United Capital Securities Ltd and 9 Other Stockbroking Firms Trade N829.96bn Transactions on NGX

…THISDAY gathered that most firms’ transactions were inflow from Foreign Portfolio Investors (FPIs), domestic/institutional investors, Pension Funds Administrations and stock exposure in mutual funds as the stock market continued to rally in the first half of 2023 amid decisive government policies.


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 firms 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.


The Exchange currently has 224 stockbroking firms, including those classified by Securities and Exchange Commission (SEC) as sub-broker.


The NGX stockbrokers’ performance report between January and June of 2023 revealed that top on the list of the 10 top stockbrokers in the review period…


United Capital Securities came fourth after trading N85.5billion or 5.87per cent in the period under review.


In terms of volume traded, United Capital Securities Limited and nine others traded 76.345billion or 57.64 per cent volume of transactions in the first six months of 2023.


United Capital traded 25.158 billion or 18.99 per cent worth of transactions


Culled from ThisDay

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