OTC Market Recorded N13.7t Turnover In July

The over-the-counter (OTC) trading platform operated by FMDQ Plc for fixed income securities, among others, at the weekend reported a turnover of N13.70 trillion for the month of July. This represented a N4.03 trillion or 42 per cent increase over the value recorded in June, just as it was N7.16 trillion or 109 per cent greater than the comparable period of 2014. Activities in the treasury bills and foreign exchange segments continued to dominate the OTC market, according to FMDQ, accounting for 66 per cent of total turnover; up from 64 per cent recorded in the previous month, while FGN bonds increased by 1 per cent to 7 per cent; up from 6 per cent recorded in June. Repurchase agreements and buy-backs’ contribution to total turnover dropped from 4 per cent to 16 per cent from the previous month, while unsecured placements and takings increased by 1 per cent to 11 per cent. Turnover in the foreign exchange market (member-member and member-client) settled at N3.12 trillion; N1.16 trillion or 59 per cent more than the value recorded in June, indicating an increase in market activity. Comparing year-on-year, turnover settled N1.28 trillion or 70 per cent more than the N1.84 trillion recorded in same period of 2014. Member-client trades dominated activities in the market, accounting for 85 per cent of market activity; 2 per cent less than the previous month’s value. Spot transactions accounted for 83 per cent of total turnover; up from 81 per cent recorded in the previous month, increasing by N998.55 billion or 63 per cent to settle at N2.59 trillion in the review period, while swap transactions increased by N151.34 billion or 42 per cent, whilst its contribution to foreign exchange market activity declined to 17 per cent of total turnover from last month’s 19 per cent. The dollar appreciated 0.39 per cent against the naira in the month of July to trade at an average value of $/N197.71. Meanwhile, total turnover in the fixed income market clocked N6.33 trillion, indicating a N1.99 trillion or 46 per cent increase from the value recorded in the previous month. Treasury bills transactions accounted for 85 per cent of total fixed income turnover; down from 88 per cent recorded in the previous month. On a year-on-year basis, turnover of treasury bills and FGN bonds increased 201 per cent and 57 per cent respectively.

Source - Daily Independent