FX spot market turnover rises by 85.6 per cent on FMDQ

Foreign Exchange spot and derivatives markets recorded a turnover of $1,641.18 million for the week ended March 22, 2024, representing an increase of 85.6 per cent ($756.88 million) from $884.3 million achieved in the previous week.

According to FMDQ Securities Exchange, the week-on-week (WoW) increase in the total turnover was driven by the 91.3 per cent ($783.04 million) increase in FX spot turnover, despite the 100 per cent ($26.16 million) decrease in FX derivatives turnover.

The exchange said the WoW decrease in FX derivatives turnover was jointly driven by the 100 per cent ($26.16 million) decrease in FX Forwards turnover and the continued lack of activity in both the Exchange-Traded FX Futures and Cleared Naira-Settled Non-deliverable Forwards markets.

Also, the total value of transactions in the FX Spot market, for the week ended March 22, 2024, hits $1,641.18 million, representing an increase of 91.3 per cent (783.04 million) from the value of transactions executed in the week ended March 15, 2024 ($858.14 million).

In addition, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate within the period was $/₦1,504.58, compared to $/₦1,607.38 recorded in the week ended March 15, 2024.

In the equities market, a total turnover of 1.7 billion shares worth N48.7 billion was recorded in 45,237 deals by investors on the floor of the exchange, in contrast to a total of 1.7 billion units valued at N52.9 billion that was exchanged in 44,713 deals on March 15, 2024.

At the close of transactions last week, the financial service industry (measured by volume) led the activity chart with 1.2 billion shares valued at N31.1 billion traded in 23,066 deals; thus contributing 73.4 per cent to the total equity turnover. The conglomerate industry followed with 123.2 million units worth N1.7 billion in 3,205 deals.

The third place was the consumer goods industry, with a turnover of 104.8 million shares worth N5.2 billion in 6,166 deals.
Trading in the top three equities namely United Bank for Africa Plc, FBN Holdings Plc and Access Holdings Plc (measured by volume) accounted for 564.882 million shares worth N16.99 billion in 8,493 deals, contributing 32.6 per cent to the total equity turnover volume.

A total of 10.56 million units of Exchange Traded Products (ETPs), valued at N131.5 million were traded in 184 deals compared with a total of 19,403 units valued at N8.143 million transacted last week in 79 deals.

Also, 68,735 units of bonds, valued at N71.4 million were traded in 20 deals compared to a total of 229,700 units valued at N241.4 million transacted in 31 deals during the preceding week.

On the price movement chart, the stock market closed the week on a downturn last week as investors leveraged the price appreciation recorded in the market in the past few weeks to recoup their investment. As a result, the NGX all-share index and market capitalisation depreciated by 0.4 per cent to close the week at 104,647.37 and N59.169 trillion respectively.