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OTC Market records 5.45 % decline YoY in September
Turnover of transactions carried out in the Fixed Income and Currency (FIC) markets for the month of September 2016 amounted to ₦10.85trn; an increase of 11.30 per cent (₦1.10trn) over the value recorded in August and a 5.45 per cent (₦0.63trn) decline Year on Year (YOY).
Activities in the Foreign Exchange (FX) market for the month of September accounted for 25.74 per cent (August – 23.29 per cent), while FGN2 bonds and Unsecured Placements/Takings accounted for 7.16 per cent (August – 2.92 per cent), and 1.96 per cent (August – 4.06 per cent) of the total turnover respectively
Treasury bills (T.bills) transactions accounted for 36.85 per cent (August – 33.02 per cent) of the total turnover while Secured Money Market [Repurchase Agreements (Repos)/Buy-Backs] accounted for 28.24 per cent (August – 31.00 per cent) FX Market
Transactions in the FX market settled at $7.19billion in September, an increase of 33.10 per cent ($1.79billion) compared with the value recorded in August
The third Naira-settled OTC FX Futures contract, NGUS SEP 28 2016, with a total outstanding amount of $179.93mm, priced at $/₦296, matured and was settled within the month
The CBN5 revised the rates on all outstanding OTC FX Futures contracts, whilst a new 12-month contract – NGUS SEP 20 2017 was introduced at $1/₦243.50
Member-Member trades stood at $1.05billion in the month of September, an increase of 97.15 per cent ($0.52billion) compared with trades recorded in August and 41.53 per cent ($0.31billion) YoY
Member-Client trades also increased by 26.08%, ($1.27billion) from the previous month and 17.91 per cent ($1.34billion) YoY
In the month under review, the Naira appreciated by 1.46 per cent to close at $/₦311.62 in the inter-bank market, whilst it depreciated by 13.10 per cent to close at $/₦475.00 in the parallel market Fixed Income Market (T.bills and FGN bonds)
Turnover in the Fixed Income market for the month settled at ₦4.78trillion, 6.42% (₦0.33trillion) below the previous month’s value, with transactions in the T.bills market accounting for 83.74 per cent of the Fixed Income market turnover
Outstanding T.bills at the end of the month amounted to ₦7.01trillion (August – ₦6.62trillion) whilst FGN bonds outstanding volume increased by 1.91 per cent (₦0.12trillion) to close at ₦6.45trillion in the period under review
Trading intensity in the Fixed Income market settled at 0.60 and 0.12 for T.bills and FGN bonds respectively, with maturities between 6 months – 1 year being the most actively traded (₦1.82trillion)
The short end yields of the FGN bond yield curve gained an average of 2.38 per cent, whilst yields across the medium and long ends declined by an average of 0.12 per cent and 0.09 per cent respectively
Spread between the 10-year and 3-month benchmarks closed at 3.59 per cent points at the end of the month, compared with 1.14 per cent points recorded in August Money Market (Repos/Buy-Backs and Unsecured Placements/Takings)
Activities in the Secured Money Market (Repos/Buy-Backs) settled at ₦3.07trillion, 14.21 per cent (₦0.51trillion) below the value recorded in August. On a YoY basis, Repos/Buy-Backs turnover recorded a decline of ₦0.25trillion (7.63 per cent)
Unsecured Placements/Takings declined by 46.14 per cent (₦0.18trillion) to close the month at a turnover of ₦0.21trillion; a decline of 74.41% (₦0.62trillion) YoY Market Surveillance
The number of executed trades captured on the E-Bond trading platform for the month of September was 14,436 as against 11,533 recorded in the month of August
There was an increase of 233.92 per cent on the order book while trades on the RFQ trading venue also recorded an increase of 8.19 per cent.
Executed trades for T. bills and FGN bonds recorded an increase of 9.11 per cent and 175.88 per cent respectively.
