FMDQ Market turnover rises by 28.4%, hits N27.9trn in November

FMDQ Securities market has reported a significant increase in its secondary market turnover for November 2023. The total turnover reached N27.9 trillion, marking a month-on-month increase of 28.43 percent (N6.17 trillion) and a year-on-year increase of 109.4 percent(N14.6 trillion) compared to October 2023 and November 2022 figures.

The exchange highlighted that foreign exchange (FX), CBN bills, and money market (MM) transactions were the dominant activities in the secondary market, accounting for 71.7 percent of the total turnover in November 2023.

Furthermore, the total spot market turnover for all products traded in the secondary market during the same period amounted to N24.9 trillion. This represented a month-on-month increase of 21.5 percent (N4.4 trillion) compared to October 2023 figures.

The exchange attributed the increase in spot market turnover to growth across all spot market product categories. Specifically, FX, MM, and FI transactions contributed to the rise, increasing by 18.3 percent (N0.67 trillion), 18.9 percent (N0.93 trillion), and 23.7 percent (N2.8 trillion) respectively, on a month-on-month basis.

Further, it pointed out that the increase in MM turnover was solely driven by an uptick in repos/buy-backs, offsetting the M/M decline in unsecured placement/takings transactions.

For FI, the uptick in turnover for the segment within the period was driven by a M/M increase across all FI products, excluding OMO Bills which decreased during the period under review.

Also, the total turnover for Spot FX market in November 2023 was $5.17 billion (N4.3 trillion), representing a M/M increase of 10.9 per cent ($0.51 billion) from the turnover recorded in October 2023 ($4.7 billion).

In the FX Market, the dollar appreciated against the Naira, with the spot exchange rate increasing by 4.4 percent ($/N35.14) to close at an average of $/N832.57 in November 2023 from $/N797.43 recorded in October 2023.

Further, exchange rate volatility decreased in November 2023 as the Naira traded within an exchange rate range of $/N750.14 – $/N996.75, compared to $/N741.85 – $/N993.82 recorded in October 2023.

In Spot Fixed Income Market, FI market turnover in November 2023 was N14.7 trillion, representing a MoM increase of 23.7 per cent (N2.8 trillion) from the turnover recorded in October 2023 (N11.9 trillion).

FMDQ said the MoM increase in the FI market turnover was driven by the 161.5 per cent (N3.2 trillion), 21.8 per cent (N0.47 trillion), 4.10 percent (N0.19 trillion) and 8.97 per cent (N0.001 trillion) increase in turnover across T-bills, FGN Bonds, CBN Special Bills and Other Bonds, offsetting the 34.9 percent (N1.08 trillion) and 37.50 percent (N0.03 trillion) M/M decline in OMO Bills and unsecured placement/takings transactions, respectively.