By Peter Egwuatu
FINANCIAL Market Derivative Quote (FMDQ) Over the Counter, OTC, has returned to its bullish volume in the month of May 2017, recording a total transaction value of N9.49 trillion, representing a growth of 7.32 per cent from N8.79 trillion in April.
FMDQ had, from the beginning of the year recorded continuous growth, until April, 2017 when it fell to N8.79 trillion from N13.42 trillion in March, 2017. The growth pattern in the first quarter shows January declining by 13.1 per cent, but February grew by 14 per cent and March by 10.5 per cent. The return to the bullish trend in May, however, may not bring second quarter position up to N34.22 trillion recorded in the first quarter as the cumulative so far is less than half of the Q1’17.
Data from the FMDQ shows that the Treasury Bills (T.bills) segment continued to dominate, accounting for 40.73 per cent of the turnover in May as against 40.24 per cent in April, while FGN2 bonds recorded 5.23 per cent as in May against 7.19 per cent in April 2017. Activities in the Foreign Exchange (FX) market accounted for 24.88 per cent in May’s turnover as against 27.71 per cent in April while Money Market (Repurchase Agreements (Repos)/Buy-Backs & Unsecured Placements/Takings) accounted for 29.13 per cent of total turnover for the reporting period FX Market as against 22.85 per cent in April. Transactions in the FX market settled at $6.56billion in May, a decrease of 15.03 per cent or $1.16bilion when compared with the value recorded in April at $7.72billion.
The Central Bank of Nigeria, CBN sold $0.985billon through various interventions conducted during the period under review, a 49.50 per cent from the previous month worth $1.07billion.