The Nigerian Stock Exchange (NSE) ended 2019 bearish as All-Share index posted a loss of 14.09%. This marks the second year straight of losses after it ended 2018 with a loss of 17.81%.
However, the top ten stockbroking firms on the NSE traded N1.35 trillion worth of shares in full-year 2019 (January and December).
The report, which was obtained from the Stock Exchange by Nairametrics, disclosed that top 10 stockbroking firms accounted for 53.85% (85.5 billion shares) of the total volume of stocks traded on the NSE and N1.35 trillion (70.14%) of the total value of traded shares in 2019.
[READ MORE: Top 10 Stockbroking firms on the NSE in Q3 2019)
Top 10 stockbrokers by value
- Stanbic IBTC Stockbrokers Limited led the pack of the stockbrokers. On the Exchange, the firm traded the largest volume of shares worth N336.9 billion that represent 17.49% of the total value traded in the year.
- Rencap Securities (Nig) Limited pulled shares worth N239.4 billion, representing 12.42% of total traded shares.
- EFG Hermes Nig. Limited traded N188.5 billion (9.97%) worth of shares.
- CSL Stockbrokers Limited ranks 4th, trading N119.5 billion (6.20%) worth of stocks.
- Tellimer Capital Limited traded shares worth N103.6 billion, representing 5.38% of total value traded.
- Chapel Hill Denham Securities Limited traded N83.08 billion shares, representing 4.31% of total traded shares.
- APT Securities and Funds traded N77.6 billion, representing 4.03% of total share value traded.
- FBN Quest Securities Limited is next on the list with N72.2 billion, amounting to 3.75% of the total value of traded shares on the NSE.
- Coronation Securities Limited is 9th on the list with N66.5 billion traded shares.
- Last on the list is Meristem Stockbrokers Limited, with N63.99 billion or 4.03% of total stocks traded in 2019.
Top 10 stockbrokers by volume
- In terms of volume, Stanbic IBTC Limited also comes top spot with 13.8 billion worth of shares, representing 8.75% of the total value of traded shares in 2019.
- Qualinvest Capital Limited ranks second and traded 12.40 billion stocks or 7.81% of total volume traded.
- Rencap Securities (Nig) Limited comes third with 9.12 billion traded stocks or 5.74% of the total volume traded.
- EFG Hermes Nig. Limited traded 8.77 billion shares in the year, representing 5.52% of the total volume traded on the NSE.
- CSL Stockbrokers Limited traded 7.80 billion stocks or 4.91% of total shares traded to rank 5th.
- Cardinalstone Securities Limited is next on the list with 7.53 billion or 4.75% of the total value traded.
- Greenwich Trust Limited ranks the 7th with 7.53 billion shares traded, thereby accounting for 4.47% of the total share volume traded.
- Morgan Capital Securities traded 6.83 billion (4.30%) volume of stocks in 2019
- Chapel Hill Denham Securities Limited traded 6.79 billion shares, which accounted for 4.28% of the total volume traded.
- Lastly, FBN Quest Securities Limited traded 4.82 billion (3.04%) shares in 2019.
Overall market performance in 2019
Nigerian stocks posted negative returns every month in 2019 except for February +0.92% making the year the worst since 2016.
- Basically, the All-Share Index posted double-digit losses every month from July to December 2019. The worst month for Nigerian Stocks was in November 2019 posting a negative Year to Date return of 16.48%.
- In May 2019, stocks rallied to a month on month gain of 6%, the highest for the year, before falling back into negative territory as investors’ appetite waned.
- The swearing-in of the Buhari led government did little to assuage investors as concerns mounted for the economy.
- Cornerstone Insurance was the best stock posting a return of 125%. This was followed by AG Leventis and Thomas Wyatt with 104% and 65% respectively. Access Bank posted the best amongst banks and Blue Chip stocks with a return of 47%. Zenith, FBNH, UBA, and GTB all closed the year in the red.
- The worst stock for the year was International Breweries posting a negative return of 69%. All brewery stocks also posted losses.
Nobody is going to ban Bitcoin – US Bank regulator
Following fears of potential regulation on cryptos, it has been revealed that a ban on Bitcoin and other cryptos is far from the truth.
One of the leading financial regulators in the world’s largest economy, the United States, recently disclosed that the world’s flagship crypto is here to stay, amid rumours coming from different quarters on the likely ban on Bitcoin.
In a report credited to CNBC, Brian Brooks, the Acting Comptroller of the currency, hinted that more regulations on bitcoin and other cryptos are already in the works but downplayed fears that such regulation was going to change the core fundamentals of the crypto market
In a recent interview with Melissa Lee on “Squawk Box,” he disclosed further on “clarity” measure being put in place for cryptocurrency in the next six-to-eight weeks, but said, “nobody’s going to ban bitcoin.”
