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

FMDQ Securities market has posted a total turnover of N27.9 trillion in its secondary market segment for November 2023.

The figure represents a month-on-month (M/M) increase of 28.43 per cent (₦6.17 trillion) and a year-on-year (Y/Y) increase of 109.4 per cent (14.6 trillion) from October 2023 and November 2022 figures.

According to the exchange, foreign exchange (FX), CBN bills and money market (MM) transactions dominated secondary market activity, accounting for 71.7 per cent of the total secondary market turnover in November 2023.

Also, total spot market turnover for all products traded in the secondary market in November 2023 was ₦24.9 trillion, representing a M/M increase of 21.5 per cent (₦4.4 trillion) from October 2023 figures.

The exchange noted that the M/M increase in total spot market turnover was jointly driven by an increase in turnover across all spot market product categories, with contributions by FX, MM and FI transactions increasing M/M by 18.3 per cent (₦0.67 trillion), 18.9 per cent (₦0.93 trillion) and 23.7 per cent (₦2.8 trillion).

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 (₦4.3 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 per cent ($/₦35.14) to close at an average of $/₦832.57 in November 2023 from $/₦797.43 recorded in October 2023.

Further, exchange rate volatility decreased in November 2023 as the Naira traded within an exchange rate range of $/₦750.14 – $/₦996.75, compared to $/₦741.85 – $/₦993.82 recorded in October 2023.

In Spot Fixed Income Market, FI market turnover in November 2023 was ₦14.7 trillion, representing a MoM increase of 23.7 per cent (₦2.8 trillion) from the turnover recorded in October 2023 (₦11.9 trillion).

FMDQ said the MoM increase in the FI market turnover was driven by the 161.5 per cent (₦3.2 trillion), 21.8 per cent (₦0.47 trillion), 4.10 per cent (₦0.19 trillion) and 8.97 per cent (₦0.001 trillion) increase in turnover across T-bills, FGN Bonds, CBN Special Bills and Other Bonds, offsetting the 34.9 per cent (₦1.08 trillion) and 37.50 per cent (₦0.03 trillion) M/M decline in OMO Bills and unsecured placement/takings transactions, respectively.