Total outstanding value of quoted CPs on FMDQ Exchange up to N826.7bn

FMDQ Trade on Monday July 31 launched its monetary markets month-to-month report for June 2023. The whole worth of business papers (CPs) quoted on FMDQ Trade in June 2023 was N52.13billion, representing a MoM lower of 68.17percent (N111.64billion) from the worth of CPs quoted in Could 2023.

Quoted CPs had been issued by establishments from varied sectors together with Monetary Providers (12), Manufacturing (3), Agriculture (2), Actual Property (2), and Commodities Buying and selling (2).

Because of this, the whole excellent worth of CPs elevated month-on-month (MoM) by 4.85percent (N38.24billion) to N826.67billion.

The whole worth of company bonds listed on FMDQ Trade in June 2023 was N17.50billion representing a 43.55percent (N13.50billion) MoM lower from Could 2023 listings.

The company bond listings emanated solely from a single issuer within the Building sector. Because of this, the whole excellent worth for company bonds elevated MoM by 0.82percent (N13.35billion) to N1.650trillion within the evaluate month.

Sovereign Securities

The Debt Administration Workplace (DMO) bought T.payments valued at N204.50billion throughout its auctions in June 2023, representing a 36.97percent (N119.93billion) MoM lower on the worth of T-bills bought throughout its auctions in Could 2023 (N324.43billion). Equally, the DMO bought FGN Bonds value N473.16billion in June 2023 through the reopening of 1 (1) off-the-run and issuance of three (3) on-the-run FGN Bonds.

The whole sale represented a 131.43percent oversubscription of the quantity provided, and a 13.22percent (N72.10billion) MoM lower on the quantity bought in Could 2023 (N545.26billion) throughout the 2 (2) 10Y, one (1) 20Y and one (1) 30Y reopened FGN Bond maturities. The CBN didn’t public sale OMO Payments within the main marketplace for the sixth consecutive month in June 2023.

FMDQ Trade famous that its secondary market turnover was N21.74trillion, representing a month-on-month (MoM) and year-on-year (YoY) improve of 37.78percent (N5.96trillion) and 19.41percent (N3.53trillion) from Could 2023 and June 2022 figures, respectively.

The Trade famous that Overseas Trade (FX), Cash Market (MM) and CBN Payments transactions dominated secondary market exercise, accounting for 80.49percent of the whole secondary market turnover in June 2023.

The report reveals that whole spot market turnover for all merchandise traded within the secondary market was N17.82trillion in June 2023, representing a month-on-month (MoM) improve of 33.24percent (N4.45trillion) from Could 2023 figures.

The MoM improve in whole spot market turnover was collectively pushed by an enchancment in turnover throughout all merchandise with FX, MM and Mounted Earnings (FI) transactions rising MoM by 65.82percent (N1.89trillion), 33.70percent (N1.39trillion) and 18.21percent (N1.16trillion), respectively.

The uptick in MM turnover was pushed by a rise in Repos/Buybacks, offsetting the month-on-month decline in Unsecured Placement/Takings transactions.

Likewise, the advance in FI turnover was pushed by a month-on-month improve throughout all FI merchandise, excluding OMO Payments and Different Bonds which decreased within the evaluate interval.

Spot FX market turnover was N4.77trillion ($7.73billion) in June 2023, representing a MoM improve of 65.82percent (N1.89trillion) from the turnover recorded in Could 2023 (N2.88trilion).

Within the FX Market, the US Greenback appreciated in opposition to the Naira, with the spot alternate charge ($/N) rising by 35.07percent ($/N162.51) to shut at a mean of $/N625.90 in June 2023 from $/N463.39 recorded in Could 2023. Additional, alternate charge volatility spiked in June 2023 because the Naira traded inside an alternate charge vary of $/N464.67 – $/N770.38 in comparison with $/N462.23 – $/N465.13 recorded in Could 2023.

