DMO sells N617.9b T-bills in one month, NGX records N42.4 billion turnover

By Helen Oji

The Debt Management Office (DMO) sold treasury bills valued at N617.9 billion across its auctions in June 2024.

The figure represents a 32.4 per cent (N295.7 billion) month-on-month (MoM) decline in the value of T-bills sold across its auctions in May 2024 (N913.64 billion).

Latest data from FMDQ Securities Exchange indicated that the DMO sold FGN Bonds worth N297.01 billion in the same period, representing a 56.5 per cent (N385.06 billion) MoM decrease when compared to May’s N682.1 billion.

According to the exchange, the ratio of sovereign securities sold by the DMO relative to the amount offered across its auctions in June 2024 was 125.1 per cent and 66.00 per cent for T.bills and FGN Bonds, respectively.

Also in the same period, the Central Bank of Nigeria (CBN) sold OMO Bills worth N1.8 trillion in the primary market, representing a 229.4 per cent MoM (N1.2 trillion) increase on the N538.3 billion sold in May 2024.

In the FX spot and derivatives markets, the total turnover for the week that ended on July 19 was $1.09 billion, a decrease of 1.16 per cent ($12.82 million) from $1.1 billion reported for the week ending on July 12.

FMDQ disclosed that WoW decrease in total turnover was jointly driven by the 1.15 per cent ($12.64 million) decrease in FX Spot turnover, which recorded a total value of $1.09 billion, compared to $1.1 billion recorded in the week ending on July 12, 2024, and 16.8 per cent ($0.18 million) decrease in FX Derivatives turnover.

It explained that WoW decrease in FX derivatives turnover was solely driven by the 16.8 per cent ($0.18 million) decrease in FX Forwards turnover, whilst there was a continued lack of activity in both the exchange-traded FX futures and cleared naira-settled non-deliverable forwards (Cleared USD/NGN NDFs) markets.

Also for the week ending on July 19, 2024, the average Nigerian Autonomous Foreign Exchange Fixing NAFEX) was $/N1,568.76, compared to $/N1,546.21 recorded in the week ending on July 12, 2024.

Meanwhile, a turnover of 2.8 billion shares worth N42.4 billion was recorded in 44,277 deals traded by investors on the floor of the exchange last week, in contrast to a total of 2.7 billion valued at N85.2 billion that changed hands in 40,796 deals on July 12, 2024.

The financial services industry (measured by volume) led the activity chart with 2.2 billion shares valued at N30.7 billion traded in 25,260 deals; thus contributing 77.08 per cent and 72.4 per cent to the total equity turnover volume.

The industrial goods industry followed with 246.9 million shares worth N2 billion in 2,068 deals. The third place was the oil and gas industry, with a turnover of 107.2 million shares worth N1.7 billion in 3,128 deals.

Trading in the top three equities namely Jaiz Bank Plc, Cutix Plc and FCMB Group Plc (measured by volume) accounted for 1.140 billion shares worth N4.632 billion in 2,701 deals, contributing 40.3 per cent to the total equity turnover volume.

Analysts at SCM Capital said: “Looking ahead, the equities market is expected to show mixed performance, we foresee selective buying of fundamentally sound stocks continuing into the upcoming week.

“Market activity is also anticipated to rise due to ongoing banks’ recapitalisation efforts, Q2 filings, and awaited corporate actions in the near term. Conversely, elevated interest rates in the fixed income market are likely to exert a negative influence on equities as investors.”

The NGX all-share index and market capitalisation appreciated by 0.9 per cent to close the week at 100,539.40 and N56.929 trillion respectively.

Similarly, all other indices finished higher except NGX Banking, NGX Insurance, NGX AFR Bank Value, NGX Consumer Goods, NGX Oil and Gas, NGX Growth and NGX Sovereign Bond which depreciated by 0.05 per cent, 4.86 per cent, 0.07 per cent, 0.2 per cent, 0.1 per cent, 0.43 per cent and 4.35 per cent respectively while the NGX ASeM index closed flat.

Also, NGX has announced the delisting of the shares of Niger Insurance Plc, Resort Savings and Loans Plc and RAK Unity Petroleum Plc from its facilities, effective July 18.

According to the exchange, the three companies were delisted because the three firms were operating below the listing standards of the Exchange.

The exchange added that the securities of the affected companies were also no longer considered suitable for continued listing and trading in the market.