In a year marked by economic challenges and opportunities alike, Nigeria’s leading stockbrokers closed 2023 with a total trading value of around N1.9 trillion.
The NGX reported a year-to-date gain of 45.9% marking an end to a profitable year for investors in the Nigerian Exchange.
Stockbrokers are also in line to reap massively from the returns posted during the year, mostly via market capitalization increases and volumes of shares traded. Brokers earn commissions on stock market trades.
In total, the top ten stockbrokers processed over 54.78% of the total value of trades on the exchange estimated at around N3.59 trillion.
How they performed
United Capital Securities Limited emerged as the volume leader in a competitive field, executing trades numbering over 30 billion units, accounting for 11.32% of the total market volume.
- This positions United Capital Securities as the go-to broker for investors prioritizing a high quantity of transactions.
- However, when it comes to the value of trades, Cardinalstone Securities Limited took the prime spot.
- With a transaction value cresting N440 billion, CSSL represented 12.26% of the market’s total trade value.
- By far, Cardinalstone ended up as the broker that made the most money in 2023. Nairametrics estimates the company earned at least N4.5 billion in commissions on executing stock market trades for the year.
Scroll to the bottom to see the top ten by Value of Trades below
Competitive Strategies
The concentration of market activity within the top ten brokers is a standout feature of the report.
These brokers combined for just over half of the total trade volume, and an even greater share of the total value, at 54.78%.
Notably, the rankings shift when comparing volume and value. United Capital, while leading by volume, falls to sixth place in value. And Cardinal Stone while second place for volume is tops for Value
Conversely, CSSL’s strategy appears to prioritize fewer, yet more lucrative deals, a tactic that has earned them the top spot in trade value but second in volume.
What this means
- The data also reveals a dynamic and competitive brokerage landscape.
- The diversity in strategy among top brokers—some focusing on high volumes of trade, others on the value of trades—paints a picture of a multifaceted marketplace where various paths to success are possible.
- Market analysts suggest that these patterns may influence the strategic planning of other brokers looking to climb the rankings in the coming year.
- With the economic forecast for 2024 still uncertain, adaptability and strategic planning will be key for brokers aiming to capture market share.
Optics for 2024
As Nigeria’s financial markets continue to evolve, the role of top brokers in shaping the landscape cannot be understated.
- The question remains whether these trends will continue into the new year or if a reshuffling of the leaderboard is on the horizon.
- Industry watchers will be keeping a close eye on how these firms adjust their strategies in response to economic signals and regulatory changes.
- The coming year promises to be another fascinating chapter in the story of Nigeria’s financial markets.
- For investors and market participants, understanding the nuances behind these figures will be crucial for making informed decisions.
As the Nigerian Exchange Limited continues to foster transparency and competitiveness, the market awaits with anticipation to see how these top brokers will perform in the face of future challenges and opportunities.
Top Ten Stockbrokers by Value of Trade
As the financial year draws to a close, we’ve seen remarkable performances in Nigeria’s trading landscape. Here’s an ascending order listicle of the top brokers by trade value for 2023:
10. Apel Asset Limited – BRD
- Value: ₦92,135,887,917.00
- Market Share: 2.56%
Starting our list is Apel Asset Limited, with just over N92 billion in trades, carving out a 2.56% share of the market value.
9. Chapel Hill Denham Securities Ltd – BRD
- Value: ₦102,154,935,597.79
- Market Share: 2.84%
Chapel Hill Denham shows a strong performance, surpassing the N100 billion mark.
8. Cordros Securities Limited – BRD
- Value: ₦126,280,239,576.01
- Market Share: 3.51%
Cordros Securities claims the 8th spot, showcasing a solid foothold in the market with a 3.51% value share.
7. FBN Quest Securities Limited
- Value: ₦135,724,195,507.72
- Market Share: 3.78%
With a strategic push into higher-value trades, FBN Quest takes the 7th position.
6. United Capital Securities Limited
- Value: ₦157,619,289,314.11
- Market Share: 4.39%
United Capital, the leader by volume, still makes a significant mark in value traded, landing in the 6th spot.
5. Meristem Stockbrokers Limited
- Value: ₦168,192,540,531.75
- Market Share: 4.68%
Mid-table, Meristem Stockbrokers demonstrates a balanced approach, holding just under 4.7% of the market by value.
4. EFG Hermes NIG Limited
- Value: ₦170,148,283,994.77
- Market Share: 4.73%
EFG Hermes edges into the 4th position, with a trade value just over N170 billion.
3. APT Securities and Funds – BRD
- Value: ₦281,750,086,716.57
- Market Share: 7.84%
APT Securities leaps ahead, securing a commendable 7.84% slice of the market’s value.
2. Stanbic IBTC Stockbrokers Limited
- Value: ₦294,184,259,973.87
- Market Share: 8.29%
Just shy of the top, Stanbic IBTC impresses with nearly N294 billion in trades.
1. Cardinalstone Securities Limited
- Value: ₦440,545,734,410.87
- Market Share: 12.26%
Leading the pack, Cardinalstone Securities Limited dominates with over N440 billion in trade value, accounting for a substantial 12.26% of the market. A clear indicator of their prowess in executing high-value transactions in 2023.