Ten leading stockbroking firms in the Nigerian capital market ended the first seven months of the year 2020 with an exchange of 43.831 billion shares worth N656.483 billion. Available statistics sourced by New Telegraph showed that the 10 stockbrokers were responsible for 59.29 per cent of the total value between January 2, 2020 and July 31, 2020. Also, the stock brokers are responsible for 47.47 per cent of the total volume during the period under review. Analysis of the transactions revealed that Stanbic IBTC Stockbrokers Limited dominated with 12.90 per cent or N142.810 billion exchanged in 5.407 billion shares. EFG Hermes Nigeria Limited followed with a record of N128.110 billion or 11.57 per cent exchanged in 6.738 billion shares. Rencap Securities Limited accounted for N89.593 billion or 8.09 per cent invested in 4,651 billion shares. CSL Stockbrokers Limited traded N67.508 billion or 6.10 per cent in 4,135 million shares, while Cardinal Stone Limited accounted for N56.622 billion or 5.11 per cent exchanged in 7,301 billion shares.
Cordros Capital traded N37.721billion or 3.41 per cent. Chapel Hill Denham Management Limited traded N35.927 billion or 3.21 per cent in 2070 billion shares while Tellimer Capital Limited exchanged N33.996 billion or 307 per cent. Meristem Stockbrokers Limited staked shares worth N33,774 billion or 3.05 per cent while FBNQuest Limited traded N30,419 billion or 2.75 per cent in 2.050 billion shares. The National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Dr Anthony Omojola, recently called for the consolidation of 255 stock broking houses in the country.
Omojola, who was speaking in a virtual interview noted that only about 10 of the stockbroking firms dominate the market. According to him, their recapitalisation should see some mergers that will bring the number to a manageable size and help to improve the performance of the capital market sector of the economy. Omojola said that, going forward, there was every likelihood that that the nation will witness some growth in the areas of Medium and Small scale Enterprises because of some palliatives and tax incentives extended to them in this year’s budget.
On the group’s expectations for the year 2020, he said: “We are concerned with the purchasing power of the people in terms of goods and services which has been seriously affected by the value of naira, which is a reality of increase in tariffs, rates and other government policies that have negative effects on the people.
‘’We urge government to do more to lessen the burden in the business operating environments in the country, so that more profits can be made by individuals, entrepreneurs and companies. Further efforts should be made in decongesting the Lagos ports with a view of lowering products costs which will have a salutary effect on our level of inflation which is on the rise. ‘’Nigeria requires huge infrastructural improvements in power, road, rail and air. With an improved road and rail transport system, locally produced goods and services will contribute more to the GDP.
The question is, how visible is the promise to link all the state capitals through rail? “For this to happen, our budget needs more allocation for better funding reliance on loans alone may not help us. But if properly funded and implemented, finished goods will be transported through the rails and maintenance costs on the roads will be drastically reduced. ‘’In 2020, we expect the full demutualisation of the Nigeria Stock Exchange, and this will usher in more opportunities for bigger investments, standardization of policies and bring along with it some level of confidence in the capital market. He commended the central banks’ plan to consolidate the banking sector, adding that the banks needed to retool to better serve the needs in the economy.