10 brokers traded 77% of stocks market value in August

STANBIC IBTC Stockbrokers Limited, Rencap Securities Limited and eight other stockbroking houses pulled 76.99 per cent of the total value of transaction carried out on the Nigerian stock market for the month of August.

The others are EFCP, FBN Quest, CSL Stockbrokers, Meristem Stockbrokers,  Chapel Hill Denham Securities, United Capital, Cardinalstone Securities and TRW Stockbrokers

In the latest monthly broker performance report for August 2018 released by the Nigerian Stock Exchange (NSE), Stanbic IBTC, Rencap Securities and EFCP led the top 10 stockbrokers’ performance table in value terms, while Stanbic IBTC Stockbrokers, TRW Stockbroker, and Cardinalstone Securities  led top 10 in volume terms.

According to the NSE report, the 10 leading stockbrokers accounted for 76.99 per cent or N103.42 billion of the total value of trade and 53.32 per cent or 5.76 billion shares of the total volume between August 1 to August 31, 2018.

Of this figure, Stanbic IBTC Stockbrokers accounted for N29.1 billion or 21.63 per cent to lead the other stockbrokers on value terms. Rencap followed with N19.22 billion or 14.31 per cent, while EFCP accounted for a total value of N15.26 billion or 11.36 per cent.

FBN Quest accounted for N8.47 billion or 6.31 per cent, CSL Stockbrokers transacted shares worth of N7.81 billion or 5.81 per cent, Meristem Stockbrokers, N6.51 billion, or 4.85 per cent and Chapel Hill Denham Securities, N6.11 billion or 4.55 per cent.

Others are United Capital Securities, Cardinalstone Securities and TRW Stockbrokers  traded shares valued at N4.91 billion, N3.66 billion and N2.4 billion, respectively.

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On the volume side, Stanbic IBTC sold a total of 1.35 billion shares, TRW Stockbrokers transacted 760.33 million shares, while Cardinalstone pulled 625.56 million shares for the month of August.

Investors in the equities market recorded losses in August, as the benchmark index dropped 5.86 percent to 34,848.45 points, resulting in a Year-to-Date loss of 8.88 per cent.

The ASI dropped below the 35,000 mark for the first time since September 2017, following  significant selloffs by foreign investors, absence of positive market triggers, disappointing economic data release, improved yields in fixed income market, which created a more attractive alternative investment for investors and news of the apex bank’s fine on Stanbic IBTC Holdings and Diamond Bank for illegally repatriating funds on behalf of telecommunications company MTN Nigeria, which led to sell pressure in the listed banks.

Further on the negatives, total volume and value of trades in the month was 19.16 per cent and 8.35 per cent lower than the previous month, at 5.40 billion units and N66.92 billion respectively.

For the month of September, analysts at Cordros Capital said that “we remain conservative in our outlook, as selloffs are likely to persist, amidst the absence of a one-off positive triggers and likely negative sentiments of investors, particularly foreign players, as a result of contagion effect of emerging market selloffs, and  political concerns ahead of the 2019 election