OTC Markets Declined 17%, Closed At $58.84b In May | Independent Newspapers Limited
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OTC Markets Declined 17%, Closed At $58.84b In May

Posted: Jul 3, 2015 at 12:31 am   /   by   /   comments (0)

By Sola Alabadan,  Lagos


FMDQ OTC Plc (FMDQ) has unveiled the maiden edition of its monthly report for the Nigerian over-the-counter (OTC) markets indicating that the turnover in the OTC markets declined by 17 percent in May 2015 to close at $58.84 billion.

Tagged “OTC Monthly”,  the report generated by the research group of FMDQ, is an analytical summary of the trading activities and trends in the various segments of the Nigerian OTC markets (Foreign Exchange, Treasury Bills, Bonds, Buy-Backs, Repurchase Agreements and Money Market), providing an overview of the major occurrences in the markets within a period of one month.

The report also note that year-to-date turnover clocked $299 billion, $51 billion or 20 period above same period in 2014.

Apart from the treasury bills segment which surged 17 percent in May, all other segments of the OTC market declined compared with the previous month’s values, the report further stated.

FMDQ informed that the Foreign Exchange market turnover was $11.69 billion for May, representing a decrease of $190 million or 2 percent compared to April.

Member-Client trades totaled $10.45 billion for the month, signifying an increase of $120 million or 1 percent compared to April. On the other hand, Inter-Member trades equaled $1.23 billion, a decrease of 21 percent over the previous month’s value.

OTC Fixed Income Market which comprises Treasury Bills and Federal Government Bonds, FMDQ said the outstanding sovereign domestic debt stood at about $40 billon, 60 percent of which was made up of long term securities (FGN bonds), 37 percent short-term (T.bills) and 3 percent Treasury bonds. In addition, Open Market Operations (OMO) bills worth $17.6 billion were outstanding at the end of the month.

The turnover in Other OTC Markets segments including Repurchase Agreements/Buy-Backs and Placements/Takings, according to FMDQ, declined $13.94 billion or 47 percent, in the course of the month.