At the moment, stockbroking fees have remained at a ceiling of 1.35 per cent over the years, despite the soaring rate of inflation and other annual regulatory charges that ASHON members pay.
Besides, the suspension of margin trading due to abuse has crippled access to liquidity for many stockbroking firms, making it difficult for them to take advantage of emerging opportunities in the market.
Addressing the members during the annual general meeting (AGM) in Lagos at the weekend, ASHON’s Chairman, Sam Onukwue, explained that the Association was working closely with the capital market regulators to address the issue of static stockbroking fees and the need to re-introduce margin trading for mutual benefits of stockbroking firms and the stock market.
“The fees chargeable for stockbroking transactions have remained static for many years, despite the continuous rise in inflation rate. The stockbroker’s income is limited to a ceiling of 1.35 per cent for years.
The association after rigorous market research has written a formal request to the SEC for an upward review of the fees specifying a floor and a ceiling including all other issues around stockbroking income including the use or misuse of vending agreements lately.
“The association has made representations to the regulatory authorities for the reintroduction of margin trading. The issues at stake are the exclusion of banking stocks in the securities to be traded as well as the need to update the rules, which was at the behest of the CBN.
He added that the association has continued to make progress against all odds.
Meanwhile, the domestic stock market yesterday halted a two-day bullish sentiment, as market capitalisation depreciated by N148 billion, amid selloffs in Aradel Holdings Plc and 22 stocks.
The all-share index declined by 249.4 points, representing a decline of 0.25 per cent to close at 98,291.53 points. Also, market capitalisation declined by N148 billion to close at N59.559 trillion.
The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are Aradel Holdings, Okomu Oil, Nestle Nigeria, Custodian Investment and Fidelity Bank.
Investor sentiment, as measured by market breadth, closed the same, as 23 stocks advanced, while 23 declined. DEAP Capital Management and Trust emerged as the highest price gainer of 10 per cent to close at N1.32, per share. UAC of Nigeria (UACN) followed with a gain of 9.90 per cent to close at N21.65, while Dangote Sugar Refinery rose by 9.69 per cent to close at N35.10 kobo.
Champion Breweries increased by 9.65 per cent to close at N3.75 kobo, while DAAR Communications added 9.26 per cent to close at 59 kobo.
On the other side, Custodian Investment led the losers’ chart with 8.98 per cent to close at N11.65 kobo, Okomu Oil followed with a decline of 6.86 per cent to close at N338.10 kobo while Consolidated Hallmark Holdings shed 6.62 per cent to close at N1.41 kobo.
Aradel Holdings depreciated by 5.85 per cent to close at N772 while McNichols was down by 4.93 per cent to close at N1.35 kobo.
The total volume traded dipped by 10 per cent to 257.552 million units, valued at N8.993 billion, and exchanged in 7,776 deals.
Transactions in the shares of Fidelity Bank led the activity with 38.209 million shares worth N559.084 million. United Bank for Africa (UBA) followed with an account of 33.788 million shares valued at N829.613 million, while Guaranty Trust Holding Company (GTCO) traded 16.739 million shares valued at N858.279 million.
Champion Breweries traded 14.44 million shares worth N54.227 million, while Zenith Bank traded 11.593 million shares worth N436.484 million.
