Emmanuel Ochayi
Stock Market Surge Driven by Top 10 Nigerian Brokers
The Nigerian stock market saw significant growth in the first 10 months of 2024, led by the top 10 stockbroking firms that collectively traded equities valued at N2.528 trillion.
This figure represents 55.08% of the total stock market value exchanged on the Nigerian Exchange Limited (NGX) over the period and marks a remarkable 57.12% increase compared to N1.609 trillion in the same period last year. This surge indicates increased activity and confidence within the Nigerian stock market.
Join our WhatsApp ChannelBreakdown of Top Stockbroking Firms’ Performance
Among the top performers, Stanbic IBTC Stockbrokers Limited led the market, executing deals worth N577.808 billion, accounting for 12.59% of the total value traded by the top 10. Following closely, Cardinalstone Securities Limited handled stocks worth N519.841 billion (11.33%), while United Capital Securities Limited traded N306.947 billion (6.69%) in equities. These top players have been instrumental in boosting the overall stock market performance, with their contributions showing the strength of brokerage firms in Nigeria’s capital market.
Other notable players in the stock market value trade included:
- APT Securities and Funds: N219.764 billion, or 4.79%
- Cordros Securities Limited: N208.015 billion, or 4.53%
- EFG Hermes Nigeria Limited: N164.461 billion, or 3.58%
- Meristem Stockbrokers Limited: N149.744 billion, or 3.26%
These firms have each contributed substantial volumes, demonstrating strong trading capacities and investor interest in Nigerian equities.
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Volume of Stocks Traded by Leading Firms
In terms of stock volume, these top firms also held significant positions. The 10 top stockbrokers accounted for approximately 94.957 billion units, which is 41.83% of the total stock volume traded over the review period. Cardinalstone Securities Limited led with 19.314 billion units, representing 8.51% of the total units traded. Stanbic IBTC Stockbrokers Limited followed with 13.028 billion units (5.74%), and Morgan Capital Securities Limited traded 11.772 billion units (5.19%).
The remaining firms in volume of stocks included:
- APT Securities and Funds: 9.144 billion units, or 4.03%
- Greenwich Trust Limited: 8.612 billion units, or 3.79%
- Meristem Stockbrokers Limited: 8.037 billion units, or 3.54%
Growth in Nigerian Stock Market Value and Investor Confidence
The Nigerian stock market’s performance has shown a positive trend in 2024, recording a year-to-date return of 30.60% by the end of October, a slight decrease from 31.81% in September.
The NGX All-Share Index, a key measure of market health, opened October at 98,558.79 points and closed at 97,651.23 points.
Market capitalisation grew significantly, starting at N56.635 trillion and reaching N59.171 trillion by the end of October, buoyed by new listings that added approximately N2.53 trillion to the equities market.
The Influence of New Listings on Stock Market Performance
The recent growth in market capitalisation was partly driven by new listings on the NGX, which attracted both local and foreign investors. These listings added liquidity and diversified the stock offerings, increasing the market’s attractiveness.
Experts highlight that these additions are essential for sustaining growth in the Nigerian stock market, as they encourage increased trading volumes and broaden investor participation.
Outlook on Stock Market in Nigeria
Market analysts suggest that the Nigerian stock market could see further gains as more companies consider going public and the NGX continues to expand its offerings. The role of top-performing stockbrokers in facilitating these trades and driving market growth has been crucial. Looking forward, the stock market is anticipated to maintain momentum, driven by factors like increasing investor confidence, policy reforms, and improvements in market infrastructure.
With the Nigerian economy facing various challenges, the market has become an attractive option for investors seeking viable opportunities. The performance of the top 10 stockbroking firms highlights the sector’s resilience and underscores the potential for continued growth within the Nigerian market.
