New and wholly indigenous stockbroking firms are now breaking into the top 10 that account for the highest transactions in the nation’s capital market as the ranking introduced by the Nigerian Stock Exchange (NSE) in 2011 continues to stir competition among broking firms.
The NSE had in September 2011 introduced the ranking of brokers by transaction value and volume in a move aimed at stimulating demand and engenders competition in the stock broking community.
The top 10 leading firms have been the ones with either foreign affiliations or indigenous firms established years back.
However, THISDAY checks revealed that some newly-established indigenous stockbroking houses are now ranking among the top 10. For instance, Arthur Stevens Asset Management Limited was among the top 10 brokers in value terms in the last week of September. The firm accounted for N1.2 billion worth of transaction, which translated into 4.4 per cent of the N15 billion traded by the firms in the week.
Also, last week, Cardinal Stone Securities Limited traded N1.3 billion or 2.7 per cent of the N34.2 billion worth of trading recorded by the top 10 firms.
A market analyst said more indigenous firms are coming up with improved infrastructure, competent management and capacity to render services that are attracting more investors to them.
“Unlike before when institutional and high net worth investors used to believe only firms with foreign affiliations have the capacity to render top-class services, the trend is changing fast and indigenous ones are now being equipped to render quality services to clients both international and local ones because that is the only way to survive in the competitive environment,” an analyst said.
THISDAY checks revealed that Arthur Steven Asset, which began operations less than two years ago has a mission: “To be the investment firm of choice by partnering with all stakeholders to achieve success" and vision to have a vision: “To be the standard bearer for investment management service excellence in West African sub-region."
It was gathered that the founders envisioned a company that can assist Nigerians and international investors navigate the complex world of securities trading and investment management and gathered a team of young professionals with vast experience in equities and fixed income capital markets, research as well as portfolio management with proven track record to deliver its clients’ needs in term of closing complex deals and delivering on risk/return goals.
On the other hand, CardinalStone is a full service investment banking firm began operations in June 2008 and operate as an issuing house, fund manager and broker/dealer.