10 Broking Firms Facilitate N414bn Investment in Equities

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Goddy Egene

Ten top stockbrokers facilitated the trading of 78.189 billion equities worth N414.11billion on the Nigerian bourse between January and July 2016, THISDAY investigation has revealed.

The performance represents 58.3 per cent of the total transactions for the period in value terms and 58.4 per cent in volume terms. A breakdown of the performance table in value terms shows that Stanbic IBTC Stockbrokers Limited led with N90.92billion, which is 12.7 per cent. Rencap Securities (Nigeria) Limited followed with N75.737billion, representing 10.6 per cent, while CSL Stockbrokers Limited facilitated N61.974billion worth of shares, which is 8.7 per cent of the total transactions in value terms.

EFCP Limited accounted for N54.645 billion or 8.1 per cent, just as FBN Securities Limited recorded N34.366billion or 4.8 per cent. Greenwich Trust Limited traded N27.591billion or 3.8 per cent, while Cardinalstone Securities Limited and African Alliance Stockbrokers Limited recorded N17.755billion and N17.672billion, which are 2.5 per cent and 2.3 per cent respectively.

Chapel Hill Denham Securities Limited accounted for N16.428 billion or 2.3 per cent, just as Investment One Stockbrokers International Limited recorded N14.853billion or 2.1 per cent.

In volume terms, Greenwich Trust Limited led with 27.174 billion shares, representing 20.3 per cent, followed by Capital Assets Limited with N8.412billion shares that translated to 6.3 per cent. Global Asset Nigeria Management Limited occupied the seventh position with 7.967billion shares or 5.9 per cent.

A further analysis of the table indicates that Vetiva Capital Management Limited traded 7.110 billion shares or 5.3 per cent, while CSL Stockbrokers Limited recorded 6.832 billion shares or 5.1 per cent.

Stanbic IBTC Stockbrokers Limited traded 6.295 billion shares or 4.7 per cent, just as Rencap Securities Limited accounted for 4.760billion shares or 3.6 per cent.
EFCP Limited sold 3.301 billion shares or 2.4 per cent, while Morgan Capital Securities Limited and Apel Asset Limited recorded 3.246 billion shares and 3.091billion shares representing 2.4 per cent and 2.3 per cent in that order.

The stockbrokers’ performance chart was introduced by the NSE five years back to as part efforts to bring transparency to the market and enhance investors’ decision making process.

The NSE followed this with Broker Oversight & Supervision System (X-BOSS) to strengthen its regulatory and oversight function.
Chief Executive Officer, Mr. Oscar Onyema had said the system would automate the regulatory and oversight function of the Exchange over its dealing members.

Onyema said that the X-BOSS was aimed at redefining the compliance and regulation experience between the exchange and its dealing members.

He said that the X-Boss would enhance electronic dissemination of dealing members’ information in a structured and sustainable manner, to reduce the burden and inconvenience of a manual system.

“It is a major step towards attaining the exchange vision of becoming the leading Stock Exchange in Africa driven by regulation, efficiency, liquidity and innovation,” he said.

Onyema said that the initiative demonstrated NSE’s commitment to implementing global best practices to increase efficiency, improve transparency and drive operational excellence.
He said that the initiative was the first of its kind in West African capital market.

Also speaking on the X-Boss, NSE General Counsel and Head of Regulation, Ms. Tinuade Awe, said it would enhance regulation aimed at thriving activities at the capital market.
Awe said that the system was designed to promote compliance as well as reduce the financial and operational burden of complying with regulatory requirements.