Mounted Earnings (FI) market turnover was N7.52trn in June 2023, representing a MoM improve of 18.21percent (N1.16trillion) from the turnover recorded in Could 2023 (N6.36trillion). The MoM improve within the FI market turnover was pushed by the 31.88percent (N0.43trillion), 24.11percent (N0.34trillion) and 39.59percent (N0.69trillion) uptick in turnover throughout T.Payments, CBN Particular Payments, FGN Bonds which offset the MoM lower in turnover by 16.58percent (N0.30trillion) and 26.98percent (N0.003trillion) for OMO Payments and Different Bonds respectively.

Because of this, the buying and selling depth (TI) for T.Payments, OMO Payments and FGN Bonds elevated MoM by 0.09, 3.82 and 0.04 factors to 0.38, 25.50 and 0.14 respectively. T.payments and FGN Bonds inside the >6M – 12M and >20Y tenors respectively had been essentially the most traded sovereign FI securities, accounting for 30.35percent (N1.28trillion) and 17.47percent (N0.74trillion) of the secondary market turnover for sovereign FI securities within the spot market, respectively.

In June 2023, the yield unfold between the 3M and 30Y sovereign FI securities decreased by 3.13 share factors (ppts) to eight.16ppts, indicating a flattening of the sovereign yield curve. Actual (inflation-adjusted) yields remained destructive throughout the yield curve in June 2023.

Complete turnover within the MM section elevated MoM by 33.70percent (N1.39trillion) to N5.53trillion in June 2023. The MoM uptick was pushed by the 51.21percent (N1.77trillion) improve in Repos/Purchase-backs which offset the 54.74percent (N0.37trillion) lower in Unsecured Placement/Takings transactions, respectively.

The typical In a single day (O/N) charge and Open Repos (OPR) charge (secured lending charge) decreased MoM by 3.01ppts and three.00ppts respectively, to shut at a mean of 9.89percent and 9.41percent in June 2023.

Complete turnover within the FX derivatives market section was N3.92trillion ($6.35billion) in June 2023, representing a MoM improve of 63.03percent (N1.52trillion) from Could 2023 figures.

The MoM uptick within the FX derivatives turnover was collectively pushed by the 77.28percent (N0.78trillion) and 105.51percent (N0.74trillion) enchancment in FX Swaps and FX Futures turnover which offset the 1.07percent (N0.01trillion) MoM lower in FX Forwards transactions, respectively.

Within the OTC FX Futures market, the close to month contract (NGUS JUN 28, 2023) expired and open positions with a complete notional worth (NV) of $0.17billion had been settled. A far month (60M) contract, NGUS JUN 28, 2028 was launched at a Futures value of $/N1,531.07, representing a 117.60percent ($/N827.46) charge depreciation from the Futures value ($/N703.61) of the earlier far month contract NGUS MAY 31, 2028.

The cumulative NV of open OTC FX Futures contracts elevated for the seventh consecutive month to circa $6.96bn3 as at June 13, 2023, as hedging exercise continues to choose up. This represents a MoM and YoY improve of 21.89percent ($1.25billion) and 84.62percent ($3.19billion) from its worth as at Could 31, 2023 and June 30, 2022, respectively.

Market exercise within the OTC FX Futures accounted for $1.25billion value of trades in June 2023. This represents a 56.84percent ($0.45billion) MoM improve relative to the month-to-month traded worth recorded in Could 2023 ($0.79billion). Particularly, the NV of OTC FX Futures contracts traded throughout the short-dated (1M – 13M) elevated by 49.34percent ($0.39billion) to $1.19billion whereas the long-dated (14M – 60M) contracts elevated to $0.06billion value of

trades. Because of this, the 7 – 12M tenor vary recorded the very best focus in traded worth, accounting for 61.24percent ($0.76billion) of buying and selling turnover throughout thirty-three (33) of the sixty-eight (68) offers carried out within the evaluate interval.

The typical Futures value of OTC FX Futures contracts remained unchanged throughout all tenor buckets within the evaluate month relative to Could 2023.

Nevertheless, Deliverable Forwards charges in June 2023 elevated MoM throughout all tenor buckets relative to Could 2023, with the 12M deliverable FX Ahead contracts recording the very best MoM improve in value (that’s anticipated depreciation of Nigerian Naira in opposition to the US Greenback) within the evaluate month.