CardinalStone Securities Limited, Stanbic IBTC Stockbrokers Limited, and United Capital Securities Limited and other seven stockbroking firms traded N3.137trillion stocks in twelve months to December 31, 2024.
The other firms are APT Securities and Funds, Cordros Securities Limited, EFG Hermes Nigeria Limited, FBN Quest Securities Limited, Meristem Stockbrokers Limited, CSL Stockbrokers Limited and Apel Asset Limited.
The Nigerian Exchange Limited (NGX) broker performance report from January 1, 2024 to December 31, 2024 shows that this record value of stock traded by these dealing member firms represents 54.97percent of the total value of stocks traded on the NGX in the review year.
Cardinalstone Securities Limited traded equities worth N696.029billion or 12.19 percent of the total value of stocks traded on the NGX in the same period. Stanbic IBTC Stockbrokers Limited was responsible for equities trading valued at N642.818billion or 11.26 percent of the total trade in one year; while United Capital Securities Limited traded stocks worth N341.060billion or 5.98 percent.
“The surge in market activity reflects growing investor confidence in the Nigerian equities market, underpinned by recent monetary policy adjustments
aimed at economic stabilisation, enhanced FX liquidity that mitigated repatriation risks, and the subsequent relative stability of the Naira.
“Additionally, the resilience of corporate performance across key sectors, despite prevailing economic challenges, further bolstered sentiment, with some companies delivering robust earnings growth and operational efficiencies. Furthermore, attractive market valuations provided compelling entry opportunities for both foreign and domestic participants,” Meristem analysts further said.
“We expect investors broad upbeat mood to outweigh occasional lackluster sentiments during the year. Factors such as corporate actions, improved forex liquidity, and positive earnings performance are poised to further tilt investors sentiment towards equities assets,” according to investment research analysts at Lagos-based Meristem in their 2025 outlook.
Other firms that controlled large chunk of stock deals include APT Securities and Funds which traded equities worth N286.526 billion or 5.02 percent of the total value of stocks traded on the NGX in 2024; Cordros Securities Limited (N283.007 billion or 4.96 percent); EFG Hermes Nigeria Limited (N190.048 billion or 3.33 percent); and FBN Quest Securities Limited (N189.941 billion or 3.33 percent).
Jude Chiemeka, Chief Executive Officer, NGX who was represented by Abimbola Babalola, Head of Trading and Products, at the Closing Gong Ceremony marking the end of 2024 trading activities noted that, “The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders.
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“Complementary macroeconomic fundamentals were instrumental, and we appreciate the impactful policymaking by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalisation process”.
Nigerian Exchange Limited (NGX) All Share Index (ASI) closed 2024 with an impressive annual growth of 37.65 percent. This impressive return outperformed peer returns across global and continental markets.
The record positive marked a remarkable turnaround, breaking away from the poor performance of the 2015–2019 period to thrive in the 2020s.
Ahead of the release of December data, NGX report on domestic and foreign portfolio participation in equities trading shows that total trade equities transaction then was N4.91trillion.
Foreign transactions in nine months to November was N785.28 billion or 15.98 percent, while domestic transaction was N4.128trillion or 84.02percent.
In the same period, foreign inflow was N370.15billion while outflow was N415.13billion. Domestic retail investors accounted for N2.105trillion while domestic institutional investors traded N2.022trillion of stocks in the same period.
“The Nigerian equities market recorded mixed performance in 2024. Gains were driven by strong corporate earnings and sector-specific growth,
particularly in sectors like banking, industrials, and oil & gas. However, volatility persisted due to monetary tightening by the Central Bank of Nigeria and inflationary pressures.
“We maintain a cautiously optimistic outlook for 2025, driven by expectations of improved macroeconomic conditions, stronger corporate earnings, new listings, relative stability in the exchange rate, and a potential moderation in yields,” according to the Praise Ihansekhien-led team of investment research analysts at Meristem.
The depreciation of the naira, driven by macroeconomic reforms by the Central Bank of Nigeria (CBN) and the Federal Government significantly boosted the performance of the stock market. For instance, foreign capital inflow steadily increased, rising from a low of 4 percent in mid-2023 to an average of 16 percent by November 2024.
Recently, Temi Popoola, GMD/CEO, Nigerian Exchange Group reflected on the market’s resilience and growth trajectory, saying “Nigeria’s capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors.
“The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity,” Popoola said.
He further highlighted the transformative impact of policy reforms: “Macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies.
“As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants,” he added.
Other top stockbroking firms in terms of value of stocks they traded in 2024 include: Meristem Stockbrokers Limited (N188.153billion or 3.30 percent); CSL Stockbrokers Limited (N175.428billion or 3.07 percent), and Apel Asset Limited (N144.764billion or 2.54 percent).
In terms of volume of stocks traded, companies that took the lead in 2024 are: Cardinalstone Securities Limited (23.667billion units or 8.51 percent of the total shares traded on the NGX in the review year); Stanbic IBTC Stockbrokers Limited (14.996billion units or 5.39 percent), Morgan Capital Securities Limited (13.807billion units or 4.96 percent), Cordros Securities Limited (11.630 billion units or 4.18 percent), APT Securities and Funds (11.226 billion units or 4.03 percent), Meristem Stockbrokers Limited (10.306 billion units or 3.70 percent), and FBN Quest Securities Limited (8.955 billion units or 3.22 percent).
Other top stockbroking firms that accounted for higher volume of stocks traded on the NGX are Greenwich Trust Limited (8.809 billion units or 3.17 percent, GTI Securities Limited (7.895 billion units or 2.84 percent of the total, and United Capital Securities Limited (7.659 billion units or 2.75 percent of the total shares traded on the Exchange in 2024.
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