Ten stockbroking firms have traded stocks worth N491.482 billion in the first five months of the year, according to data from the broker performance report by the Nigerian Exchange Limited (NGX).
Between January 1 and May 31, 2021, the top 10 stockbrokers on the exchange traded 52.46 per cent of the total value of shares transacted in the period under review. They also traded 43.73 per cent or 36.255 billion of the total volume of shares traded on the NSE in five months.
Stanbic IBTC Stockbrokers Limited recorded the highest transactions worth N98.261 billion, representing 10.49 per cent of the total value of the transactions for the period.
Investment One Stockbrokers followed with a transaction worth N70.190 billion, representing 7.49 per cent of the total value of transactions, while Cardinalstone Securities pulled transactions worth N64.194 billion.
The NSE report showed that RenCap Securities sold stocks valued at N58.032 billion while ABSA Securities’ transactions were valued at N42.619 billion in five months. EFG Hermes, Meristem Stockbrokers, FBN Quest Securities, WSTC Securities and APEL Asset in that order pulled transactions valued at N41.750 billion, N35.066 billion, N29.983 billion, N28.160 billion and N23.224 billion.
Meanwhile, in terms of the volume of shares sold, Cardinalstone Securities came tops with 6.684 billion shares sold, representing 8.06 per cent of the total volume of shares sold during the period. Morgan Capital Securities followed with volume of 5.942 billion shares while Meristem Stockbrokers handled volume of 4.847 billion shares.
Moreover, the stock market has recorded a year-to-date loss of 4.6 per cent as at May 31, 2021 due to rising yields in the fixed income (FI) market. Yields on fixed income instruments which were depressed last year have been on an upward trajectory in 2021 amidst strong local demand for higher yields and the need to attract foreign interest in Nigerian securities amid a dollar shortage.
Speaking on market performance for the first five months of the year, the founder of Tradelines DotBiz Investment Limited, Mr Tunde Jeariogbe, said equities performances on the trading floor were mixed, with January and April closing in the positive territory, while February, March and the just concluded month of May dragged performances through the bearish region.
He noted that; “in all, the All-Share Index recorded a year-to-date loss of 4.55 per cent, while the market capitalisation of the listed equities shed N1.022 trillion.
“Fundamental factors that dictated market trend through the five months observed so far in 2021 spanned from the second stage of COVID-19 that opened the market in January, the release of interim full year numbers that prepared investors for the final audited numbers, the first quarter numbers equally played its usual impact, as traders optimised the numbers to position against expected half-year earnings in June/July.”