.NGX records N30.4 billion turnover in one week
Corporate bonds worth ₦46 billion were listed on FMDQ Exchange in August 2023, compared to July 2023 when there was no corporate bond listing.
With the development, the total outstanding value for corporate bonds increased month-on-month (MoM) by 0.07 per cent (₦1.2 billion) to ₦1,795.15 billion during the period.
Similarly, the total value of commercial papers (CPs) quoted on FMDQ Exchange in August was ₦239.04 billion representing a MoM increase of103.8 per cent (₦121.72 billion) from the value of CPs quoted in July 2023.
According to the exchange, quoted CPs were issued by institutions from various sectors including financial services (five), manufacturing (five), agriculture (five), Commodities Trading (three), real estate (three), retail (three), oil and gas (two) and transportation (two).
As a result, the total outstanding value of CPs increased MoM by 8.5 per cent (₦80.72 billion) to ₦1,029.98 billion.
FMDQ said the total turnover for the week ended September 22, 2023 in the FX Spot and Derivatives markets was $643.06 million.
This, according to the exchange, represents an increase of 127.52 per cent ($360.42 million) from $282.64 million posted during the week ended September 15, 2023.
The exchange said the week-on-week (WoW) increase in total turnover was jointly driven by the 128.54 per cent ($357.22 million) and 67.65 per cent ($3.2 million) increase in Forex Spot and Forex Derivatives turnover, respectively.
It pointed out that the WoW increase in Forex Derivatives turnover was primarily driven by the 190.48 per cent ($5.2 million) increase in FX Forwards turnover, despite the 100 per cent ($2 million) decrease in OTC Forex Futures turnover coupled with a sustained lack of activity across the Naira-Settled Exchange-Traded FX Futures market.
It added that the total value of transactions in the FX Spot market for the week ended September 22, 2023, was $635.13 million, representing an increase of 128.54 per cent ($357.22 million) from the value of transactions executed in the week ended September 15, 2023 ($277.91 million)
The exchange said there were no trades executed in the Exchange-Traded Forex Futures & extant Naira-Settled OTC Forex Futures markets for the week ended September 22, 2023.
Also, within the period, the average Nigerian Autonomous Forex Fixing (NAFEX) rate was $/₦771.14, compared to $/₦768.62 recorded in the week ended September 15, 2023, representing a depreciation of the Naira against dollar by 0.37 per cent ($/₦2.85).
Meanwhile, the equities market closed on a downturn for the second consecutive week, as a turnover of 3.91 billion shares worth N30.4 billion was recorded in 38,536 deals by investors on the floor of the Nigerian Exchange Limited (NGX), lower than a total of 2.9 billion units, valued at N47.4 billion that was exchanged hands in 44,654 deals on September 15, 2023.
The financial services industry (measured by volume) led the activity chart with 2.8 billion shares valued at N15.2 billion traded in 16,379 deals; thus contributing 70.9 per cent to the total equity turnover volume.
The oil and gas industry followed with 438.5 million shares worth N5.2 billion in 6,258 deals. The ICT industry ranked third with a turnover of 294.4 million shares worth N4.4 billion in 3,078 deals.
Further, a total of 51,116 units of bonds, valued at N4.5 million were traded in 112 deals compared to 16,562 units valued at N2.658 million transacted in 73 deals during the preceding week.
Also, 95,921 units of Exchange Traded Products (ETPs), valued at N98.3 million were recorded in 27 deals compared to a total of 94,257 units valued at N103.3 million that was transacted in 33 deals.
On the price movement chart, sell pressure on Dangote cement (-8.5 per cent) offset gains in Buafoods (+6.3 per cent) and Airtel Africa (+3.2 per cent) and triggered a decline in the All-Share index.
Specifically, the NGX All-share index and market capitalisation depreciated by 0.1 per cent to close the week at 67,324.59 and N36.847 trillion respectively.
All other indices finished higher except NGX 30, NGX Premium, NGX AFR Div Yield, NGX Lotus ll, NGX Industrial Goods, NGX Growth and NGX Pension Broad which depreciated by 0.13 per cent, 3.45 per cent, 1.72 per cent, 0.12 per cent, 4.8 per cent, 0.36 per cent and 0.14 per cent respectively while the NGX ASeM index closed flat.
As a result, the month-to-date and year-to-date gains moderated to +1.2 per cent and +31.4 per cent respectively.
Reacting to market performance, analysts at Cordros Securities said: “In the short term, we anticipate cautious trading in the local stock market due to the absence of significant positive catalysts to boost sentiments.
“Overall, we reiterate the need for positioning in only fundamentally sound stocks as the unimpressive macro environment remains a significant headwind for corporate earnings.
Vetiva Dealings and Brokerage said: “We expect similar mixed trading sessions next week, as investors remain cautious over the macro-economic outlook especially the Forex challenges, as this directly impacts foreign investments in the market.”
