Tuesday, July 17, 2012

Ten stockbroking firms control 53.6% trade in NSE

Ten stockbroking firms accounted for 53.58 percent of the total traded volume at the Nigerian Stock Exchange (NSE) within the period January- June 2012, figures obtained by Business Day have shown.
The stockbroking firms are Chapelhill Denham Securities Limited, RenCap Securities (Nigeria) Limited, Stanbic IBTC Stockbrokers Limited, BGL Securities Limited, Skye Stockbrokers Limited, CSL Stockbrokers Limited, ARM Securities Limited, Cordros Capital Limited, EDC Securities Limited, and Dominion Trust Limited.
In the 6-month period, these 10 stockbroking firms traded 49.2billion shares at the Nigerian Stock Exchange, which currently houses about 327 dealing member firms, out of which 234 are active.
Details of the transactions at the Nigerian bourse showed that Chapelhill Denham Securities Limited traded 11,073,241,244 shares representing 12 percent of the 49.2billion shares traded; RenCap Securities (Nigeria) Limited traded 11,056,964,744 shares or 11.99 percent.
Stanbic IBTC Stockbrokers Limited traded 9,389,934,873 shares or 10.18 percent; BGL Securities Limited traded 3,962,305,881 shares or 4.3 percent; and Skye Stockbrokers Limited traded 2,729,619,956 shares or 2.96 percent.
Others are CSL Stockbrokers Limited, which traded 2,609,423,918 or 2.83 percent; ARM Securities Limited traded 2,608,888,446 shares,amounting to 2.83 percent; Cordros Capital Limited traded 2,143,871,912 shares or 2.32 percent; EDC Securities Limited traded 1,933,182,302 shares, or 2.10 percent; and Dominion Trust Limited traded 1,917,958,738 or 2.08 percent.
In another development, another ten stockbrokers (including RenCap Securities, Stanbic IBTC Stockbrokers, Chapelhill Denham Securities, CSL Stockbrokers, ARM Securities Limited, Cordros Capital, and BGL Securities) accounted for 67.01 percent of the total value traded within the same period (January –June 2012).
Others within this pack are GTB Securities Limited, Vetiva Securities Limited, and Meristem Securities Limited. These 10 stockbroking firms traded stock worth N424.98billion in six months.
RenCap Securities traded shares valued at N125, 449,899,578.43 or 19.76 percent of N424.98billion; Stanbic IBTC Stockbrokers (N114,893,331,512.06) or 18.10 percent; Chapelhill Denham Securities (N53,646,198,685.84) or 8.45 percent; CSL Stockbrokers (N30,572,675,947.55) or 4.82 percent; ARM Securities Limited (N25,564,539,322.78) or 4.03 percent; Cordros Capital (N 16,914,387,066.75) or 2.66 percent.
Others are GTB Securities Limited (N16,804,515,467.97) or 2.65 percent; Vetiva Securities Limited (N15,525,127,367.92) or 2.45 percent; Meristem Securities Limited (N13,000,804,755.63) or 2.05 percent; and BGL Securities (N12,987,486,929.17) or 2.05 percent of the total value of stocks traded in the six-month period.
According to Albert Okumagba, Group Managing Director/Chief Executive Officer, BGL, as investor confidence is low, evidenced by a virtual wiping out of the retail segment of the market, “the handful of stockbroking firms which have a catchment of institutional clientele, virtually run the market as the oligopoly.”

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