Ten brokers still control more than 60 per cent of total value of transactions in the nation’s bourse amid 250 players
en leading stockbroking firms in the Nigerian capital market ended the first five months of the year 2020 with an exchange of 35.257 billion shares worth N527.365 billion.
Statistics available to the New Telegraph showed that the 10 stockbrokers were responsible for 60.08 per cent of the total value between 02/01/2020 and 31/05/2020.
Also, the stockbrokers are responsible for 47.45 per cent of the total volume during the period under review.
Analysis of the transactions revealed that Stanbic IBTC Stockbrokers Limited dominated with 13.12 per cent or N115.148 billion exchanged in 4,233 billion shares.
EFG Hermes Nigeria Limited followed with a record of N105.658 billion or 12.042 per cent exchanged in 5,353 billion shares.
Rencap Securities Limited accounted for N73.907 billion or 8.42 per cent invested in 4,178 billion shares.
CSL Stockbrokers Limited traded N57.248 billion or 6.52 per cent in 3,630 million shares, while Cardinal Stone Limited accounted for N43.393 billion or 4.94 per cent exchanged in 5,297 billion shares. Tellimer Capital Limited traded N31.416 billion or 3.58 per cent in 1,528 billion shares.
Chapel Hill Denham Management Limited traded N29,233 billion or 3.33 per cent in 1,897 billion shares while Meristem Stockbrokers Limited exchanged N24.830 billion or 2.83 per cent.
FBNQuest staked shares worth N23,365 billion or 2.66 per cent while Cordros Securities Limited traded N23,162 billion or 2.64 per cent.
The National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Dr Anthony Omojola, recently called for the consolidation of 255 stockbroking houses in the country.
Omojola, who spoke in a virtual interview, noted that only about 10 of the stockbroking firms dominate the market.
According to him, their own 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 companies 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 the 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 de congesting 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.’’
He stated further: ‘’In 2020, we expect the full demutualization of the Nigeria Stock Exchange, and this will usher in more opportunities for bigger investments, standardisation 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 needs to retool to better serve the needs in the economy.