FMDQ secondary market turnover dips by 10.9% in September

Total secondary market turnover on FMDQ Exchange for the month of September stood at ₦35.9 trillion.The figure represents a Month on Month decrease of 10.9 per cent (₦4.43 trillion) and a Year on Year increase of 54.6 per cent (₦12.7 trillion) from August 2024 and September 2023 figures respectively.

According to the exchange Financial Market Monthly report for September 2024, Foreign Exchange (FX) and Money Market (MM) transactions dominated secondary market activity, jointly accounting for 74.6 per cent of the total secondary market turnover within the period.

The exchange noted that total spot market turnover for all products traded in the secondary market in September 2024 was ₦33.5 trillion, representing a MoM decrease of 10.7 per cent (₦4.05 trillion) from August 2024 figures.

It explained that the MoM decrease in total spot market turnover was driven by the decrease in turnover across the FX, MM, and FI turnover by 4.1 per cent (₦0.7 trillion), 3.9 per cent (₦0.4 trillion), and 24.8 per cent (₦3.00 trillion), respectively.

FMDQ pointed out that the decrease in MM turnover was driven by the MoM decrease across all MM product categories. Similarly, it stated that the decrease in FI turnover was driven by the MoM decrease across all FI product categories, whilst CBN Special Bills remained inactive.

In addition, the Naira depreciated against the dollar in the Foreign exchange (FX) market with the spot exchange rate ($/₦) increasing by 0.40 per cent ($/₦6.33) to close at an average of $/₦1,592.89 in September 2024 from $/₦1,586.56 recorded in August 2024.

Further, exchange rate volatility increased significantly in September 2024 as the Naira traded within an exchange rate range of $/₦1,539.65 –$/₦1,667.42 compared to $/₦1,543.84 –$/₦1,617.08 recorded in August 2024.

Also, total turnover in the MM segment decreased MoM by 3.9 per cent (₦0.39 trillion) to ₦9.4 trillion in September 2024. The MoM decrease was jointly driven by the 3.7 per cent (₦0.4 trillion) and the 41.6 per cent (₦0.03 trillion) decrease in Repos/Buy-backs and Unsecured Placement/Takings, respectively.