10 stockbrokers have jointly accounted for 68.8 per cent of the total value of shares traded in the Nigerian Exchange translating to N1.2 trillion in the first eight months of the year.
This is according to the Broker performance Report, released by the Nigerian Stock Exchange for the month of August, 2022. The 10 stockbrokers traded 115.346 billion shares, amounting to 67.75 per cent of the total volume traded, a total value of N1.293 trillion was transacted during the period under review.
Specifically, Cardinalstone Securities led in value terms trading N526.44 billion, which is 27.76 per cent. APT Securities and Funds followed with N157.094 billion or 8.28 per cent, while Stanbic IBTC Stockbrokers recorded N138.083 billion or 7.28 per cent.
Meristem Stockbrokers and EFG Hermes Nigeria facilitated N95.269 billion (5.02 per cent) and N90.718 billion (4.78 per cent) respectively, while Cordros Securities traded N86.379 billion, which is 4.55 per cent of the total value of traded on NGX during the period under review.
CSL Stockbrokers, Chapel Hill Denham, FBN Quest Securities and Rencap Securities traded shares worth N62.726 billion, N56.300 billion, N45.056 billion and N35.052 billion, respectively.
Further analysis of the performance, in volume terms, showed that Cardinalstone Securities pulled the highest volume of trades with 73.456 billion shares or 43.14 per cent. Chapel Hill Denham Securities accounted for 7.627 billion shares or 4.48 per cent, while APT Securities and Funds recorded 6.116 billion shares, which is 3.59 per cent.
Morgan Capital Securities and CSL Stockbrokers accounted for 6.115 billion shares and 5.165 billion shares in that order, while Meristem Stockbrokers, Stanbic IBTC Stockbrokers, Cordros Securities, EFG Hermes Nigeria and FBNQuest Securities traded volume of shares of 3.893 billion, 3.868 billion, 3.785 billion, 2.675 billion and 2.646 billion.
Meanwhile, investors in the Nigeria’s stock market gained over N4.58 trillion in the first eight months of this year. So far this year, the Nigerian stock market has a bullish performance. The strong market sentiment was supported by the listing of Dangote Foods Plc, commencement of the PSB operation by MTN Nigeria and Airtel Africa, impressive corporate earnings releases, dividend payments, and low fixed-income yield environment.
However, in recent times, the market has experience high volatility due to hike in interest rate as investors sought to take advantage of the rising yield environment in the fixed income space.
Analysts at United Capital Plc noted that, “the uptrend has been particularly driven by domestic institutional investors whose investment options have now been somewhat limited to the equities market.”
While the vice president, Highcap Securities Limited, Mr, David Adonri said the stock market commenced decline performance when the Monetary Policy Committee (MPC) of CBN increase interest rate to 14 per cent.
He noted that other macroeconomy indicators such as inflation rate, and scarcity of foreign exchange have also diminished demand for stocks as investors moved to fixed income markets, saying that the fundamentals of foreign and domestic macroeconomy indicators in three months have impacted negatively on the stock market.
