Nigeria’s equities transactions hit N3.47trn in eight months

Nigeria’s equities market transactions reached a record high of N3.475trillion in eight months to August 2024, surpassing N2.416trillion recorded the whole of year 2023.

A breakdown of monthly transactions shows investors traded stocks worth N651.52 billion in January while in February they traded N357.88billion worth of stocks. In March, stocks worth N538.54billion were traded, April (N346.23 billion), May (N355.38billion), June (N354.55 billion), July (N491.61billion), and August (N379.52billion).

Local investors are still taking the lead

Looking at the domestic and foreign portfolio participation in equity trading in the review eight months to August, foreign investors traded equities worth N655.47billion, representing 18.86 percent. Local investors accounted for N2.819trillion worth of equities, representing 81.14 percent of the total trade in eight month.

In the review eight months period, foreign inflow into Nigeria’s equities market was N299.73billion while foreign outflow was N355.74billion. Domestic retail investors traded stocks worth N1.451trillion while domestic institutional investors traded equites valued at N1.367trillion in same eight months to August.

A dip in August by 22.80 percent

Every month, the Nigerian Exchange Limited (NGX) polls trading figures from market operators on their domestic and foreign portfolio investment (FPI) flows.

As at August 31, total transactions at the nation’s bourse decreased significantly by 22.80 percent from N491.61 billion (about $305.02 million) in July 2024 to N379.52 billion (about $237.70 million) in August 2024.

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Further look at the total transactions executed between the review month of August and prior month (July 2024) revealed that total domestic transactions decreased by 25.81 percent, from N434.09 billion in July 2024 to N322.05 billion in August 2024.

Similarly, total foreign transactions decreased marginally by 0.09 percent from N57.52 billion (about $35.69 million) to N57.47 billion (about $35.99 million) between July 2024 and August 2024.

A comparison of domestic transactions in the current month and prior month (July 2024) revealed that retail transactions decreased by 33.54 percent from N271.92 billion in July 2024 to N180.72 billion in August 2024. Also, the institutional composition of the domestic market decreased by 12.85 percent from N162.17 billion in July 2024 to N141.33 billion in August 2024.

Interestingly, in eight months to August 2024, equities worth N1.877trillion were traded by only ten stockbroking firms, according to Broker Performance Report of the Nigerian Exchange Limited (NGX).

Here’re the top ten brokers in 8 months

These stockbroking firms are: Cardinalstone Securities Limited, Stanbic IBTC Stockbrokers Limited, United Capital Securities Limited, APT Securities and Funds, EFG Hermes Nigeria Limited, Cordros Securities Limited, Meristem Stockbrokers Limited, CSL Stockbrokers Limited, FBN Quest Securities Limited, and Chapel Hill Denham Securities Limited. These top 10 stockbrokers were responsible for 53.83 percent of the total value of equities traded between January 1, 2024 and August 30, 2024.

Cardinalstone Securities Limited led the top 10 league after trading stocks worth N359.184billion or 10.30 percent of the total value traded on the Bourse in the review period. It was followed by Stanbic IBTC Stockbrokers Limited which traded N320.223 billion worth of equities, representing 9.18 percent of the total, while United Capital Securities Limited traded stocks worth N282.553billion in eight months, representing 8.10 percent of the total value traded same period on the Lagos Bourse.

Also, APT Securities and Funds traded stocks worth N188.161billion or 5.39 percent of the total value traded; while EFG Hermes Nigeria Limited accounted for equities trade worth N150billion in eight months, representing 4.30 percent. Others are Cordros Securities Limited (N126.682billion or 3.63 percent), Meristem Stockbrokers Limited (N120.270billion or 3.45 percent), CSL Stockbrokers Limited (N117.701billion or 3.37 percent), FBN Quest Securities Limited (N108.524billion or 3.11 percent), and Chapel Hill Denham Securities Limited (N104.548billion or 3percent).