Stanbic IBTC Stockbrokers Limited, EFG Hermes Nigeria Limited and 10 other brokers on the Nigerian Stock Exchange (NSE) facilitated N597.441 billion transaction in the first six months of the year despite the economic impact of the COVID-19 pandemic.
This was contained in the broker performance report from January 1, 2020 to June 30, 2020. The report also revealed that the top 10stockbroking firms accounted for 59.31 per cent of the total value of shares traded year to date and 47.22 per cent of the total volume of shares traded on the NSE in the same period.
Top on the list with the most value of stocks traded is Stanbic IBTC Stockbrokers with a value of N128.269 billion, accounted for 12.73 per cent of the total value of shares traded during the period.
EFG Hermes followed with a transaction value of N118.531 billion, representing 11.77 per cent of the total value of shares traded, while Rencap Securities traded shares worth N82.240 billion or 8.16 per cent.
The total value of transactions made by CSL Stockbrokers stood at N63.505 billion or 6.30 per cent of the total value of shares traded in the period, while Cardinal Stone Securities transacted in shares valued at N50.596 billion or 5.02 per cent of the total traded shares during the period under review.
Other are Chapel Hill Denham Securities, Tellimer Capital, Cordros Securities, Meristem Stockbrokers and FBN Quest Securities, with transaction of N34.201 billion, N33.510 billion, N31.440 billion, N28.934 billion and N26.214 billion, respectively.
On the volume of shares traded from January to June, Cardinal Stone came top with trades of 6.187 billion units of shares which represents 7.37 per cent of the total units traded in the first half of the year. EFG Hermes followed with a transaction volume of 6.108 billion units of shares or 7.28 per cent of the total shares traded in the period under review, while Morgan Capital traded 5.674 billion units of shares in the period from January to June 2020.
Stanbic IBTC Stockbrokers traded 4.672 billion units of shares over the course of the period and this contributed 5.57 per cent to the overall volume of shares traded in the period, Rencap Securities traded 4.48 billion units of shares or 5.34 per cent of the total volume of shares.
Other stockbrokers are CSL Stockbrokers Ltd (3.9 billion units), Meristem Stockbrokers Ltd (2.9 billion units), Chapel Hill Denham Securities Ltd (1.9 billion units), Coronation Securities Ltd (1.8 billion units), and APEL Asset Ltd (1.8 billion units.) with a volume traded of 3.93 billion, 2.912 billion, 1.977 billion, 1.855 billion and 1.828 billion.
It has been noted that the Nigerian stock market, and indeed, the economy recorded a mixed performance for the first half of the year 2020, a year that has so far been full of surprising shocks, with equity prices and macroeconomic indices tumbling on the back of so many factors previously unforeseen by the best of forecasts, arising from the novel COVID-19 pandemic that changed economic dynamics.
The All Share Index (ASI), which mirrors the performance of the market in terms of equity price movement closed lower at 24,479.22 points on June 30, 2020, compared to 26,867.79 points at the beginning of the year, thus representing 8.89 percent loss.
Similarly, the market capitalisation, which represents the total value of investors’ assets was down by N201 billion to N12.770 trillion on June 30, 2020 from N12.971 trillion at the beginning of the year.
The chief economist/head of research, Pac research, Mr Moses Ojo said “When compared our Exchange to other Exchanges in Africa, you will realise that our Exchange has actually performed better in the first six months.
“The negative territory is expected due to what happened in the second quarter as there was uncertainty that led to lockdown amid continuous trading by investors.”
Ojo noted that the uncertainty due to COVID-19 makes it difficult to know direction of the capital market this year, saying that “For sure, if the pandemic is tackled well, we may likely see the capital market regaining and closing on a positive note this year.
“However, government policies will also play a critical role in the capital market recovery and investors’ confidence this year.”
On outlook for the market, analysts at Capital Bancorp Limited said, “The performance of the capital market will be shaped by how government policies could quickly address the coronavirus pandemic. A rise in the fortune of crude oil will bolster investor’s confidence in the nation’s capital market.
“Also, we foresee a pick in the activities of private equity firms due to the fact that equity valuations of most stocks are far below their real worth. In addition, the current valuations offer opportunities to those who want to position for long term.” They noted that “Since the first day in the third quarter started on a good note, we foresee investors positioning for interim dividends.