FMDQ posts N59.3trn turnover in three months as CPs hit N412bn

FMDQ Securities Exchange secondary market turnover hits N59.3 trillion between June and August.

The figure is higher than N53 trillion achieved in the corresponding period in 2022. Secondary market turnover on FMDQ Exchange in August 2023 stood at ¦ 17.68 trillion, up from N15.53 trillion recorded in the same period in 2022.

Similarly, turnover on the platform closed at N19.92 trillion in July 2023, up from N19. 76 trillion posted in the same period in 2022.

In June, a total turnover of N21.7 trillion was recorded on the platform, up from N18.2 trillion posted during the corresponding period in 2022.

Also, within three months, Commercial Papers (CPs) quoted on FMDQ Securities exchange hit N412 billion, higher than the N277 billion figure achieved in the corresponding period in 2022.

The issuance of short-term corporate debt has spiked as Nigerian firms took advantage of the low cost of finance and short maturity period to boost their working capital, especially because it is cheaper and used for quick investment needs.

Experts said some companies would rather opt for commercial papers because they can be cleared from their balance sheets in a year.