The assets under the listing of the Nigerian Exchange Limited (NGX), the leading market for Exchange-traded Funds (ETFs) in the West African region market rose by N20.324 billion in the first quarter (Q1) of 2021.
This was even as trade volumes rose by 3,064 percent from nearly 0.2 million units in Q1 2020 to 5.3 million units recorded in Q1 2021.
According to the NGX Quarterly report for Q1 2021, the Nigerian Exchange Traded Products (ETPs) and ETF market witnessed a sterling performance since the rise of the COVID-19 pandemic in early 2020, resulting in market capitalisation of the twelve listed securities’ currently standing at N20.324 billion.
Analysis of the report revealed that market turnover (value traded) skyrocketed by a mammoth 4,556 per cent between Q1 2020 and Q1 2021 even as five of the listed securities were the most active during the period under review.
NewGold ETF took the lead in both value and volume traded in the ETF space as it traded 3,47 million units valued at N29.63 billion. Vetiva Griffin 30 was next, trading 814,372 units worth N13.94 million, Lotus Halal transacted 746,400 units worth N9.95 million, Meristem Value ETF sold 163,09 units valued at N2.90 million while Vetiva Banking ETF traded 56,116 units valued at N232,397.
This means that over 5.25 million units were traded and valued at N29.656 billion in the period under review. However, foreign participation dominated the ETF market as 92 percent of foreign investors’ outclassed domestic investors (8 percent).
Further analysis revealed that ten brokers drove 99.8 percent of total transaction value and 96.6 per cent of total volumes of ETFs traded in Q1 2021.
Stanbic IBTC Stockbroker retains its top position in this category, having traded in stocks worth N88.2 billion between January and March 2021, representing 12.99 percent of the total value of shares traded in the period under review. Cardinalstone Securities followed on the list with trading in stocks valued at N47.36 billion, accounting for 6.97 percent of the total value of shares traded in the first quarter of the year.
ABSA Securities Nigeria was next with its total trades valued at N41.53 billion in the period under review representing 6.12 percent of the total value recorded in the stock exchange market while Rencap Securities also traded in stocks worth N35.81 billion, to stand fourth on the list as it accounted for 5.27 per cent of the recorded trades in monetary terms.