“We’re very focused on getting this right, on not killing this. And it’s equally important that we develop the networks behind bitcoin and other cryptos, as it is what will prevent money laundering and financing terrorism,” he added.
Fears about potential regulation got strengthened last month when Coinbase CEO, Brian Armstrong, disclosed via his Twitter handle on hearing rumours that the U.S Treasury Department was working to rush out new crypto regulations before President Donald Trump’s tenor ends.
“We heard rumours that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I’m concerned that this would have unintended side effects and wanted to share those concerns,” Armstrong said.
Last week we heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I'm concerned that this would have unintended side effects, and wanted to share those concerns.
— Brian Armstrong (@brian_armstrong) November 25, 2020
However, the top U.S regulator dismissed such fears by saying, “I think you’re going to see a lot of good news for crypto before the end of the term,”
What you should know
- At the time of writing this report Bitcoin traded at $18,999.05 with a daily trading volume of $28,550,005,376. BTC price is down -1.7% in the last 24 hours.
- It has a circulating supply of 19 Million BTC coins and a max supply of 21 Million.
U.S Stocks post record gains across markets spectrum
The Dow DJIA gained 0.8% to close near 30,218 points, while the S&P 500 SPX +0.88% advanced 0.9%, to finish near 3,699 points,
Investors are trooping in large numbers at U.S equity markets as buying pressure escalates at the world’s biggest and most liquid equity market.
What you should know
Major U.S stock benchmarks were all fired up at the last trading session of the week, recording another week of gains for U.S stocks, as global investors looked past a softer-than-expected U.S jobs report.
- The Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000 RUT, +2.37% each ended at an all-time high – the first simultaneous record finishes for the quartet since Jan. 22, 2018.
- The Dow DJIA gained 0.8% to close near 30,218 points, while the S&P 500 SPX +0.88% advanced 0.9%, to finish near 3,699 points, and the Nasdaq Composite COMP surged by 0.7% to 12,464 points.
What they are saying
Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, spoke on the prevailing fundamentals global investors would be gazing at amid the COVID-19 era:
“Investors continue to knock their Yule logs that a pre-holiday Christmas stimulus bill will provide the ultimate holiday stocking stuffer this year, and continue to look on the sunny side of the eventual vaccine rollout.
“But before we can make new gains, there is the usual sentiment tug of war between medium-term optimism and near-term COVID-19 despair.
“I do not know how many times we have been down this road before. Still, all roads lead to prosperity eventually as the post-pandemic market rally has moved seamlessly from policy-driven to mobility-driven to vaccine-driven and should continue so even if some investors are sitting on the fence waiting for a new stimulus deal.”
What to expect
In the near term, leading stock experts are predicting an even stronger 2021 bullish outlook possibly for the U.S Stock markets, coupled with a quick inoculation-driven economic recovery.
$414 million worth of Bitcoin moved by a large entity
A Bitcoin whale has moved 21,846 BTC valued at around $414 million.
Large entities are presently increasing their presence at the world’s most valuable crypto market, as Bitcoin breaches below the $19,000 price level.
What we know: Data obtained from Bitcoin BlockBot, a BTC analytic tracker, revealed that a Bitcoin whale moved 21,846 BTC valued at around $414 million.
Whale alert! 🐋 Someone moved 21,846 BTC ($414M) in block 659,963 https://t.co/K6vN5m8qX0
— Bitcoin Block Bot (@BtcBlockBot) December 4, 2020
At the time of writing this publication, the flagship crypto traded at $18,798.43 with a daily trading volume of $35.3 billion. Bitcoin is down 2.95% in the last 24 hours. It’s presently ranked the most valuable crypto by market value, with a market capitalization of $349 billion.
It has a circulating supply of 18,562,518 BTC coins and a maximum supply of 21,000,000 BTC coins
Why this is happening
Crypto traders and investors are now cashing in on some of their gains, as recent price action reveals the flagship crypto broke the key support level of $19,000 amid record inflows coming from institutional investors.
Recent, data from Glassnode revealed BTC Active Supply 2y-3y (1d MA) just reached a 3-month high of 2,548,131.371 BTC.
- The previous 3-month high of 2,542,341.460 BTC was observed on 04 December 2020.
- The amount of circulating supply last moved between 2 years and 3 years ago.
Previous 3-month high of 2,542,341.460 BTC was observed on 04 December 2020
— glassnode alerts (@glassnodealerts) December 5, 2020
What this means
While it is difficult to predict market movements, large entities have shown historically that they often determine the crypto trend.