FMDQ OTC Records N34tn Turnover in 2 Months

Turnover on the floor of FMDQ OTC Securities Exchange, where short to medium term yielding investment activities are transacted, stood at N34.27 trillion as at end of February, 2019.

The figure represented about 19 per cent of total turnover reported in 12 months in 2018. A sustained performance of the first two months would translate to a better performance in 2019.

Turnover in 2018 stood at N182.86 trillion representing an average of turnover of N15.2trillion monthly.

Breakdown of contribution of the various segments of the market to total turnover in January and February showed that T-bills accounted for about 43.30 percent attracting N14.84trillion or $40.90billion from investors. Foreign Exchange (FX) polled about N7.91trillion representing 23.1 percent of total transaction value in the period.

Repurchase Agreements/Buy- Backs contributed 16.2 percent of total turnover in two months at N5.54trillion. Foreign Exchange Derivatives also accounted for 11.85 per cent of turnover at N4.06trillion in two months.

Investors splashed N1.73trillion (about $4.78billion) on the Federal Government Bond in the space of two months which represented 5.05 per cent of total turnover the review months of January and February.

Other investment instruments on which investors staked their money include Unsecured Placements/Takings which attracted about N151.99billion or 0.44 percent of turnover and Eurobonds, N33.77billion, representing about 0.1 per cent of turnover. Other Bonds attracted N111million from investors in the review period.

The top 10 Dealing Member (Banks) accounted for 74.79 percent (N25.63 trillion) of the overall turnover in the market, with the top three banks accounting for 50.30 per cent (N12.89 trillion) of this sub-section of the market. Stanbic IBTC Bank Plc, United Bank for Africa Plc and Access Bank Plc were the leaders in the value traded for the overall over-the-counter (OTC) market, ranking 1st, 2nd and 3rd respectively. Other top dealing banks in the order of their ranking among the top 10 are Standard Chartered Bank Nigeria Limited, Ecobank Nigeria Limited, First Bank of Nigeria Limited, Coronation Merchant Bank Limited. The rest are Citibank Nigeria Limited, First City Monument Bank Limited and Zenith Bank Plc.

FMDQ in its outlook for 2019 said, having delivered value-adding initiatives and solutions in line with its 2018 strategic focus – Market Diversification, FMDQ, leveraging on the effective support and collaboration of its stakeholders remains committed to continue working assiduously, in 2019, to deliver innovative and key market development initiatives.

The company disclosed that it would introduce new derivatives products to the financial market landscape, and expansion […]

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