These stockbroking firms controlled 54.78% of deals value in 2023

In year 2023, equities worth N 1.968 trillion were traded by ten stockbroking firms, representing 50.40 percent of the total value of stocks traded in the market in the review year.

These stockbroking firms according to the NGX broker performance report are: Cardinalstone Securities Limited, Stanbic IBTC Stockbrokers Limited, APT Securities and Funds, EFG Hermes Nigeria Limited, Meristem Stockbrokers Limited, United Capital Securities Limited, FBN Quest Securities Limited, Cordros Securities Limited, Chapel Hill Denham Securities Limited, and Apel Asset Limited.

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In 2023, investors in Nigeria’s equities market traded stocks worth N3.58trillion, a remarkable 54.3 percent increase from N2.32trillion in 2022. The highest traded was done in July 2023 (N702.98billion), while the least trade was done in March 2023 (N146.22billion).

According to domestic and foreign portfolio investment (FPI) report of the Nigerian Exchange Limited, the record value of stocks traded in 2023 trailed the year 2007 level when N4.172trillion stocks were traded.

Data on value of stocks traded showed that Cardinalstone Securities Limited traded N440.545billion worth of stocks in 2023, representing 12.26percent; it was followed by Stanbic IBTC Stockbrokers Limited which accounted for stocks trade worth N294.184billion in 2023, representing 8.19percent.

Apt Securities and Funds accounted for equities deal worth N281.750billion, representing 7.84percent of the total value of stocks traded in 2023. EFG Hermes Nigeria Limited traded equities worth N170.148billion in 2023, representing 4.73percent of equities traded in 2023. Meristem Stockbrokers Limited accounted for equities deals worth N168.192billion in 2023, representing 4.68percent of 2023 stocks trade.

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The Nigerian equities market closed the year 2023 with equities capitalisation at N40.917trillion and NGX All Share Index (ASI) at 74,773.77 points. The market finished 2023 with returns of 45.90 percent.

CardinalStone Research analysts noted in a recent economic outlook that “even in the challenging 2023, a passive investor could still have earned a staggering 45.9percent just by tracking the Nigerian All-Share Index (ASI)”.

“In 2023, the Nigerian counters displayed robust performance, with nearly all counters, except one, achieving double -digit gains. The financial services sector, in particular, attracted bullish investor sentiment, witnessing substantial surges for GTCO, Zenith Bank, and Access Corporation at 76percent, 61percent, and 172percent year-on-year, respectively,” noted Vetiva research analysts in their January 25 note titled “VCI West Africa In Equity Index Performance Q4’23 Market Report”.

Out of the record N3.58trillion equities traded on the Nigerian Exchange Limited (NGX) in 2023, only N410.62billion worth of transactions were by foreign investors, representing just 11.48percent of the total while local investors traded equities worth N3.167trillion, representing 88.52percent.

This is compared to N379.23billion (16.32percent) by foreign investors and N1.945trillion (83.68percent) by domestic investors in year 2022. In 2007, domestic investors traded stocks worth N3.556trillion while in 2023, domestic investors traded equities worth N3.167trillion. In 2007, foreign investors traded stocks worth N616billion while in 2023, they accounted for N411billion of equities transactions.

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United Capital Securities Limited traded equities worth N157.619billion in 2023, representing 4.39percent of 2023 equities trade. FBN Quest Securities Limited stock deals in 2023 worth N135.724billion or 3.78percent.

The list further shows Cordros Securities Limited (N126.280billion or 3.51percent); Chapel Hill Denham Securities Limited (N102.154billion or 2.84percent), and Apel Asset Limited which traded equities worth N92.135billion in 2023, representing 2.56 percent of the total value of traded stocks in 2023.