In the secondary market section, FMDQ Securities Market reported a total volume of N27.9 trillion for November 2023.
The number shows a gain of 109.4% (14.6 trillion) year over year (Y/Y) and 28.43% (₦6.17 trillion) month over month (M/M) between the The 2023 and November 2022 figures.
Foreign exchange (FX), CBN bills, and money market (MM) transactions, which accounted for 71.7% of the secondary market turnover in November 2023, dominated secondary market activity, according to the exchange.
Additionally, in November 2023, the total spot market turnover for all products sold in the secondary market was ₦24.9 trillion, representing a month-over-month rise of 21.5% (₦4.4 trillion) from October 2023.
The exchange observed that an increase in turnover across all spot market product categories was responsible for the M/M increase in total spot market turnover; contributions from FX, MM, and FI transactions increased M/M by 18.3% (₦0.67 trillion), 18.9% (₦0.93 trillion), and 23.7% (₦2.8 trillion).
Furthermore, it became clear that the rise in reports and buybacks was the only factor contributing to the increase in MM turnover, countering the M/M reduction in unsecured placement and takings transactions.
Regarding FI, the growth in turnover for the segment during the review period was fueled by an M/M increase in all FI products, except for OMO Bills, which saw a decline throughout the time.
Additionally, the Spot FX market saw a total turnover of $5.17 billion (₦4.3 trillion) in November 2023, an increase of 10.9% ($0.51 billion) month over month from the turnover reported in October 2023 ($4.7 billion).
The spot exchange rate increased by 4.4% ($/₦35.14) to close at an average of $/₦832.57 in November 2023 from $/₦797.43 recorded in October 2023, indicating an appreciation of the dollar against the Naira in the FX market.
Additionally, November 2023 saw a decrease in exchange rate volatility as the Naira traded between $/₦750.14 and $/₦996.75, down from the October 2023 range of $/₦741.85 and $/₦993.82.
The Spot Fixed Income Market saw a turnover of ₦14.7 trillion in November 2023, up 23.7% (₦2.8 trillion) month over month from the ₦11.9 trillion turnover noted in October 2023.
According to FMDQ, the 21.8 percent (0.47 trillion), 8.97 percent (0.001 trillion), 16.1 percent (3.2 trillion), and 4.10 percent (0.19 trillion) increases in turnover across T-bills, FGN Bonds, CBN Special Bills, and Other Bonds drove the MoM increase in the FI market turnover. These increases offset the M/M declines of 34.9 percent (1.08 trillion) and 37.50 percent (0.03 trillion) in OMO Bills and unsecured placement/takings transactions, respectively.
