Ten stockbroking firms traded N55bn shares in 7 months

The top 10 stockbroking firms traded shares valued at N55 billion in seven months ended July 31, 2016, according to the data obtained by business247 News Online.

This made the firms to account for 60.98 per cent of total value of stocks traded on the Nigerian Stock Exchange (NSE).

An analysis of the 10 broking firms show that Stanbic IBTC Stockbrokers Limited led the chart accounting for N14.88 billion or 16.46 per cent.

EFCP Limited followed with N12.65 billion (13.99 per cent) while Rencap Securities (Nig) Limited occupied the third position with N8.1billion (8.96 per cent).

CSL Stockbrokers Limited closed the seven months as the fourth top broking firm, accounting for N4.8 billion (5.36 per cent), just as  African Alliance Stockbrokers Ltd  traded N3 billion (3.36 per cent) to occupy the fifth position.

Chapel Hill Denham Securities Ltd traded N2.8 billion (3.10 per cent) to be the sixth best broking firm, while FBN Securities Limited   occupied the seventh position with N2.8 billion(3.08 per cent).

Coronation Securities Limited accounted for shares valued at N2 billion (2.21  per cent), just as Cordros Capital Limited and Primera Africa Securities Ltd (2.2 per cent) traded shares valued at N2 billion and N1.99 billion  to occupy the ninth and 10th positions respectively.

The Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike in an interview with our correspondent had explained that stockbroking firms with foreign affiliations were bound to lead the top performance charts.

According to him, “the number of stockbroking firms you need is function of population not technology.  Nigeria has 180 million in population.  It is important that we look at the development of the capital market at holistic point of view. China for example has over 1400 sub- brokers. The reason is that the people that needed their services are so many.  China has army of professionals that reach out to investors.

“If you analyze these firms’ transactions, they are foreign investors. Will that sustain our capital market, No.?  Each time foreign investor’s sneeze, all of us get more than a cold. Why should we continue along that line?  When regulators put policies that are strict, you’ll find it difficult for other firms to attract retail investors into the capital market.

“For me, we need an army of professionals to reach out to retail investors and we can’t do it by restricting and constricting the numbers of firms operating in the capital market,” he stated.