• Thursday, March 28, 2024
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BusinessDay

Stanbic, RenCap, CSL, top brokers since January

Stanbic IBTC

The dominance of the biggest stockbrokers continued into the month of May as Stanbic IBTC Stockbrokers Limited, Rencap Securities Limited and CSL Stockbrokers Limited maintained their positions as the top three stockbrokers by value since the beginning of the year.

These three giants and 7 others accounted for stocks worth N537.966 billion in the first five months of the year according to data from the broker performance report by the Nigerian Stock Exchange (NSE).

Stanbic IBTC Stockbrokers Limited recorded transactions worth N134.999 billion, representing 17.21 per cent of the total value of the transactions for the period. RenCap Securities followed with transactions worth N95.54 billion, representing 12.18 per cent of the total value of transactions, while CSL Stockbrokers pulled transaction worth N59.08 billion. The three brokerage firms controlled half of the total value of transactions made in the first five months of the year and maintained dominance over their peers.

In terms of the volume of shares traded, Greenwich Trust ranked as the first with 6.95 billion shares sold, representing a 9.83 per cent of the total volume of shares sold during the period. Stanbic IBTC Stockbrokers followed with volume of 6.77 billion shares, while CardinalStone Securities handled volume of 4.19 billion shares.

Obinna Uzoma told BusinessDay that “stockbrokers should see more trades happening in H2 as investors positive outlook for the stock market in second half of the year should take these numbers higher. Analysts emphasize that the worst is over H1 amid political uncertainties which clouded investors’ sentiment as elections took place”

The stock market is down by 2.87 percent since the beginning of the year and investor appetite for debt securities outweigh the thirst for equities.

“Following the value-investing strategy, the key to approaching equities in H2 is to pick companies at depressed prices. Investors can start cherry picking companies that are in good shape with sound fundamentals, whose share prices are trading at a discount to intrinsic value due to the bearishness of the first half of the year. Also considered are in the investors’ stock picks are equities with history of dividend payment.” Uzoma added.

The NSE report showed that Coronation Securities sold stocks valued at N52.84 billion, while EFCP Limited’s transaction valued at N52.7 billion in five months. Chapel Hill Denham Securities, EFG Hermes, FBN Quest Securities, CardinalStone Securities and Meristem Stockbrokers in that order pulled transactions valued at N34.78 billion, N33.96 billion, N30.44 billion, N28.56 billion and N15.06 billion completing the top ten brokerage firms by value since January.

 

Ifeanyi John