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Transaction in FMDQ OTC market hits N9.40trn in November

By Nkiruka Nnorom

Transactions in Over-the-Counter, OTC market rose by 17.88 per cent to N9.40 trillion, last month  cent  compared to value recorded in the previous month.

Data from the FMDQ OTC Securities Exchange for November showed that Treasury Bills, T.bills’ transactions accounted for 48.22 per cent of the total value, while turnover in the foreign exchange, FX market, accounted for 19.72 per cent of total turnover. FGN bonds and unsecured placements/Takings accounted for 4.23 per cent and 2.37 per cent of total turnover respectively.

During the month, turnover in the fixed income market settled at N4.93 trillion, 4.96 per cent or (N0.23trillion) decline over  the value recorded in the month of October.

Transactions in the T.bills market accounted for 91.93 per cent of the fixed income market turnover; outstanding T.bills at the end of the month amounted to ¦ 7.27 trillion compared N7.30 trillion posted in the previous month, while FGN bonds outstanding value increased by 0.96 per cent to close at ¦ 6.57 trillion during the period under review.

Trading intensity in the fixed income market settled at 0.63 and 0.06 for T.bills and FGN bonds respectively, with maturities between six months – one year being the most actively traded (¦1.26bn) in the period under review.

The data also showed that short-end yields of the FGN bond yield curve declined by an average of 3.06 per cent, while yields across the medium- and long-ends rose by averages of 0.55 per cent and 0.71 per cent respectively.

Member-to-member trades stood at $0.52 billion during the period under review, a decline of 6.62 per cent ($0.4 billion) compared with trades recorded in October 2016 and a decrease of 35.13 per cent ($0.28 billion) YoY, while Member-to-client trades increased by 34.81 per cent, ($1.18b billion) from the previous month and declined  by 40.92 per cent ($3.17 billion) year-on-year.

Member-to-CBN trades stood at $0.85bn in November (October – $0.37bn), representing a decline of 77.39 per cent ($2.91 billion) YoY.


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