OTC market records N7.43 trillion turnover in May

Over- The-Counter (OTC) market, last month, recorded a turnover of ₦7.43 trillion. This figure, according to FMDQ OTC report was 21.22 per cent lower than the value recorded in the previous month.

A breakdown of activities in OTC last month, showed that FX transactions accounting for 13.30 per cent of the total value.

In the fixed income market, bearish sentiments prevailed in the short-, mid- and long-term maturities as yields trended upwards.Similarly, open-buy-back and overnight rates remained in the single digit range, averaging 6.54 per cent and 7.08 per cent respectively, while T.bills continued its dominance in the fixed income market, accounting for 82.51 per cent of all trades.

For the month of April, 2016, turnover recorded in the OTC market was ₦9.43 trillion; 9.86 per cent higher than the value recorded in March 2016. FX transactions accounting for 16.69 per cent (March – 18.67%) of the total value. In the fixed income market, bearish sentiments prevailed in both mid- and long-term maturities as yields trended upwards while yields declined on short-term maturities.

Open-buy-back and overnight rates experienced minimal volatility averaging 4.23 per cent and 4.71 per cent respectively, while T.bills continued its dominance in the fixed income market, accounting for 81.72 per cent (March – 78.21per cent) of all trades.

FMDQ OTC Securities Exchange had last week, signed a Memorandum of Understanding (MOU) with NMRC.The agreement, according to FMDQ, was coming on the heels of the Regulatory Supervision Collaboration Agreement, which the Exchange recently executed with the National Pension Commission, to promote enhanced and efficient pension fund governance, regulation and supervision.

The Managing Director of FMDQ, Bola Onadele, explained that the need for effective cooperation and collaboration between FMDQ and NMRC cannot be overemphasised, as the partnership would mark an essential step towards the development of the Nigerian housing sector through the introduction and deployment of initiatives aimed at launching a range of mortgage products.

The partnership would also enhance the articulation of strategies for developing the Nigerian mortgage industry through non-interest finance (e.g. Sukuk); partnership on awareness programmes, investor/market education and capacity building in Nigeria; the expansion of listing opportunities for NMRC debt securities among others.

These initiatives, according to him, are geared towards engendering market confidence and allowing NMRC to effectively connect the Nigerian mortgage industry to the DCM; and collaboration on pricing methodology, valuation framework and index development for mortgage bonds.

He explained that FMDQ, in partnership with NMRC and other key stakeholders, will engage in relevant initiatives and campaigns to educate the market on mortgage-related debt instruments such as Mortgage-Backed Securities, Real Estate Investment Trusts, among others, in readiness for the ensuing housing revolution which the Nigerian market is positioned to experience.