Ten stock broking firms move 84 percent of total value
Stanbic IBTC Stockbrokers, FBN Securities, and eight other stock broking firms moved N29.6 billion worth of stocks representing 83.5 percent of the total value of stocks traded on the Nigerian Stock Exchange (NSE) last week.
The other brokers were Chapel Hill Denham Securities, GTI Securities, CSL Stockbrokers, Rencap Securities, Cordros Capital, Apel Asset, Cardinal Stone Securities and EFCP.
According to the NSE stockbrokers’ performance report for the week ended 23rd December 2016, Stanbic IBTC Stockbrokers topped the list having traded N9.1 billion or 25.70 percent of the total value transacted within the reviewed period. FBN Securities followed with N7.1 billion or 19.95 percent, while Chapel Hill Denham Securities came third with N4 billion worth of transactions representing 11.26 percent of total value traded.
GTI Securities Limited traded N2.6 billion or 7.46 percent worth of equities in the review period, as CSL Stockbrokers transacted N2.4 billion representing 6.83 percent.
A further breakdown of the activity report showed Rencap Securities came sixth with N1.2 billion worth of trades representing 3.44 percent, Cordros Capital was next with N890.4 million representing 2.51 percent, while Apel Asset traded 2.48 percent of the total value traded at N879.3 million.
Other stockbroking firms listed were Cardinal Stone Securities and EFCP with N785.9 million and N575.4 million representing 2.21 and 1.62 percent respectively.
In terms of volume traded, the top 10 stockbrokers moved 63.77 percent of the total volume in the review period, approximately 1.6 billion securities.
Stanbic IBTC Stockbrokers maintained its topmost position with 282.9 million stocks representing 11.22 percent of total volume. This was followed by Cardinal Stone Securities with 269.4 million shares at 10.68 percent while GTL Securities ranked third with 261.1 million shares at 10.36 percent of total volume.
TFS Securities and Investment Co exchanged 181.8 million or 7.21 percent; Chapel Hill Denham Securities, 162.8 million or 6.46 percent; Readings Investments traded 137.1 million or 5.44 percent and Apel Asset came seventh with 96.3 million or 3.82 percent of volume traded.
Cordros Capital and Rencap Securities traded 78.1 million or 3.10 percent and 70.4 million or 2.79 percent in terms of volume respectively.
The last firm was CSL Stockbrokers limited with 67.9 million or 2.69 percent of the volume of transaction traded in the equities market.
Inflow from Foreign Portfolio Investors (FPIs), local institutional investors and equity exposure in mutual funds, are responsible for transactions from these firms, with major clients as foreign portfolio investors, while a few of them have significant equity exposure through their collective Investment Schemes (CIS) through which they access trading volumes and values weekly.
Before now, analysts have noted that these companies have some of the most diversified portfolios of clients which others envy.
The activities of these stock broking firms have made the equities market tilt towards a state of limited competition, where the market is shared by a small number of producers or sellers.
Meanwhile, some analysts are of the view that in addition to being the biggest trading houses for FPIs, they also play big among the local institutional and high-net-worth investors.
