Leading 10 stockbroking firms in the Nigerian stock market facilitated the exchange of 97.725 billion shares, with a total value of N1.231 trillion, during the first seven months of 2023.  Â
This figure represents 54.89% of the total value recorded between January 1, 2023, and July 31, 2023, according to findings by Nairametrics. Â
The 97.725 billion shares accounted for 56.99% of the total volume transacted during the review period. These findings were published in the monthly broker performance report released by the Nigerian Exchange (NGX). Â
Among the stockbroking firms in Nigeria, Cardinal Stone Securities, Apt Securities, and Stanbic IBTC emerged as the top performers, collectively accounting for N611.687 billion in value and representing 49.69% of the total value of transactions conducted in the first seven months of the year.Â
- CardinalStone Securities secured the highest position in the ranking, with a transaction value of N281.790 billion, which accounts for 13.04% of the overall transaction value.Â
- Apt Securities & Funds followed closely with shares valued at N184.019 billion, representing 8.52% of the total transaction value. Additionally, Stanbic IBTC Stockbroker recorded an estimated value of N145.878 billion in trades accounting for 6.75%.Â
- United Capital facilitated transactions worth N122.666 billion, while Meristem Stockbrokers transacted shares valued at N118.708 billion in seven months.Â
- Others are; FBN Quest Securities, EFG Hermes, Cordros Securities, Regency Asset Management, and Apel Asset facilitated deals valued at N101.079 billion, N88.227 billion, N69.959 billion, N62.025 billion, and N56.943 billion respectively. Â
Brokers to earn big from commissions Â
A cursory analysis of the value traded indicates the top 10 brokers may have earned about N16.62 billion in commissions collectively in the last seven months under review. Â
- Brokers often charge as high as 1.35% in commissions on trades although some charge lower depending on the size of transactions. Â
- However, this accounts for a marginal growth of 0.76% over the commissions earned in the first seven months of 2022 with a value of N1.222 trillion. Â
What you should know:
Nairametrics recently reported that equities trading on the Nigerian Exchange Limited (NGX) finished the month of July in the green territory as the NGX All-Share Index appreciated by 5.5% to close at 64,337.52 index points. Â
Despite concerns such as rising inflation, interest rate hikes, and apprehension surrounding the fallout of the 2023 general elections, investor confidence remained strong, leading to increased buying activity. Â
Nigeria’s main shares index has continued to soar as investors cheered Bola Ahmed Tinubu’s inauguration speech as Nigeria’s 16th president. Â
The positive sentiment among investors can be attributed to several factors, including the peaceful transition to power following the 2023 elections, favorable policies introduced by President Bola Tinubu’s new administration such as the removal of fuel subsidies, streamlining of exchange rates, and the floating of the naira. Â
Investors responded to the changes in Nigeria’s foreign exchange operational framework and viewed President Bola Tinubu’s decision to suspend Central Bank Governor Godwin Emefiele, who had implemented restrictive policies affecting their profits, in a favorable light. Â
Available statistics to the Nairametrics showed that the All-Share Index, which is the broad index that measures the performance of Nigerian stocks, opened the trading month at 60,968.27 index points at the beginning of trading on July 3, 2023, and closed at 64,337.52 points at the end the month on Jul 31, gaining 3,369.25 basis points or 5.5%. Â
Further analysis revealed that activities on the Nigerian Exchange Limited (NGX) which opened the trading year at N33.197 trillion in market capitalization at the beginning of trading, closed the month at N35.011 trillion, hence has earned a month-to-date gain of about N1.814 trillion or 5.5%.Â
How can you take such risks and still return, foolishness