FMDQ records 21.92 % turnover, rises to N14.85trn in November
As corporates and the government continue to exploit the OTC exchange to raise short term funds, transaction value and turnover has sustained an upward trajectory month on month.
Summary of November trading activities released by the OTC market Tuesday showed that transaction turnover in the fixed Income and Currency (FIC) markets for the month of November recorded and increase of 21.92 per cent to close the month at ₦14.85trn.
The turnover represents a 21.92 per cent or ₦2.67trllion increase from the value recorded in October. The turnover also represents a 56.70 per cent % (₦5.37trn) increase YoY1
The Treasury Bills (T.bills) market accounted for 37.81% (37.20% in October) while FGN2 bonds recorded 5.35% (6.51% in October) of total turnover in November
Activities in the Foreign Exchange (FX) market accounted for 32.27% (36.92% in October) while Money Market (Repurchase Agreements [Repos]/Buy-Backs & Unsecured Placements/Takings) accounted for 24.54% (19.27% in October) of total turnover for the reporting period
Foreign exchange (FX) market transactions in November closed at $15.08billion, reflecting an increase of 8.78 per cent or $1.22bn when compared with the value recorded in October which was $13.86bn.
Total value traded in the I&E FX Window settled at $4.51bn for November, an increase of 4.88 per cent $0.21bn relative to the value recorded in October which closed at $4.30bn.
Total value traded at the Window since inception stands at $22.37bn Inter-Member trades recorded $1.74bn in the month of November, a 90.69% increase relative to the trades recorded in October, and a 233.78% increase YoY.
The 17th Naira-settled OTC FX Futures contract, NGUS NOV 29, 2017, worth $543.05mm, matured and settled in October, whilst a new 12-month contract –NGUS NOV 28, 2018 – for $1.00bn, was introduced by the CBN at $/₦362.15 Fixed Income Market , consisting of T.bills and FGN bonds.
Turnover in the Fixed Income market in the month under review settled at ₦6.41trn, a 20.39% (₦1.09trn) increase MoM. Transactions in the T.bills market accounted for 87.60% of the overall Fixed Income market, from 85.10% the previous month Outstanding T.bills at the end of the month stood at ₦10.41trn, an increase of 5.46% (₦0.54trn) MoM (₦9.87trn in October), whilst FGN bonds outstanding value increased by 1.48% (₦0.11trn) MoM to close at ₦7.53trn, from ₦7.42trn in October
Trading intensity in the Fixed Income market for the month under review settled at 0.54 and 0.11 for T.bills and FGN bonds respectively, from 0.47 and 0.11 respectively, recorded the previous month. T.bills between the one (1) and three (3) months maturity bucket became the most actively traded, accounting for a turnover of ₦1.33trn in November
Short-term yields on the sovereign yield curve lost an average of 1.32%. Similarly, yields in the medium-term and long-term spectrum lost an average of 0.26% and 0.30% respectively
The spread between 10-year and 3-month benchmark yields closed negative at -1.63% points for November (-3.02% in October) indicating an increase in the demand for 3-month T.bills Money Market (Repos/Buy-Backs and Unsecured Placements/Takings)
Activities in the Secured Money Market (i.e. Repos/Buy-Backs) settled at ₦3.42trn in November, 59.04% (₦1.27trn) more than the value recorded in October. On a YoY basis, turnover on Repos/Buy-Backs recorded a 43.17% (₦1.03trn) increase ■ Unsecured Placements/Takings closed the month at a turnover of ₦226.46bn, a 14.38% (₦197.98bn) increase MoM and a 1.86% (₦222.33bn) increase YoY
The report showed that an average O/N7 NIBOR8 for the period under review stood at 21.62% (45.71% in October), signifying a significant increase in inter-bank liquidity Market Surveillance
The number of executed trades captured on the E-Bond trading system for the month of November amounted to 16,412 as against 14,687 recorded in October
Executed T-bills and FGN bonds trades increased by 22.77%, while FGN bonds decreased by 28.94% when compared to the previous month
Stories Bonny Amadi
