The leading 10` stockbroking firms in the Nigerian stock market raked in a whopping N19.209 billion in the first half of the year 2024 as increased volume and value of trade in the NGX boosted brokerage revenue.
This represents a significant increase from the same period in 2023 when the top 10 brokers earned N10.789 billion in commissions.
Despite concerns such as rising inflation, and interest rate hikes, investor confidence remained strong, leading to increased buying activity.
This was facilitated by the exchange of 56.672 billion shares, with a total value of N1.423 trillion, during the period under review.
This figure represents 54.43% of the total value recorded between January 1, 2024, and June 28 2024, according to findings by Nairametrics.
The 56.672 billion shares accounted for 44.02% 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, Stanbic IBTC Stockbrokers, Cardinal Stone Securities and Apt Securities emerged as the top performers, collectively accounting for N727.078 billion in value and representing 50.42% of the total value of transactions conducted in the first half of the year.
Stanbic IBTC Stockbrokers Limited secured the highest position in the ranking, with a transaction value of N280.606 billion, which accounts for 10.73% of the overall transaction value.
Cardinal Stone Securities followed closely with shares valued at N276.674 billion, representing 10.54% of the total transaction value. Additionally, Apt Securities & Funds recorded an estimated value of N170.798 billion in trades accounting for 6.53%.
United Capital facilitated transactions worth N148.355 billion, while EFG Hermes transacted shares valued at N127.938 billion during the first half of the year.
Others are Cordros Securities, Meristem Stockbrokers, CSL Stockbrokers, Chapel Hill Denham and Apel Asset, which facilitated deals valued at N101.485 billion, N88.853 billion, N82.069 billion, N75.921 billion, and N71.275 billion respectively.
Brokers to earn big from commissions
A cursory analysis of the value traded indicates the top 10 brokers may have raked in about N19.209 billion in commissions collectively in the first half of the year under review.
Brokers often charge as high as 1.35% in commissions on trades although some charge lower depending on the size of transactions.
However, this accounts for a growth of 78.04% over the commissions earned in the corresponding period of 2023 with a value of N829.962 billion.
Market performance
Equities trading on the Nigerian Exchange Limited (NGX) concluded the first half of 2024 on a positive note, despite economic challenges such as high inflation, a depreciating exchange rate, and security concerns, resulting in the All-Share Index closing at 100,057.49 points.
- The NGX All-Share Index showed resilience with a year-to-date return of 33.81%, although mixed performances were observed in the first two quarters of the year.
- The first quarter saw an impressive return of 39.84%, driven by strong company earnings, positive dividend announcements, and the listing of Transcorp Power Plc, which boosted the overall NGX market capitalization by N1.8 trillion.
- Investor confidence was also bolstered by favourable policies from President Bola Tinubu’s administration, including the removal of fuel subsidies, streamlining of exchange rates, and the floating of the naira.
- However, the second quarter experienced a decline with returns falling to -4.31%, influenced by the Central Bank of Nigeria’s new recapitalization plan for commercial banks and a higher interest rate environment driving investors towards fixed-income securities.
