NIGERIA: STANBIC IBTC LED BROKERS’ PERFORMANCE AT NSE IN AUGUST

As the Nigerian stock market enters the third quarter of the year, market report has revealed that Stanbic IBTC Stockbrokers Limited led other stockbroking firms in terms of equities transactions on the Nigerian Stock Exchange for the month of August.

In volume terms, the top 10 broking firms accounted for 5,940,559,707shares, which was 54.54per cent of the total transactions recorded in the market. But Stanbic IBTC led the table with 1.194 billion shares or 10.97 per cent.

In value terms, the top 10 broking firms accounted for N86.199 billion, which was 63.43 per cent of the total worth of shares traded. Again, Stanbic IBTC led with N25.969 billion or 19.11 per cent.

According to the data uploaded on NSE portal last week, Rencap Securities Nigeria Limited occupied the second position on the volume table with 957.710 million shares or 8.79 per cent. CSL Stockbrokers Limited closed as the third   highest trader with 937.234 million shares or 8.61per cent.

FBN Securities Limited traded 859.392 million shares, representing 7.89 per cent value of the top 10 brokers’ performance, while Cardinal Stone Securities Limited followed in that order with 522.617 million shares, representing 4.80 per cent of the activities of the top 10 brokers in the period under review.

The list of the top 10 performers also included Marina Securities Stockbroking Services which traded 414.914 million shares, a 3.81 per cent of the activities for the month of August.
Others among the top 10 included: Chapel Hill Denham Management Limted-299.485million shares (2.75 per cent); African Alliance Stockbrokers Limited - 270836 million shares (2.49 per cent); Cashcraft Asset Management Limited - 243.871million shares (2.24 per cent) and Harmony Securities Limited - 239.741 million shares (2.20 per cent).

In terms of value, Rencap Securities also came second with transaction valued at N15.408 billion, representing 11.34 per cent of the top 10 stockbrokers for the month of August.
CSL Stockbrokers Limited came third with transactions in the region of N14.669 billion, representing a 10.79 per cent of the activities of the top 10 performers.

FBN Securities Limited which recorded transactions worth N7.989billion, a 5.88 per cent of the value of the top 10 brokers came fourth in the month of August.

GTB Securities Limited recorded N11.436 billion or 3.9 per cent, while Marina Securities Stockbroking Services accounted for N4.074billion or 3 per cent.

Meanwhile, stockbrokers have blamed the weak performance of the NSE indicators on factors such as the uninspiring financials presented by quoted companies, the insecurity in the country’s North east geo-political zone, as well as the undercurrents of the 2015 general elections.
The stockbrokers under the aegis of the Chartered Institute of Stockbrokers (CIS) noted that the lacklostre performance is also the result of the boom and bust cycle that equity markets are known for.

According to their assessment, the year opened on a not-too-impressive note through the first quarter, noting however that the second quarter was better, even as the third, current quarter, has not started also on a good note because of the poor financial performance by quoted companies as seen in their second quarter score-cards.

Speaking to capital market reporters, Chief Executive of Stanbic IBTC Stockbrokers Limited and Chairman, Programmes Committee of the  Chartered Institute of Stockbrokers (CIS), Akeem Oyewale, said vibrations of the election year remains a key consideration for investment at this time, particularly by offshore players in the market.

He spoke at the maiden press briefing, addressed by new President of the CIS, Albert Okumagba, saying the third and fourth quarter performance of the market “may be challenging, especially because of the security situation in the North east and the coming elections. We hope that the politicians would behave well.”

According to him however, a silver lining in the horizon would be the ability to get it right with the power sector, such that manufacturing companies are able to power their machines at cheaper cost and report bigger profit.

Okumagba, who assumed office on April 29, 2014, assured that the institute and indeed stockbrokers had learnt some lessons from the market meltdown.  He also assured that CIS was poised to begin a debt recovery drive to boost its finances.
There were also plans to review the institute’s fee structure to make it a leader in the financial services industry.

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