….as quoted CPs on FMDQ Exchange hits N117.32bn
The FMDQ Exchange has reported that the Debt Management Office (DMO) sold Treasury Bills (TBs) worth N406.10 billion in all its auctions in July this year.
The Exchange, in its ‘FMDQ Markets Monthly Report’ for the month under review, indicated that the TBs’ value increased by 0.39% (N1.59 billion) month-on-month when compared with the N404.51 billion worth of the debt instrument sold in June this year.
Also, report showed that the DMO reopened two 10-year; one 15-year and one 30-year FGN Bonds worth N657.84 billion in July and that the total sale represented a 182.73% over-subscription of the amount offered.
The FMDQ data also reflected that the total sale was higher by 39.03% (N184.68 billion) month-on-month than the N473.16 billion sold in June 2023 for the same FGN Bond maturities.
However, the report did not record any public OMO Bills auctions by the Central Bank of Nigeria (CBN) during the month under review
Also, the report didn’t record any corporate bonds listed on the FMDQ Exchange in July 2023 compared to N17.50 billion worth of corporate bonds listed in June 2023, adding that “as a result, the total outstanding value for corporate bonds remained unchanged at N1,757.95 billion in the review month.”
A further analysis of the FMDQ Monthly Report indicated that the total value of Commercial Papers (CPs) quoted on the FMDQ Exchange in July 2023 was N117.32 billion, representing M-o-M increase of 42.85% over the N35.19 billion value of CPs quoted in June 2023.
The FMDQ Exchange clarified: “Quoted CPs were issued by institutions from various sectors including Financial Services (5), Manufacturing (4), Real Estate (3), Agriculture (2), Chemical Supply & Oil Field Services (2), Commodities Trading (1), Public Sector (1), Telecommunications (1) and Consumer Staples (1).
“As a result, the total outstanding value of CPs increased MoM by 14.10% (N117.32 billion) to N949.26 billion,” it added
On the secondary market turnover, the report showed that secondary market turnover on the FMDQ Exchange in the month was N19.92 trillion, with Foreign Exchange (FX), Money Market (MM), and CBN Bills transactions dominating secondary market activity, accounting for 73.98% of the total secondary market turnover in July 2023.
Also, the report revealed that the Fixed Income (FI) market turnover was N8.43 trillion in July 2023, representing a MoM increase of 12.16% (N0.91 trillion) from the (N7.52 trillion).turnover recorded in the preceding month.
The FMDQ Exchange’s report further stated: “The MoM increase in the FI market turnover was driven by the 52.55% (N0.94 trillion), 63.75% (N0.98 trillion), and 402.37% (N0.03 trillion) uptick in turnover across T.Bills, OMO Bills.
“Other Bonds which offset the MoM decrease in CBN Special Bills and FGN Bonds transactions by 57.36% (N1.00 trillion) and 1.24% (N0.03 trillion), respectively,” it added.
