Stan­bic, Ac­cess, UBA lead value trad­ing in FMDQ OTC mar­ket

Business a.m. - - FINANCE & INVESTMENT -

STAN­BIC IBTC HOLD­INGS PLC, Ac­cess Bank Plc and United Bank for Africa Plc (UBA) have been rated as the top three com­mer­cial bank­ing in­sti­tu­tions to have con­trib­uted to the growth of the over­all value traded on the FMDQ OTC Se­cu­ri­ties Ex­change from Jan­uary to Novem­ber 2018.

A re­port from the OTC ex­change made avail­able to busi­ness a.m noted that these in­sti­tu­tions ac­counted for N73.313 tril­lion over­all turnover or 58.4 per­cent of the over­all value traded on the FMDQ be­tween Jan­uary and Novem­ber 2018.

Ac­cord­ing to the re­port, “the top ten deal­ing mem­bers (Banks) ac­counted for 75.77 per­cent or N125.14 tril­lion of the over­all turnover in the mar­ket, with the top three ac­count­ing for 58.44 per­cent or N73.13 tril­lion of this sub-sec­tion of the mar­ket.”

“Stan­bic IBTC Bank, Ac­cess Bank and United Bank for Africa were the lead­ers in the value traded for the over­all over-the-counter (OTC) mar­ket, rank­ing first, sec­ond and third re­spec­tively.”

Ac­cord­ing to FMDQ re­port, Stan­dard Char­tered Bank Nige­ria Lim­ited came fourth, while Ecobank Nige­ria Lim­ited and First Bank of Nige­ria Lim­ited came fifth and sixth re­spec­tively.

Citibank Nige­ria Lim­ited ranked sev­enth, Guar­anty Trust Bank Plc came eight while Coro­na­tion Mer­chant Bank Lim­ited and Zenith Bank Plc were ranked ninth and tenth re­spec­tively.

The re­port stated that to­tal turnover for the Jan­uary to Novem­ber 2018 pe­riod amounted to N165.15 tril­lion with trad­ing ac­tiv­i­ties in Trea­sury bills con­tribut­ing the largest to over­all turnover, ac­count­ing for N65.7 tril­lion of the mar­ket.

For­eign Ex­change mar­ket trans­ac­tions (Spot FX and FX De­riv­a­tives) ac­counted for N40.13 tril­lion while Re­pur­chase Agree­ments (Re­pos)/ Buy-Backs prod­uct cat­e­gories (Re­pos/Buy-backs) ac­counted for N26.8 tril­lion.

For­eign ex­change de­riv­a­tives ac­counted for N20.5 tril­lion be­tween Jan­uary and Novem­ber 2018. A to­tal of N11.07 tril­lion and N105.5 bil­lion FGN Bonds and Agency, Sub-na­tional, Cor­po­rate & Supra­na­tional Bonds were traded be­tween Jan­uary and Novem­ber 2018 re­spec­tively.

The re­port ex­plained that “FMDQ con­tin­ues to avail its cred­i­ble and ef­fi­cient plat­form as well as tai­lor its List­ings, Quo­ta­tions and Not­ing ser­vices to suit the needs of is­suers.

“With the grow­ing in­ter­est of cor­po­rate en­ti­ties in the com­mer­cial pa­per (CP) mar­ket to fi­nance their short­term fund­ing needs, the OTC Ex­change has, fol­low­ing the due dili­gence of the re­spon­si­ble Board Com­mit­tee ap­proved the suc­cess­ful reg­is­tra­tion of the Mixta Real Es­tate PLC N15.00 bil­lion CP Pro­gramme and the Eterna PLC N10.00 bil­lion CP Pro­gramme.

“These are in ad­di­tion to the ap­proval for for­mal ad­mis­sion and quo­ta­tion of the FBNQuest Mer­chant Bank Lim­ited N7.42 bil­lion Se­ries 1 – 4 CPs un­der its N100.00 bil­lion CP Pro­gramme and the FSDH Mer­chant Bank Lim­ited N257.57 mil­lion Se­ries 7 and N15.08 bil­lion Se­ries 8 CPs un­der a N30.00 bil­lion CP Is­suance Pro­gramme on the FMDQ plat­form.

“By quot­ing these CPs on FMDQ, these is­suers are availed ben­e­fits which in­clude, but are not lim­ited to, en­hanced in­vestor con­fi­dence in the is­suer, trans­par­ent/rel­e­vant in­for­ma­tion dis­clo­sure on the is­sue, ef­fec­tive price for­ma­tion and global vis­i­bil­ity.

“As these cor­po­rate en­ti­ties and a host of oth­ers con­tinue to ef­fec­tively and sus­tain­ably meet their fund­ing needs, as well as con­trib­ute to the de­vel­op­ment of the na­tion’s debt mar­kets, FMDQ will con­tinue to take cru­cial steps, in col­lab­o­ra­tion with mar­ket stake­hold­ers, to­wards pro­mot­ing trans­parency, gov­er­nance, in­tegrity and ef­fi­ciency in the Nige­rian CP mar­ket.”

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