10 January 2016, Lagos – As cautious optimism heralded the first week trading sessions of the year on the floor of the Nigerian Stock Exchange last week, fresh data pushed into the capital market has shown that 67.11 per cent of the total transactions for the year in terms of value were handled by 10 brokers, amounting to N1, 275,421,593,085,75
The figure, which was contained in the NSE Brokers Performance Report for the 12-month period covering January to December 2015, showed that in terms of the value of transactions handled, the top three brokers were Stanbic IBTC Stockbrokers Limited, CSL Stockbrokers Limited and Rencap Securities (Nigeria) Limited, which recorded transactions valued at N257, 908,074,754.79 (13.57 per cent), N244, 233,432,591.30 (12.85 per cent) and N205, 873,101,944.40 (10.83 per cent), respectively.
In that order, EFCP Limited came fourth with transactions valued at N159, 215,642,677.91, which translated to 8.38per cent of the total trading for the year under review.
Chapel Hill Denham Securities and FBN Securities followed EFCP in that order as they handled transactions put at N99, 363,679,041.65 (5.23 per cent) and N91, 513,635,467.59 (4.82 per cent, respectively).
In terms of the volume of transactions, CSL Stockbrokers came first with 18,195billion number of stocks handled, representing a 9.80 per cent for the year. Rencap Securities followed in that order with 14,618billion units of shares traded while Stanbic IBTC came third with 14,279billion deals.
The total volume of transactions handled by the 10 top brokers was put at 89,248billion, translating into 48.05per cent of the total transactions for the year 2015.
The Nigerian stock market had closed 2015 with a negative full-year average return of -17.36 percent, nearly a notch above -16.14 percent recorded in 2014. Approximately, this implied a loss of N1.63 trillion in 2015. Altogether, Nigerian equities had lost N3.38 trillion in the past two years, nearly a quarter of their market value of N13.226 trillion recorded at the beginning of the period.
According to reports, the Nigerian stock market tumbled to its worst performance in three years in 2015. In spite of a massive two-day rally that added N648 billion to market values of quoted equities, the benchmark index at the Nigerian Stock Exchange (NSE) indicated that investors lost almost one-fifth of the values of their portfolios during the year. Aggregate market value of all quoted equities on the NSE closed 2015 at N9.851 trillion as against its opening value of N11.478 trillion for the year, representing a loss of N1.627 trillion. The All Share Index (ASI)- the benchmark index that tracks prices of all quoted equities, indicated a negative full-year average return of -17.36 per cent.
The ASI, a value-based common index that tracks prices of all quoted companies on the NSE, doubles as Nigeria’s sovereign equity index; the barometer to measure the performance of the Nigerian investment market within a given period. The movement of the ASI, up or down, implies losses or gains in monetary value. As such, the ASI and aggregate market value of all quoted companies on the stock market move proportionately in the same direction. While new listing, delisting and supplementary listing could temporarily distort full directional view of the market capitalisation, the market over a period corrects such distortion to align capitalisation with the benchmark index.
The ASI closed 2015 at 28,642.25 points as against its opening index of 34,657.15 points. The losses in 2015 worsened the downtrend that had in 2014 marked out Nigerian equities among the worst performing stocks globally with average full-year decline of 16.14 per cent. Aggregate market value of all quoted equities had closed 2014 at N11.478 trillion as against its opening value of N13.226 trillion for the year, indicating a loss of N1.75 trillion during the year. Within the context of historic trend, the ASI had peaked above 57,000 points in 2007 and recently in 2013 closed above 41,000 points.
*Festus Akanbi – Thisday