Turnover in the OTC market for the month of June 2015 was N9.67trn, a decline of 17% or N1.95trn compared with the previous month’s and a 60% or N3.62trn increase compared to June 2014.
Activities in the T.bills and FX segments of the OTC markets jointly contributed 64% to the total turnover, down from 67% recorded in the previous month.
Repurchase Agreements/Buy-Backs recorded an increase over the review period whilst FX, T.bills, FGN bonds and Unsecured Placements/Takings declined.
OTC FX market
Constrained by sluggish economic and business activities, the turnover in the FX market (member-member and member-client) settled at N1.95trn, 15.29% or N352.65bn below the value recorded in May with an average daily turnover of N97.72bn.
Compared with same period in 2014, turnover in the FX market recorded a 17% or N411.60bn decline.
Member-client trades dominated activities in the market with 87% in turnover or N1.69trn of total trades. Spot transactions declined 14% or N259.96bn but contributed 81% of total turnover; up from 80% recorded in the previous month. Swaps accounted for 19%, up from 15% while trades in Forwards were negligible over the review period. The naira appreciated 0.28% against the dollar between May and June to trade at an average value of $/N196.95
Fixed Income Market (T.Bills and FGN Bonds)
Total turnover in the fixed income market was N4.33trn, a decline of 23% or N1.32bn compared with May. Activities in the T.bills market accounted for 88% of total fixed income turnover; up from 85% recorded in the previous
month. On a year-on-year basis, turnover of T.bills and FGN bonds increased 105% and 11% respectively.
Trading intensity of T.bills and FGN bonds for the month of June settled at 0.60 and 0.12 respectively against 0.75 and 0.18 recorded in May. Yields on fixed income securities in the month indicated mixed sentiments as 1M, 6M, 12M and 15Y benchmark securities declined whilst other benchmark securities inched upwards. On aggregate, the yield curve was up 23bps in the review period.
Outstanding FGN bonds stood at N4.84trn, 2% or N91.85bn above the value as at May, with market capitalisation declining N1.54bn to close at 91% of face value, or N4.41trn. T.bills outstanding on the other hand declined 2%, or N124.45bn, to stock at N6.28trn as at the end of June. Net debt issuance for the month settled at N23.20bn, indicating a decrease of 53% or N25.74bn compared with the previous month.
Maturity profile of sovereign domestic debt indicates 57% of total debt maturing within a year and 70% in less than three (3) years.
Money Market (Repurchase Agreements /Buy-Backs and Unsecured Placements/Takings)
Activities in the secured market (Repurchase Agreements/Buy-Backs) increased 1% or N19.83bn to close at N1.92trn whilst unsecured market recorded a decline of 21%, or N254.59bn during the month settling at N0.94trn.
Rates in the Money Market (Open-Buy-Back and Overnight) clocked a high of 18% and 19% respectively. However, excess liquidity towards June month-end depressed rates to as low as 7% and 8% respectively.
Market Surveillance
Total trades carried out in the fixed income segment of the OTC market in June came to 388,608 about 9% below the value recorded in May.
source: Businessday Nigeria
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