Investors inject N15.78trn into FMDQ exchange market in May
Turnover at the secondary market on FMDQ Exchange increased to N15.78 trillion in May as investors injected additional N3.22 trillion on short to medium term return- bearing financial instruments in the space. Turnover in the market in April stood at N12.56 trillion.
On a month-on-month (MoM) and year-on-year (YoY) basis, the market recorded an increase of 25.67 percent (N3.22trn) and 2.53 percent (N0.39trn) from the turnover recorded in April 2023 and May 2022, respectively.
Total turnover for Spot and Derivatives Market was N13.37trillion and N2.40trillion respectively in May 2023. Spot FX Market Turnover was $6.21billion (N2.88trn) in May 2023, representing a MoM increase of 31.57 percent ($1.49bn) from the turnover recorded in April 2023 ($4.72bn).
Further, the Naira depreciated against the US Dollar in the FX market, with the exchange rate ($/N) increasing by 0.07 percent ($/N0.31) to close at an average of $/N463.39 in May 2023 from $/N463.09 recorded in April 2023, trading within a range of $/N462.23 – $/N465.13.
Similarly, in the Derivatives Market, total turnover in the FX Market segment was N2.40trillion ($5.19bn), representing a MoM increase of 22.77 percent (N0.45trn) from April 2023 figures.
The DMO sold T.bills valued at N324.43bn across its auctions in May 2023, representing a 15.41 percent (N43.33bn) MoM increase on the value of T-bills sold across its auctions in April 2023 (N281.10bn). Similarly, the DMO re-opened two (2) 10Y, one (1) 20Y and one (1) 30Y FGN Bonds worth N545.26billion in May 2023.
The total sale represented a 151.46 percent oversubscription of the amount offered, and a 1.30 percent (N7.21bn) MoM decrease on the amount sold in April 2023 (N552.26bn) for the same FGN Bond maturities. The CBN did not auction OMO Bills in the primary market for the fifth consecutive month in May 2023.
The total value of corporate bonds listed on FMDQ Exchange in May 2023 was N31.00billion compared to the previous month which witnessed no listings. In the review month, the corporate bond listings emanated from issuers in the Financial Services and Oil & Gas sectors, respectively. As a result, the total outstanding value for corporate bonds increased MoM by 1.71 percent (N27.50bn) from N1.61 trillion in April 2023 to N1.64 trillion6 in May 2023.
The total value of CPs quoted on FMDQ Exchange in May 2023 was N163.77billion, representing a MoM increase of 43.32 percent (N49.50bn) from the value of CPs quoted in April 2023.
Quoted CPs were issued by institutions from various sectors including Financial Services (17), Agriculture (4), Real Estate (3), Health and Pharmaceuticals (3), Retail (2), Manufacturing (2) and Consumer Staples (1). As a result, the total outstanding value of CPs increased MoM by 10.23 percent (N73.15bn) to N788.43billion.
