In the year 2023, Cardinalstone Securities Limited, Stanbic IBTC Stockbrokers Limited and eight other firms traded N1.97trilliion worth of stocks, between January and December 2023.
According to the recently released broker performance report, these transactions represents 54.78 percent of the total value of stocks traded by 200 stockbroking firms at the Nigerian Exchange Limited for the year
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..
It will be recalled that the stock market in 2023 gained N13 trillion in market capitalisation as average investors return rose by 45.9 percent 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 trigger investors’ confidence.
Cardinalstone Securities Limited traded stocks worth N440.55 billion or 12.26 percent, of the total value traded on the NGX in the review 12 months period, while Stanbic IBTC Stockbrokers traded N294.18 billion or 8.19 percent transactions, followed by APT Securities and Funds that accounted for stocks worth N281.75 billion or 7.84 percent in 2023.
EFGH Hermes Nigeria was responsible for N170.15 billion or 4.73 percent worth of stocks trade, representing 4.73 percent, while Meristem Stockbrokers Limited accounted for N168.19 billion or 4.68 percent.
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, followed by FBN Quest Securities which traded stocks worth N135.72 billion or 3.78 percent, 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 percent, 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 percent.
The 10 stockbrokers were responsible for 50.40 percent 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 percent, 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.
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.
Analysts had 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.
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