Stanbic, Rencap and Vetiva led 11 stockbrokers to close transactions worth N1.25trillion on the Nigerian Stock Exchange (NSE) in 2013, a deal analysis of market activities conducted by BusinessDay has shown.
The transactions represent 60 percent of the total value that the market turned out in the entire year. Observers say this performance shows how the market is controlled by these elite players whose portfolio of clients range from local to international investors.
From January to December 2013, about N1.25 trillion worth of transaction were done at the Nigerian Stock Exchange (NSE) by Stanbic IBTC Stockbrokers Limited, Rencap Securities (Nigeria) Limited, FBN Securities Limited, and Partnership Securities Limited.
Other dealing member firms whose deals contributed to this value are CSL Stockbrokers Limited, BGL Securities Limited, Cordros Capital Limited, Chapelhill Denham Management Limited, Vetiva Capital Management Limited, and Meristem Securities Limited.
All these stockbrokers were responsible for about 60.26 percent of the total value of deals done at the Nigerian bourse between January 2, 2013 and December 31, 2013. Interestingly, majority of these stockbroking firms service mostly foreign investors, who till date have majority control on the Nigerian equities market.
For instance, out of transactions totaling about N1.908 trillion from January to November 2013, foreign investors accounted for N972.47 billion or 50.94 percent, while domestic investors (retail and institutional) accounted for N936.49 billion or 49.06 percent.
Details of the transactions showed that Stanbic IBTC Stockbrokers Limited accounted for deals worth N387.324 billion or 18.70 percent, while Rencap Securities (Nig) Limited followed with N330.806 billion worth of deals, representing 15.97 percent of the total value of equities traded. In addition, CSL Stockbrokers Limited accounted for N136.637 billion or 6.60 percent, FBN Securities Limited, followed with N79.063 billion worth of deals or 3.82 percent.
While deals done last year by BGL Securities Limited amounted to N74.328 billion or 3.59 percent of the total value of transactions by dealing member firms at the Exchange; Cordros Capital Limited accounted for N62.842 billion or 3.03 percent; Chapelhill Denham Management Limited also was responsible for N48.348 billion worth of transactions, or 2.33 percent of the total.
Deals by Vetiva Capital Management Limited were valued at N45.682 billion last year or 2.21 percent; Partnership Securities Limited accounted for N43.741 billion or 2.11 percent, while Meristem Securities Limited followed in the list, with N39.566 billion worth of deals or 1.91 percent of the total value of transactions by stockbroking firms.
On volume of transactions in the review 12 months period of last year, firms that played big include Stanbic IBTC Stockbrokers Limited (20,522,382,630 shares) or 9.64 percent of the total volume of equities traded by stockbrokers. BGL Securities Limited (20,144,977,967 shares) or 9.46 percent; Rencap Securities (Nigeria) Limited (12,277,282,925 shares) or 5.77 percent, and CSL Stockbrokers Limited accounted for 10,270,013,503 shares or 4.82 percent.
Other firms are Meristem Securities Limited , with 5,659,327,724 shares or 2.66 percent; FBN Securities Limited (5,633,121,841 shares) or 2.65 percent; APT Securities and Funds (5,061,455,885 shares) or 2.38 percent; Partnership Securities Limited (4,603,719,084 shares) or 2.16 percent; Marina Securities Stockbroking Services Limited (4,266,500,702 shares) or 2 percent, and Cordros Capital Limited (3,993,595,430 shares) or 1.88 percent.
By: IHEANYI NWACHUKWU
