The top 10 stockbroking firms on the Nigerian Exchange (NGX) generated a combined N42.36bn in commissions during the 2024 financial year, marking a substantial 59.37 per cent increase from the N26.58bn recorded in 2023.
This impressive growth highlights sustained investor confidence despite prevailing economic challenges such as rising inflation and interest rate hikes.
Market analysts observed that these macroeconomic headwinds did little to dampen investor enthusiasm, with strong trading activity driving market volumes higher across various sectors.
Increased transaction values and higher trading volumes significantly contributed to the revenue surge for stockbroking firms.
Analysis by THE WHISTLER revealed that between January and December 2024, the top 10 stockbrokers collectively facilitated the exchange of 118.95 billion shares, valued at N3.14tn.
This accounted for 54.97 per cent of the total transaction value on the NGX during the period. In terms of volume, these firms handled 42.75 per cent of the total shares traded on the exchange.
Stockbrokers typically charge commissions on trades, with fees reaching as high as 1.35 per cent, depending on transaction size.
The sharp rise in commissions aligns with the increased value traded, which grew to N3.14tn compared to N1.97tn in 2023.
Cardinal Stone Securities Limited emerged as the market leader in 2024, executing transactions worth N696.03bn, accounting for 12.19 per cent of the year’s total market value. Stanbic IBTC Stockbrokers Limited followed closely with N642.82bn in trades, representing 11.26 per cent of total market activity, while United Capital Securities recorded N341.06bn, contributing 5.98 per cent to the overall figure.
Other top performers included APT Securities & Funds, which facilitated trades worth N286.53bn, and Cordros Securities with transactions totaling N283.01bn.
EFG Hermes recorded N190.05bn in transactions, slightly surpassing FBN Quest Securities at N189.94bn.
Meristem Stockbrokers followed with N188.15bn, while CSL Stockbrokers executed trades amounting to N175.43bn. Apel Asset Limited rounded out the group with transactions worth N144.77bn.
Together, these ten firms controlled over half of the total trading value recorded by all stockbrokers in 2024, solidifying their dominance in the market.
Despite concerns over inflationary pressures and a high-interest-rate environment, the Nigerian stock market displayed remarkable resilience throughout 2024. Investor sentiment remained strong, sustaining buying activity and benefiting the top-performing stockbrokers.
While inflation and monetary tightening posed challenges, analysts noted that these factors did not significantly hinder the market’s performance. Instead, leading brokerage firms maintained their market dominance, playing a crucial role in driving NGX growth.
Looking ahead, analysts remain optimistic about the prospects for sustained expansion in Nigeria’s capital markets.
As the market continues to navigate macroeconomic uncertainties, strong investor confidence and strategic trading activities are expected to support further growth in the sector.
