FMDQ secondary market hits N35.8 trillion, turnover rises by 70.2%

The secondary market turnover of FMDQ Securities Exchange hits N35.8 trillion in December, representing a month-on-month (MoM) and year-on-year (YoY) increase of 28.49 per cent (N7.94 trillion) and 70.20 per cent (N14.77 trillion) from November 2023 and December 2022 figures, respectively.

According to the exchange, foreign exchange (FX), CBN Bills and Money Market (MM) transactions dominated secondary market activity, accounting for 73.3 per cent of the total secondary market turnover in December 2023.

Also, total spot market turnover for all products traded in the secondary market in December 2023 was N30 trillion, representing a MoM increase of 20.6 per cent (N5.15 trillion) from the November 2023 figures.

It explained that the MoM increase in total spot market turnover was jointly driven by an increase in turnover across all spot market product categories, with contributions by FX, MM and FI transactions increasing MoM by 51.27 per cent (N2.22 trillion), 22.9 per cent (N1.34 trillion) and 10.7 per cent (N1.6 trillion) respectively.

FMDQ pointed out that the increase in MM turnover was solely driven by an uptick in Repos/Buy-backs, offsetting the MoM decline in unsecured placement/takings transactions. Similarly, the uptick in FI turnover was jointly driven by a MoM increase across all FI products excluding T.Bills and CBN special bills, which declined in the review period.

Further, Spot FX market turnover stood at $7.34 billion (N6.55 trillion) within the period, representing a MoM increase of 41.9 per cent ($2.17 billion) from the turnover recorded in November 2023 ($5.17 billion).

In the FX Market, the dollar appreciated against the Naira, with the spot exchange rate ($/N) increasing by 7.8 per cent ($/N64.73) to close at an average of $/N897.30 in December 2023 from $/N832.57 recorded in Nov. 2023.

Further, exchange rate volatility increased in December 2023 as the Naira traded within an exchange rate range of $/N806.73 $/N1,099.05 compared to $/₦750.14 – $/N996.75 recorded inNovember 2023.
On the FI market turnover, the segment stood at ₦16.3 trillion, representing a MoM increase of 10.7 per cent (₦1.6 trillion) from the turnover recorded in November 2023 (₦14.7trillion).

Also, the MoM increase in the FI market turnover was driven by the
62.74 per cent (₦1.7 trillion), 166.7 per cent (₦0.05 trillion) and 17.41 per cent (₦0.35 trillion) increase in turnover across FGN bonds, other bonds and OMO Bills, offsetting the 0.6 per cent (₦0.03 trillion) and 8.92 per cent (₦0.43 trillion) MoM decline in T.Bills and CBN Special Bills, respectively.

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