securities Limited and APEL Asset Limited.
Of the over 200 stockbroking firms recorgnised by the Nigerian Exchange Limited (NGX), the 10 stockbroking firms were responsible for 54.78 per cent of the total value of stocks traded on the NGX from January to December, according to recently released broker performance report.
Cardinalstone Securities Limited traded stocks worth N440.55 billion or 12.26 per cent of the total value traded on the NGX in the review 12 months period.
Also in the review period, Stanbic IBTC Stockbrokers traded N294.18 billion or 8.19 per cent transactions, followed by APT Securities and Funds that accounted for stocks worth N281.75 billion or 7.84 per cent in 2023.
EFGH Hermes Nigeria was responsible for N170.15 billion or 4.73 per cent worth of stocks trade, representing 4.73 per cent, while Meristem Stockbrokers Limited accounted for N168.19 billion or 4.68 per cent.
The report also shows that United Capital Securities traded stocks worth N157.62billion or 4.39 per cent of the total value report in same 12 months period.
It was followed by FBN Quest Securities which traded stocks worth N135.72 billion or 3.78 per cent, and Cordros Securities which accounted for N126.28 billion or 3.51per cent of the total value of stocks traded on the Exchange in 12 months to December.
Also, on the top 10 brokers list by value are: Chapel Hill Denham Securities which traded N102.15 billion worth of stocks or 2.84 per cent, Apel Asset Limited that traded N92.14 billion or 2.56 per cent worth of stocks in the year under review.
On a flip side, United Capital Securities led others in 137 billion volume of stocks traded in 2023 as the firm traded 30.84 billion volume of stocks or 11.32 per cent.
The 10 stockbrokers were responsible for 50.40 per cent of the total volume traded between January and December 2023.
Cardinalstone Securities that was on the top spot of most traded by value came second by volume, trading 24.97 billion or 9.16 per cent of the total volume of transactions in 2023. APEL Asset Limited came third with 18.43 billion or 6.76 per cent, while Morgan Capital Securities Limited joined that top four, after trading 15.39 billion or 5.65 volume of transactions in 2023.
In addition to the top five by volume of transactions, APT Securities and Funds that was third on most traded by value sold 12.82 billion or 4.70 per cent volume of transactions in the year under review.
THISDAY can report that most firms’ transactions were inflow from Foreign Portfolio Investors (FPIs), domestic institutional investors and stock exposure in mutual funds.
Their major clients were foreign portfolio investors, while a few of them have significant stock exposure through collective investment schemes (CIS) through which they access a high volume of trading every day.
Before now, analysts have noted that these companies have some of the most diversified portfolios of clients which other firms are envious of. The activities of these big stockbroking firms have made the stock market tilt towards oligopoly- a market dominated by few buyers and sellers who create room for a sort of imperfect competition, in order to accrue greater revenue and market share.
