Ten top dealing firms in the Nigerian capital market ended the first seven months of the year 2021 (January-July) with an exchange of 42.865 billion shares worth N581.269 billion. Statistics obtained by New Telegraph showed that the 10 stockbrokers were responsible for 51.50 per cent of the total value between 04/01/2021 and 31/07/2021. Also, the stockbrokers are responsible for 42.01 per cent of the total volume during the period under review.
Analysis of the transactions revealed that Stanbic IBTC Stockbrokers Limited dominated with 10.69 per cent or N120.680 billion exchanged in 5.022 billion shares. Cardinal Stone Limited followed with a record of N76.602 billion or 6.79 per cent in 7.848 billion shares. Investment One Stockbrokers Limited accounted for N73.922 billion or 6.55 per cent.
Rencap Securities Limited traded N71.180 billion or 6.31 per cent, while Meristem Stockbrokers Limited accounted for N48.854 billion or 4.33 per cent traded in 5,958 billion shares. EFG Hermes Nigeria Limited traded N47.523 billion or 4.21 per cent. ABSA Securities Limited traded N43.157 billion or 3.82 per cent exchanged while WSTC Securities Limited exchanged N36.486 billion or 3.23 per cent traded in 2.137 billion shares. FBN Quest Securities Limited staked shares worth N35.133 billion or 3.11 per cent while OPEL Management Limited traded N27.728 billion or 2.46 per cent. Market operators have continued to express concerns over low positive sentiment in the nation’s bourse.
As the Nigerian and global investment climate continues to be challenged, foreign investments continue to dwindle and for-eign investors, whose countries are also economically challenged, move their funds back home where earnings are rising. According to the Managing Director, Cowry Asset Management Limited, Johnson Chukwu, to encourage more retail investors to come back to the market, the returns matrix must favour equities against fixed income. “This means that interest rates must be significantly below their current levels. Lower interest rates should however be preceded by lower inflation rates and more stable exchange rates.
There is also the need to allow credits back to the capital market. “The current CBN policy, which has made lending for capital market activities unprofitable for banks, should be amended to allow for responsible lending to market operators. This will not only encourage retail investors, but will also make it possible for the licensed Market Makers to have the financial resources for carrying out their role of creating market liquidity,” he said. Due to the low level of investment education in the country, market analysts have also called on the Securities and Exchange Commission (SEC) and the NGX to collaborate with market operators for a better structured public awareness campaign about the stock market. The Managing Director/Chief Executive Officer, Crane Securities Limited, Mr. Mike Eze, who made the call, said that public apprehension of the capital market would substantially be allayed with a better structured public awareness campaign to be jointly anchored by NSE, SEC and market operators for the education of shareholders and the protection of their interests, especially the small stock holders. He said the average Nigerian investor suffered considerably, with many losers being first-time investors, essentially unaware of the workings of the market and relying on rising share prices, hunches and herds syndrome for their sharebuying decisions.