By ADEBISI ADEMOLA
Ten stockbrokers including StanbicIBTC stockbrokers traded N1.09 trillion value of shares in six months of 2018 representing 68.82 percent of total transactions on the Nigerian Stock Exchange (NSE) between January and June.
Going by NSE records, the remaining 31.12 percent transactions were accounted for by 188 stockbrokers according to the Bourse books which show it has about 198 active and 55 inactive stockbrokers on its list.
StanbicIBTC led the Exchange Brokers’ Performance Report with N324.9 billion or 20.33 per cent of total transactions in six months of the N1.09 trillion traded by the 10 firms.
Rencap Securities (Nig) Limited followed with N203.08 billion (12.71 per cent) while CSL Stockbrokers Limited occupied the third position with N171.86 billion, 8.96 per cent of the N1.09 trillion traded in six months by the 10 firms.
EFCP Limited closed the six months as the fourth top broking firm, accounting for N140.62 billion(8.80 per cent), just as FBN Quest Securities Limited traded N71.08 billion(4.45 per cent) to occupy the fifth position.
Cordros Securities Limited traded N46.6 billion (2.92 per cent) to be the sixth best broking firm, while United Capital Securities Limited occupied the seventh position with N40.1 billion(2.51 per cent).
The report stated that Chapel Hill Denham Securities accounted for N37.7 billion (2.36 per cent), ranking the eight position.
In addition, Cardinalstone Securities Limited and APEL Asset Limited traded shares valued at N37.19billion and N26.69 billion to occupy the nineth and 10th positions respectively.
Finding revealed that firms’ transactions were from inflow of Foreign Portfolio Investors (FPIs), local institutional investors and equity exposure in mutual funds and Pension Funds.
Their major clients are foreign portfolio investors, while a few of them have significant equity exposure through their collective Investment Schemes (CIS) or mutual funds through which they access trading volumes weekly.
Before now, analysts have noted that these companies have some of the most diversified portfolio of clients which others envy. The activities of these big stockbroking forms have made the market tilt towards oligopoly- a market dominated by few buyers and sellers who create room for a sort of imperfect competition, in order to accrue greater revenue and market share.
Analysts disclosed that in addition to being the biggest trading houses for FPIs, they also play big among the local institutional and high net-worth investors.
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