Stockbroking firms drive N848.4bn in Q3 trading activity amid market volatility

BY MOTOLANI OSENI

In the Nigerian stock market, ten stockbroking firms traded shares worth n848.424 billion from July to September 2024, representing 57.63 per cent of the total trades executed during the third quarter (q3).

The broker performance report from the Nigerian exchange (NGX) revealed that these firms accounted for 46.92 per cent of the total volume, with transactions totaling 37.291 billion shares.

Stanbic IBTC stockbrokers led in trading value, handling n264.899 billion (17.99 per cent), followed by united capital securities with n145.680 billion (9.90 per cent) and Cardinalstone securities at n140.877 billion (9.57 per cent). Other notable firms included investment one stockbrokers, Cordros securities, and FBN quest securities, contributing significantly to overall trading volumes.

The NGX has been promoting competition among stockbrokers since September 2011 by ranking them based on transaction value and volume.

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Despite a 1.5 per cent decline in the stock market during q3, year-to-date equity growth as of September 30, 2024, rose by 31.81 per cent.

The all-share index, which opened the quarter at 100,057.49 basis points, dropped to 98,558.79 points by the end of September but remains up from 74,773.77 points at the end of 2023.

Market experts, including David Adnori from Highcap securities limited, noted that trading sentiment among investors is a critical factor. However, there is optimism for continued positive momentum due to impending banking sector recapitalization and strong quarterly results.

Looking ahead, the chief operating officer of Investdata consulting limited anticipates mixed sentiment in the market, driven by bargain hunting and profit-taking as q3 earnings reports approach.

Investors are encouraged to capitalize on price corrections amid ongoing volatility, with an emphasis on seizing opportunities during pullbacks.