September 5, 2017

Turnover on fixed income market falls by N1.09bn in July

By Nkiruka Nnorom

TOTAL turnover volume in the fixed income market fell by N1.09 billion at the end of July, 2017. Data from the FMDQ OTC Securities Exchange showed that N11.53 trillion turnover was recorded during the month compared to N12.62 trillion in June, representing 8.6 per cent decline.

The month-on-month (MoM) decline, according to FMDQ, was primarily driven by decreased trading activities experienced in the treasury bills, repurchase agreements (Repos)/ buy-backs and bonds product categories. Treasury Bills recorded the highest patronage during the month, accounting for N36.35 billion turnover, which represents 43.67 per cent of the total market turnover.

This was followed by transactions in repurchase agreements, which accounted for N19.05 billion turnover, representing 28.44 per cent and buy-backs and bonds product categories, which accounted for 4.60 per cent of the overall turnover. Other product categories that experienced MoM declines were foreign exchange (FX) (Spot), FX derivatives and money market derivatives, respectively accounting for 12.82 per cent , 9.20 per cent and 0.01 per cent of overall market turnover.

Meanwhile, top 10 dealing member firms led by Access Bank Plc, Stanbic IBTC Bank Plc and Ecobank Nigeria Limited accounted for N61 trillion, representing 55.70.48 per cent of the overall turnover. The top three dealing member firms, which have so far maintained their leading position for four consecutive months, contributed N24.97 trillion, representing 44.91 per cent of the overall turnover.

Others in the top 10 category include: United Bank for Africa, UBA, which ranked fourth, First Bank of Nigeria limited that occupied the fifth position and Diamond Bank Plc in the sixth place. Standard Chartered Bank Nigeria Limited, Guaranty Trust Bank Plc, Citibank Nigeria Limited and Union Bank of Nigeria, UBN, placed 7th, 8th, 9th and 10th respectively.