Cardinalstone Securities Limited and nine other stockbroker firms were responsible for 66.02 per cent of value of transactions on the trading floor of the Nigerian Exchange Limited (NGX) in 2022.
The 10 firms trade N1.55trillion worth of stocks in the year under review.
The NGX stockbrokers’ performance report between January and December of 2022 revealed that top on the list of the 10 top stockbrokers in the review period include: Cardinalstone Securities Limited which traded N571.54billion or 24.46 per cent, while Stanbic IBTC Stockbrokers Limited traded N183.9 billion or 7.87 per cent worth of equities in 12 months of 2022.
APT Securities and Funds came third after trading N179.14 billion or 7.63 per cent in the period under review.
The fourth place was occupied by Meristem Stockbrokers Limited after trading N119.23billion or 5.10 per cent while EFG Hermes Nig Limited traded N115.74 billion or 4.95 per cent, to placed itself at fifth position.
According to NGX chart, Cordros Securities Limited, traded N103.04billion or 4.41 per cent of transactions in the period under review, coming close was CSL Stockbrokers Limited with N85.61 billion or 3.66per cent of transactions.
Others on the list of NGX’s 10 top stockbrokers for 12 months under review include: Chapel Hill Denham Securities Ltd with N79.15billion or 3.39per cent, FBN Quest Securities Limited with N68.64billion or 2.94 per cent and Investment One Stockbrokers Intl Ltd with N41.233billion or 1.76 per cent worth of transactions in 2022.
In terms of volume traded, Cardinalstone Securities Limited with 76.63billion or 37.94 per cent volume of transactions leads others in 128.06billion total volume of transactions in 2022.
The top 10 stockbroker firms were responsible for 63.40per cent of the total volume between January and December 2022.
THISDAY can report that most firms’ transactions were inflow from Foreign Portfolio Investors (FPIs), domestic institutional investors and stock exposure in mutual funds.
Their major clients are foreign portfolio investors, while a few of them have significant stock exposure through collective Investment Schemes (CIS) at which they access a high volume of trading every day.
Before now, analysts have noted that these companies have some of the most diversified portfolios of clients which other firms are envious of.
The activities of these big stockbroking firms have made the stock market tilt towards oligopoly- a market dominated by few buyers and sellers who create room for a sort of imperfect competition, in order to accrue greater revenue and market share.