10 broking firms transact N12.4bn worth of stock in 2014
Despite the effort of the Securities and Exchange Commission (SEC) to recapitalise stock broking firms in order to make them relevant in their businesses, only ten of them transacted 55.48 per cent of entire trading activities that happened in 2014.
Ten out of 228 active stock broking firms operating in the Nigerian capital market accounted for N120.366 billion representing 55.48 per cent of the total volume between January 2, 2014 and December 31, 2014, compared with N1.248 trillion or 60.26 of the total value between January 2, 2013 and December 31, 2013, according to brokers performance report of the Nigerian Stock Exchange (NSE).
The apex regulator of the market, SEC, aimed to recapitalise the firms and make them more active in their businesses which has been creating worry for many stock broking firms.
Initially, the SEC gave January 1, 2015 as deadline for stock broking firms to recapitalise but latter extended by nine months.
Stanbic IBTC Stockbrokers Limited, FBN Securities Limited and CSL Stockbrokers Limited are the top three stock broking firms in Nigeria, according to NSE data obtained by Daily Trust. The three stockbrokers accounted for N57.907 billion translating to 26.69 per cent of the total cash value traded on the NSE between January and December 2014.
Other firms on the top 10 list are Chapel Hill Denham Mgt Limited, Rencap Securities Nigeria Limited, BGL Securities Limited, Cardinalstone Securities Limited, Cordros Capital Limited, Readings Investments Limited and Meristem Securities Limited.
This development showed that there were many active stock broking firms that had not been active with their businesses.
However, on the volume side, 10 stock broking firms accounted for 66.53 per cent in 2014 of the total volume between January 2, 2014 and December 31, 2014 as against 43.42 per cent in 2013.
The 10 top on the rank are Stanbic IBTC Stockbrokers Limited, CSL Stockbrokers Limited, Rencap Securities (Nig) Limited, Chapel Hill Denham Mgt Limited, Meristem Securities Limited, FBN Securities Limited, Cordros Capital Limited, Cardinalstone Securities Limited, BGL Securities Limited and African Alliance Stockbrokers Limited.