Total turnover recorded in the fixed income and currency market declined by N2.66 trillion in December to settle at N7.42 trillion, reflecting the dwindling trend in the nation’s capital market. This represented 26.40 per cent decrease month-on-month and N3.14 trillion or 29.67 per cent drop year-on-year. Monthly data of transactions in the fixed income released by FMDQ OTC Securities Exchange Plc showed that bearish sentiments prevailed in the Fixed Income market within the period under review.
Activity in the fixed income segment dominated the market, contributing 34.74 per cent to the total market turnover, while activities in the Treasury Bills segment accounted for a market share of 26.27 per cent of total turnover. Further analysis of the figure released showed that secured market transactions (Repos/Buy-Backs) accounted for 25.15 per cent of total turnover in December, while FGN5 bonds’ contribution accounted for 8.94 per cent.
Activities in Unsecured Placements/Takings contributed 4.74 per cent of total turnover. Specifically, turnover in the FX market for the month settled at $10.89 billion, representing 27.41 per cent increase compared to the value recorded in November, with an average daily turnover of $0.52 billion.
Also, member-member trades increased by $0.33 billion (41.52 per cent), while member-client trades showed an increase of $2.01 billion, 25.95 per cent increase month-on-month. Spot and Swap transactions increased by $1.80 billion (25.90 per cent) and $0.65 billion (44.76 per cent) MoM, to record turnovers of $8.75 billion and $2.11 billion respectively. The total value of Fixed Income securities traded in the month of December was N2.61 trillion; a N2.87 trillion (52.32%) MoM decline. T.bills turnover came to N1.95 trillion, accounting for 74.27 per cent of total Fixed Income Market turnover.
On a YoY basis, turnover on T.bills decreased by N312.17 billion (13.79%) and on FGN bonds, increased by N74.34 billion (12.62%). Trading Intensity for T.bills and FGN bonds decreased to 0.38 and 0.11 respectively, compared to 0.78 and 0.22 recorded in the month of November. On the average, the yield curve shifted upwards by 63 basis points. Outstanding FGN bonds increased by N50.00 billion (0.85%) to settle at N5.94 trillion from N5.89 trillion recorded in the previous month.
