FMDQ Exchange Records N21.04trn Turnover

Secondary market turnover on FMDQ Exchange in December 2022 was N21.04trillion, representing a month-on-month (MoM) increase of 35.07percent (N5.46trillion) and a year-on-year (YoY) increase of 2.46percent (N500billion) from November 2022 and December 2021 figures respectively. FMDQ Exchange in its recently released financial markets monthly report for December said Foreign Exchange (FX), CBN Bills and Money Market (MM) transactions dominated secondary market activity in December 2022, accounting for 84.81percent of the total secondary market turnover. Total spot market turnover for all products traded in the secondary market was N17.57trillion in December 2022, representing a MoM increase of 40.12percent (N5.03trillion) from November 2022 figures. The MoM increase in total spot market turnover was jointly driven by an increase in turnover across all products with contributions by FI, FX and MM increasing MoM by 49.97percent (N2.74trillion), 23.59percent (N880billion) and 42.46percent (N1.41trillion), respectively in the review month. The uptrend in MM turnover was driven by an increase in Repos/Buybacks and Placements/Takings transactions. Likewise, the growth in FI turnover was jointly driven by the MoM upsurge in CBN Bills and FGN and Other Bonds, respectively which offset the MoM decrease in T.Bills turnover in December 2022.

turnover was N4.62trillion ($10.24billion) in December 2022, representing a MoM increase of 23.59percent (N880billion) from the turnover recorded in November 2022 (N3.74trillion).

FX Market, the Naira depreciated against the US Dollar, with the spot exchange rate ($/N) increasing by 1.22percent ($/N5.45) to close at an average of $/N451.21 in December 2022 from $/N445.76 recorded in Nov. 2022. Further, exchange rate volatility increased in December 2022 as the Naira traded within an exchange rate range of $/N445.33 – $/N461.67 compared to $/N444.70 – $/N446.67 recorded in November 2022. Fixed Income (FI) market turnover was N8.23trillion in December 2022, representing a MoM increase of 49.97percent (N2.74trillion) from the turnover recorded in November 2022 (N5.48trillion). The MoM increase in the FI market turnover was jointly driven by the 102.44percent (N1.72trillion), 248.49percent (N1.16trillion) and 109.64percent (N900billion) increase in OMO Bills, CBN Special Bills, FGN and Other Bonds turnover respectively, which offset the MoM decrease of 41.51percent (N1.04trillion) in T.bills turnover respectively. As a result, the trading intensity (TI) for OMO Bills, and FGN Bonds increased by 4.04 and 0.06 points to 7.19 and 0.11 respectively, whilst TI for T.bills decreased MoM by 0.24 points to 0.32. T.bills and FGN Bonds within the >6M – 12M and >10Y – 15Y tenors respectively were the most traded sovereign FI securities, accounting for 31.69percent (N1trillion) and 30.29percent (N960billion) of the secondary market turnover for sovereign FI securities in the spot market,…