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10 Stockbroking Firms Account For 52.92% Traded Volume, Worth N1.01trn

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Ten stockbroking firms traded stocks valued at N1.010 trillion in 2021.

This was revealed in the Broker Performance Report for January 2, 2021 to December 31, 2021.

The top 10 stockbrokers traded 52.92 per cent of the total value of shares transacted in the period under review. They also traded 43.77 per cent or 76.265 billion of the total volume of shares traded on the Nigerian Exchange (NGX) Limited in one year.

Stanbic IBTC Stockbrokers Limited recorded the highest transactions worth N211.931 billion, representing 11.11 per cent of the total value of the transactions for the period. Cardinalstone Securities followed with a transaction worth N140.601 billion, representing 7.53 per cent of the total value of transactions, while Rencap Securities pulled transaction worth N107.022 billion.

EFG Hermes Nigeria sold stocks valued at N105.143 billion, while Meristem Stockbrokers’ transaction valued at N89.460 billion in 12 months. Investment One Stockbrokers International, APT Securities and Funds, FBN Quest Securities, APEL Asset and Cordros Securities in that order pulled transactions valued at N84.136 billion, N73.317 billion, N71.548 billion, N68.947 billion and N54.506 billion respectively.

Meanwhile, in terms of the volume of shares sold, Cardinalstone Securities came top with 15.230 billion shares sold, representing 8.74 per cent of the total volume of shares sold during the period. Morgan Capital Securities followed with volume of 12.186 billion shares, while Meristem Stockbrokers handled volume of 10.004 billion shares.

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APT Securities and Funds pulled 8.763 billion, while Stanbic IBTC Stockbrokers transacted 7.496 billion shares.

Meanwhile, investors in Nigerian equities rallied net capital gains of about N1.240 trillion in the year 2021, while the All-Share Index (ASI) went up by 6.07 per cent to close the year 2021 at 42,716.44 points.

Capital market analysts noted that total equities market transactions moderated in 2021 compared to the value of transactions executed in the corresponding period of 2020. The decline in total transaction was chiefly due to the weak appetite of foreign portfolio investors (FPIs) amid fears of foreign exchange volatility eroding their returns on investment.

They, however, said local investors dominate the equities market as they accumulated more shares to take position in some fundamentally sound stocks following the release of corporates’ nine months financial results which were largely positive.

Analysts at Cowry Assets Management Limited stated that, “the domestic stock market was generally bearish in the first half of the year as investors shifted base to the fixed income space given the significant rise in rates; thus, taking advantage of the uptrend in relatively less risky interest rates.

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“Specifically, we saw the stop rate for 364-day T-Bills surge to 9.75 per cent in May 2021 from a very low level of 1.14 per cent in December 2020. The bourse however took a positive turn in H2 2021 as local institutional investors swooped on shares for relatively better dividend yields as the T-Bills stop rate moderated to 4.9 per cent in December 2021.

“Also, the interest of the local institutional investors in the equities space picked in Q3, 2021 following the release of corporates’ nine months financial results which were largely positive, even as it further substantiated the capacity of the companies to sustain good dividend payouts in full year, 2021. As investors flocked to the local stock market, the benchmark index finally closed in green territory at the end of 2021.”

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