The FMDQ Securities Exchange’s secondary market turnover was N35.8 trillion in December, up 28.49 percent (N7.94 trillion) month over month and 70.20 percent (N14.77 trillion) year over year from November 2023 and December 2022, respectively.
The exchange claims that transactions involving foreign exchange (FX), CBN Bills, and money market (MM) accounted for 73.3% of secondary market turnover in December 2023, dominating secondary market activity.
Additionally, in December 2023, the total spot market turnover for all products sold in the secondary market was N30 trillion, which is a MoM increase of N5.15 trillion, or 20.6%, from the November 2023 data.
It was explained that an increase in turnover across all spot market product categories contributed to the MoM increase in total spot market turnover. FX, MM, and FI transactions increased MoM by 51.27 percent (N2.22 trillion), 22.9 percent (N1.34 trillion), and 10.7 percent (N1.6 trillion), respectively.
FMDQ noted that the rise in buybacks and repos was the only factor contributing to the increase in MM turnover, offsetting the MoM decrease in takings and unsecured placements. Similarly, a MoM increase across all FI products—aside from T. Bills and CBN special bills, which decreased over the review period—was responsible for the increase in FI turnover.
Furthermore, throughout the month, the spot foreign exchange market turnover was $7.34 billion (N6.55 trillion), a MoM increase of 41.9% ($2.17 billion) over the turnover recorded in November 2023 ($5.17 billion).
The spot exchange rate ($/N) increased by 7.8% ($/N64.73) to close at an average of $/N897.30 in December 2023 from $/N832.57 recorded in November 2023, indicating an appreciation of the dollar against the Naira in the FX market.
Additionally, December 2023 saw a rise in exchange rate volatility as the Naira traded in a range of $/N806.73 to $/N1,099.05, up from November 2023’s range of $/₦750.14 to $/N996.75.
The segment’s FI market turnover was ₦16.3 trillion, which is a MoM increase of 10.7% (₦1.6 trillion) above the turnover of ₦14.7 trillion reported in November 2023.
Additionally, the 62.74 percent (₦1.7 trillion), 166.7 percent (₦0.05 trillion), and 17.41 percent (₦0.35 trillion) increases in turnover across FGN bonds, other bonds, and OMO Bills drove the MoM increase in the FI market turnover. These increases offset the MoM declines of 8.92 percent (₦0.43 trillion) and 0.6% (₦0.03 trillion) in T.Bills and CBN Special Bills, respectively.
