FMDQ’s April turnover down 17.3% to $39.45bn or N16.18trn

THE FINANCIAL MARKETS DEALERS QUOTATIONS (FMDQ), Nigeria’s over-the-counter securities exchange has reported a 17.3 per cent month-onmonth decline to $39.45 billion or N16.18 trillion in its market turnover in the month of April 2021. This is in comparison to the $47.69 billion or N18 trillion traded as total market turnover by its dealing members in the month of March.

The turnover accounts for all products traded at the FMDQ secondary market, including the foreign exchange, treasury bills, money market (repurchase agreements, buy-backs and unsecured placements and takings) and bonds (FGN bonds and other bonds), foreign exchange and money market derivatives. These figures, however, exclude the primary market auctions in treasury bills, bonds and foreign exchange.

The recent market data from the FMDQ seen by Business A.M. show that during the month of April 2021, $5.4 billion was traded in foreign exchange while $7.1 billion was traded in foreign exchange derivatives during the review month.

Also, in 23 working business days on the over the counter (OTC) securities exchange, there was an average daily turnover of $1.72 billion or N703.4 billion was traded on the exchange in the month of April compared to the $2.4 billion or N977.5 billion traded on the platform in March.

Furthermore, total treasury bills traded on the platform declined to $3.7 billion from $4.2 billion, while the OMO bills fell to $7.94 billion in April after climbing to $14.6 billion as part of interventionist efforts aimed at mopping up excess liquidity in existence within the over the counter exchange during the period. Though, the CBN special bills pumped into the market to sustain liquidity level in it, stood at $1.19 billion during the month under review, a drop from $3.4 billion.

Elsewhere in the bond segment of the over the counter securities exchange, a total of $4.98 billion was traded as federal government bonds, while $83 million worth of trades was exchanged in the Eurobond segment of the market; just as $2 million worth of trade value was recorded in the other bonds categories, including agency, sub-national, corporate, supranational bonds and promissory notes.

At the money market end of the secondary market on the FMDQ securities exchange, the repurchase agreements or buy-backs and unsecured placements or takings were valued at $8.7 billion and $412 million in April from $7.6 billion and $1.7 billion respectively in March, while there were records of trading activities in commercial papers and other money market derivatives in the FMDQ market.