Turnover in FMDQ markets for the month ended May 31, 2022, was N15.39 trillion, representing a month-on-month (MOM) decrease of 20.42% (3.95 trillion) and year on year (YoY) increase of 50.29% (N5.15 trillion), respectively.
Reports obtained by Narametrics showed that OMO, CBN Special Bills and Foreign Exchange (FX), transactions were the highest contributors to the FMDQ markets turnover in May 2022, jointly accounting for 63.03% of the total FMDQ markets turnover.
Total market turnover for all products traded in the spot market was N13.48trillionn in May 2022, representing a MoM decrease of 15.01% (N2.38trillion) from the turnover recorded in April 2022.
The MoM decrease in total spot market turnover was driven by the 27.66% (N1.05trillion) and 30.39% (N1.55 trillion) decrease in FX market and money market (MM) turnover, respectively, which offset the 3.17% (N0.22 trillion) increase in fixed income (FI) market turnover in May 2022.
The MoM increase in FI market turnover was driven by the MoM increase in CBN Special Bills and T.bills turnover by 134.97% (N1.65trillion) and 1.70% (N0.02 trillion), respectively. Although, the turnover for OMO bills, FGN Bonds and Other Bonds decreased MoM by 37.34% (N1.29 trillion), 12.74% (N0.15 trillion) and 36.75% (N0.01 trillion), respectively.
Other operational highlights
- Spot FX Market FX market turnover was N2.76 trillion ($6.58 billion) in May 2022, representing a MoM decrease of 27.56% (N1.05 trillion) from the turnover recorded in April 2022 (N3.81 trillion).
- In the FX Market, the Naira depreciated against the US Dollar, losing 0.38% ($/N1.60) to close at an average of $/N419.15 in May 2022 from $/417.55 recorded in April 2022.
- Exchange rate volatility increased in May 2022 compared to April 2022 as the Naira traded within an exchange rate range of $/N417.00 – $/N421.50 in May 2022 compared to $/N416.50 – $/N419.50 recorded in April 2022.
- FI market turnover was N7.17 trillion in May 2022, representing a MoM increase of 3.17% (N0.22 trillion) from the turnover recorded in April 2022 (N6.95 trillion). In May 2022, CBN Special Bills were the most traded FI securities, with a 135.25% (N1.65 trillion) MoM increase in turnover to N2.87trillion. Similarly, T.bills turnover increased MoM by 1.81% (N0.02 trillion). However, trading intensity for T.bills declined by 3bps to 0.25 from 0.28 in the previous month.
- T.bills within the 6M – 12M tenor range were the most traded sovereign debt securities, accounting for 40.76% (N0.86 trillion) of turnover for sovereign debt securities, while FGN Bonds with term-to-maturity of 15Y – 20Y were the most traded long-term sovereign debt securities, accounting for 12.95% (0.27 trillion) of total turnover for sovereign debt securities.
What you should know
FMDQ Group is Africa’s first vertically integrated financial market infrastructure (FMI) group positioned to provide registration, listing, quotation and noting services; integrated trading, clearing & central counterparty, settlement, and risk management for financial market transactions; depository of securities, as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited.
