FMDQ records N21.7 trillion turnover in October

FMDQ Securities market has recorded a total turnover of N21.7 trillion in its secondary market segment in October.

The figure represents a month-on-month (MoM) decrease of 6.8 per cent (₦1.57 trillion) and year-on-year (YoY) increase of 60.27 per cent (8.16 trillion) from September 2023 and October 2022 figures, respectively.

A breakdown of activities in the segment during the period showed that money market and foreign exchange (FX) transactions dominated secondary market activity, accounting
for 80.7 per cent of the turnover.

Also on the spot market, total turnover for all products traded in the secondary market was ₦20.5 trillion in October 2023, representing a MoM decrease of 4.02 per cent (₦0.86 trillion) from September 2023 figures.

According to the exchange, the MoM dip in total spot market turnover was jointly driven by the 38.24 per cent (₦3.04 trillion) and 11.89 per cent (₦0.49 trillion) decrease in MM and FX turnover, offsetting the 29.04 per cent (₦2.68 trillion) increase in Fixed Income (FI) turnover respectively.

Further, the decline in MM turnover was jointly driven by a decrease in repos/buy-backs and unsecured placement/takings transactions respectively.

Conversely, the uptick in FI turnover was driven by a MoM increase across all FI products, excluding T.Bills and FGN Bonds which decreased in the review period.

For the spot FX market, its turnover stood at $4.66 billion (₦3.66 trillion) within the period, representing a MoM decrease of 14.96 per cent ($0.82 billion) from the turnover recorded in September 2023 ($5.48 billion).

In the FX market, the dollar appreciated against the Naira, with the spot exchange rate ($/₦)
increasing by 5.34 per cent ($/₦40.41) to close at an average of $/₦797.43 in October. 2023 from $/₦757.02 recorded in September. 2023.

Additionally, exchange rate volatility increased during the period as the Naira traded within an exchange rate range of $/₦741.85 – $/₦993.82 compared to $/₦722.39 – $/₦780.00 recorded in September 2023.

In the fixed income market, turnover was ₦11.91 trillion in October 2023, representing a MoM increase of 29.04 per cent (₦2.68 trillion) from the turnover recorded in September 2023 (₦9.23 trillion). The MoM increase in the FI market turnover was driven by the 5.10 per cent (₦0.15trn), 170.76 per cent (₦2.92 trillion), and 24.06 per cent (₦0.01 trillion) increase in turnover across OMO Bills, CBN Special Bills and Other Bonds, offsetting the 12.28 per cent (₦0.28 trillion) and 5.68 per cent (₦0.13 trillion) MoM decline in T.Bills and FGN Bonds transactions, respectively.

Consequently, trading intensity (TI) for T.Bills and FGN bonds decreased MoM by 0.06 and 0.01 to 0.42 and 0.11, respectively.

Further breakdown of activities on the segment indicated that T.bills and FGN Bonds within the >6M – 12M and >20Y tenors respectively were the most traded sovereign FI securities, accounting for 33.97 per cent (₦1.41 trillion) and 19.06 per cent (₦0.79 trillion) of the secondary market turnover for sovereign FI securities in the spot market, respectively.l

Also within the period, total turnover in the MM segment decreased MoM by 38.24 per cent (₦3.04 trillion) to ₦4.91 trillion. The MoM decrease was driven by the 36.03 per cent (₦2.72 trillion) and 80.00 per cent (₦0.32 trillion) decrease in repos/buy-backs and unsecured placement/takings transactions, respectively.