10 stock broking firms operating in Nigerian Stock Exchange (NSE) traded N606.81 billion worth of transactions at the Nigerian Stock Exchange (NSE) in five month year of 2015 trading activities.
This amount was recorded in the first five months of this year, making the ten stock broken firms to a 66.92 per cent of total value of stock transactions traded at the nation’s capital market.
The 10 firms are Stanbic IBTC Stock brokers Limited, Rencap Securities (Nigeria) Limited, CSL Stockbrokers Limited, EFCP Limited and FBN Securities Limited.
Others are Vetiva Capital Management limited, Chapel Hill Denham Securities Limited, African Alliance Stockbrokers Limited, A.R.M Securities Limited and APEL Asset Limited.
Details of the transaction shows that from January to May, 2015, Stanbic IBTC Stock brokers Limited accounted for N130.35 billion worth of transactions or 14.38 per cent of the N606.81 billion traded by the stock broken firms.
Rencap Securities (Nigeria) Limited accounted for N108.62billion or 11.98 per cent, CSL Stockbrokers Limited N108.15 billion or 11.93per cent, EFCP Limited N67.29 billion or 7.42 per cent and FBN Securities Limited. N44.1 billion, worth of deals or 4.87 per cent of total value of transactions.
On the other hand, Vetiva Capital Management limited accounted for N42.7billion or 4.71 per cent; Chapel Hill Denham Securities Limited recorded N37.7billion or 4.18 per cent, while African Alliance Stockbrokers Limited traded N26.6 billion worth deals or 2.94 per cent.
A.R.M Securities Limited also made the chart controlling about N21 billion worth of transactions or 2.33 per cent, while APEL Asset Limited traded N20 billion worth of shares or 2.21per cent of the N606.8 billion worth of deals by the big players.
Finding reveals that firms’ transactions were from inflow of Foreign Portfolio Investors (FPIs), and local institutional investors.
Their major clients are foreign portfolio investors, while a few of them have significant equity exposure through their collective Investment Schemes (CIS) or mutual funds through which they access trading volumes on daily basis.
Before now, analysts have noted that these companies have some of the most diversified portfolio of clients which others envy. There are about 241 active stock broking firms operating in the NSE.
The activities of these big stock broking forms have made the market tilt towards oligopoly- a market dominated by few buyers and sellers who create room for a sort of imperfect competition, in order to accrue greater revenue and market share.
Analysts disclosed that in addition to being the biggest trading houses for FPIs, they also play big among the local institutional and high net-worth investors.
No comments:
Post a Comment