FMDQ FX spot and derivatives markets turnover for the week ended September 6, 2024, hits $1.08 billion, an increase of 37.8 per cent ($295.59 million) from $781.46 million recorded for the week ended August 30, 2024.
According to FMDQ Securities Exchange, the week-on-week (WoW) increase in total turnover was jointly driven by the 37.4 per cent ($291.79 million) increase in FX Spot turnover, which recorded a total value of $1.7 billion, compared to $779.96 million recorded in the week ended August 30, 2024 and the 253.3 per cent ($3.8 million) increase in FX Derivatives turnover.
The exchange stated that the WoW increase in FX derivatives turnover was solely driven by the 253.3 per cent ($3.8 million) increase in FX Forwards turnover. At the same time, there was a continued lack of activity in both the exchange-traded FX futures and cleared naira-settled non-deliverable forwards markets.
Also, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) was $/N1,608.85, compared to $/N1,600.71 recorded in the week ended August 30, 2024.
Meanwhile, the CBN floated N500 billion across the standard tenors last week. At the auction, there was no sale on the short and mid-tenored bills while a total of N459.6 billion was sold on the long end out of a total of N678 billion with the stop rate declining by seven bps from the previous level to close at 21.8 per cent.
Also, at the PMA, the DMO offered and allotted N233.31 billion across the standard tenors, while total subscriptions stood at N1.13 trillion. Stop rates on the 91-day, 182-day bill and 364-day bills declined by 120bps, 170bps and 196bps to 17 per cent, 17.5 per cent and 18.94 per cent respectively. Sequel to the auctions, we saw the 2 Sept OMO bill offered at 20.6 per cent while bids remained scarce. Furthermore, the 4 Sept NTB was quoted at 18.25/18.05, while the 27 March bill exchanged hands at 18.7 per cent.
WoW, the average benchmark yield declined by 142bps to close at 17.9 per cent. Looking ahead, analysts at Comercio Partners said: “We expect a calm session ahead of the PMA on Wednesday.”
The FGN Bonds market also witnessed quite a bullish start at the beginning of the week with trades consummated on the May 33s and 31s at 19.6 per cent and 19.4 per cent, respectively.
“We also saw the Feb 34s bid at 19.4 per cent and offered 19.15 per cent. However, as the week progressed, there was a retracement with the May 33s quoted at 19.90/19.75 and the Feb 34s at 19.80/19.5.
Furthermore, the 2031 bond was bid at 20 per cent and offered at 19.7 per cent while trades were consummated on the newly issued 2029 bond and 38s at 19.4 per cent and 17.3 per cent respectively. WoW, the average benchmark yield declined by 22bps to close at 18.4 per cent.
