T-bills, Forex, other turnovers hit N63.24trn in 3 months
Motolani Oseni
Not less than a whopping N63.24trillion total transaction turnovers were recorded on the FMDQ OTC Securities Exchange, through Treasury bills (T-bills) sale, Foreign Exchange (Forex) market transactions and Bonds, among many other trading activities between January and March 2019.
For instance, FMDQ in its monthly report noted that trading activities in Treasury bills contributed the largest to overall turnover, accounting for 39.19per cent of the market or N24.79 trillion.
The report disclosed that Foreign Exchange market transactions (Spot FX and FX Derivatives) accounted for 37.89 per cent or N15.99 trillion whilst Repurchase Agreements (Repos)/Buy-Backs product categories (Repos/Buy-backs) accounted for 17.26 per cent or N10.9 trillion.
The FMDQ, also, noted that Bonds, Unsecured Placements & Takings and Money Market Derivatives representing 5.18 per cent, 0.46per cent and 0.01per cent respectively, of overall market turnover in three months.
The report noted that 10 Banks accounted for 76.66 per cent or N48.48 trillion of the overall turnover in the market, with the top three accounting for 55.26 per cent or N26.79 trillion of this subsection of the market.
“Stanbic IBTC Bank Plc, United Bank for Africa Plc and Access Bank Plc remained leaders in the value traded for the overall over-the-counter (OTC) market, ranking 1st, 2nd and 3rd respectively,” the report stated.
Among the top five include Standard chartered bank Nigeria limited and Ecobank Nigeria Limited.
According to the report, “A review of market participation for bond listings revealed that of the 29 FMDQ RMLs, only two were sponsors to bonds listed on the Exchange in the period.
Stanbic IBTC Capital Limited came 1st while FBNQuest Merchant Bank Limited came 2nd in this category, with Stanbic IBTC Capital Limited sponsoring the N30billion Stanbic IBTC Bank PLC Bond and FBNQuest Merchant Bank\ Limited sponsoring the N2.96 billion Tranche A & N2.32 billion Tranche B Series 2 Mixta Real Estate Plc Bonds.
“For the period under review, the CP market saw the participation of three RMQs out of 34 FMDQ RMQs.
The top three positions were occupied by FBNQuest Merchant Bank Limited, Stanbic IBTC Capital Limited and Coronation Merchant Bank Limited with market participation of 39.70 per cent, 24.35per cent and 13.58per cent respectively, of the total value of the CPs quoted.
“Overall, Stanbic IBTC Capital Limited was the most active sponsor, contributing N54.35 billion to the fixed income primary markets, having facilitated the admission of N30billion in bonds and N24.35 billion worth of CPs to the FMDQ platform.
FBNQuest Merchant Bank Limited was next with circa N45.00 billion in securities admissions (N5.28 billion worth of bonds and N39.71 billion worth of CPs), whilst Coronation Merchant Bank Limited, in 3rd place sponsored the quotation of N13.58 billion worth of CPs.”
“Banwo & Ighodalo, Udo Udoma & Belo Osagie and G. Elias & Co. actively participated as solicitors in the debt markets for the period”, The report added.
