The leading 10` stockbroking firms in the Nigerian stock market earned N18.486 billion in the first eight months of 2023.
This was facilitated by the exchange of 105.611 billion shares, with a total value of N1.369 trillion, during the period under review.
This figure represents 56.38% of the total value recorded between January 1, 2023, and August 31, 2023, according to findings by Nairametrics.
The 105.611 billion shares accounted for 53.79% 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).
Among the stockbroking firms in Nigeria, Cardinal Stone Securities, Apt Securities, and Stanbic IBTC emerged as the top performers, collectively accounting for N684.616 billion in value and representing 50% of the total value of transactions amounting to N9.242 billion in commissions, conducted in the first eight months of the year.
- CardinalStone Securities secured the highest position in the ranking, with a transaction value of N315.560 billion, which accounts for 12.99% of the overall transaction value.
- Apt Securities & Funds followed closely with shares valued at N197.868 billion, representing 8.15% of the total transaction value. Additionally, Stanbic IBTC Stockbroker recorded an estimated value of N171.188 billion in trades accounting for 7.05%.
- Meristem Stockbrokers transacted shares valued at N133.097 billion in eight months while United Capital facilitated transactions worth N129.035 billion.
- Others are; FBN Quest Securities, EFG Hermes, Cordros Securities, Regency Asset Management, and Apel Asset facilitated deals valued at N105.062 billion, N100.683 billion, N92.423 billion, N63.836 billion, and N60.608 billion respectively.
Brokers to earn big from commissions
A cursory analysis of the value traded indicates the top 10 brokers may have earned about N18.486 billion in commissions collectively in the last eight months under review.
- Brokers often charge as high as 1.35% in commissions on trades although some charge lower depending on the size of transactions.
What you should know
Nairametrics recently reported that equities trading on the Nigerian Exchange Limited (NGX) closed the month of August on a positive note as investors’ confidence was bolstered toward listed corporates following favourable policies and earning season.
The NGX All-Share Index appreciated by 3.44% to close the month of August at 66,548.99 index points, recording a YTD return of 29.85% growth.
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.
Nigeria’s main shares index on Tuesday 29th August, marked a historic milestone and hit a 15-year high as investors continued to cheer Bola Ahmed Tinubu’s inauguration speech as Nigeria’s 16th president
The All-Share Index (ASI) of Nigerian Exchange Limited (NGX) had risen by 0.51% to 66,490.34 points from 66,151.38 the previous day, surpassing the highest value of 66,371.20 recorded on the Exchange on March 5, 2008.
The positive sentiment among investors can be attributed to several factors, including favourable policies introduced by President Bola Tinubu’s new administration such as the removal of fuel subsidies, streamlining of exchange rates, the floating of the naira and investors strategically positioned themselves and taking advantage of the recent record earnings posted by quoted firms.
This renewed enthusiasm was remarkable following an increase in local investor participation in the equity market, which, according to Nairametrics, rose by an impressive 72% in July alone.
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 64,337.52 index points at the beginning of trading on August 3, 2023, and closed at 66,548.99 points at the end the month on August 31, gaining 2,211.47 basis points or 3.44%.
Further analysis revealed that activities on the Nigerian Exchange Limited (NGX) which opened the trading year at N35.011 trillion in market capitalization at the beginning of trading, closed the month at N36.422 trillion, hence has earned a month-to-date gain of about N1.411 trillion.