The top 10 stockbroking firms on the Nigerian Exchange (NGX) earned a combined total of N30.34bn in commissions during the first nine months of 2024.
This represents a substantial 50.12 per cent increase from the N20.21bn recorded in the corresponding period of 2023.
This surge in revenue was driven by increased trading volumes and higher transaction values across the NGX, reflecting sustained investor confidence despite economic challenges such as rising inflation and interest rate hikes.
Market analysts noted that these macroeconomic headwinds did little to deter investors, with strong buying activity propelling market volumes higher across various sectors.
Findings by NewsNGR showed that between January and September 2024, the top 10 stockbrokers collectively facilitated the exchange of 86.98 billion shares, valued at N2.25trn
This accounted for 55 per cent of the total transaction value recorded on the NGX during the period. In terms of volume, these brokers handled 41.77 per cent of the total shares traded on the market.
Brokerage firms typically charge commissions on trades, with fees as high as 1.35 per cent, although rates may vary depending on the size of the transaction. This steady revenue growth reflects robust market activity, despite broader economic headwinds.
The sharp growth in commissions is reflective of the increased value traded, which grew to N2.25trn as against N1.49trn recorded during the comparable period of 2023.
Stanbic IBTC Stockbrokers Limited emerged as the leading broker in terms of transaction value, accounting for N545.5bn, or 13.35 per cent of overall market transactions during the nine-month period.
Following closely was CardinalStone Securities, which recorded N416.55bn in traded shares, representing 10.19 per cent of the total transaction value.
United Capital Securities rounded out the top three, with N294.02bn worth of shares traded, contributing 7.19 per cent to the market’s total value.
Other notable players included Apt Securities & Funds, which facilitated trades valued at N204.62bn, and EFG Hermes, which exchanged shares worth N159.8bn.
The remaining firms in the top 10 were Cordros Securities (N148.41bn), Meristem Stockbrokers (N129.85bn), CSL Stockbrokers (N122.75bn), FBN Quest Securities (N116.53bn), and Chapel Hill Denham (N109.61bn).
Despite concerns over rising inflation and a high-interest-rate environment, the Nigerian stock market displayed strong resilience during the first three quarters of 2024.
Investor sentiment remained upbeat, leading to sustained buying activity, which benefited the top-performing stockbrokers.
Market analysts acknowledged that while inflationary pressures and monetary tightening posed challenges, these factors did not significantly hinder the performance of the leading stockbrokers.
Instead, the firms were able to maintain a dominant share of market activity, contributing significantly to the overall growth of the NGX.
As the market continues to navigate macroeconomic uncertainties, analysts remain optimistic about the prospects for sustained growth in Nigeria’s capital markets heading into the final quarter of the year.