 By Peter OBIORA InvestAdvocate Lagos (INVESTADVOCATE)- Over-the-Counter (OTC) trading activities total turnover recorded in 2016 year-to-date (y-t-d) stood at N12.73 trillion compared to N20.20trillion recorded in 2015; indicating a decline of 37 percent, according to the latest FMDQ OTC Securities Exchange Financial Markets Review Reports March 2016. The report says current economic sentiments have caused a reduction in OTC trading activities and turnover year-on-year (y-o-y). According to the report, the foreign exchange ( FX) market contributed 25.67 percent to total OTC market turnover in the period whilst the treasury bills market accounted for 30.92 percent of total turnover. Other developments in the OTC market are as follows: Trading activities in the FGN bond market increased 63.67 percent y-o-y to settle at N1.80 trillion of Repos/Buy-Backs recorded a decline of 40.34 percent in turnover whilst Unsecured Placements/Takings also declined by 48.59 percent in turnover of 2016 y-t-d saw the emergence of two (2) institutions, Diamond Bank Plc and Access Bank Plc, accounting for over 12 percent of the total market volume each. The FMDQ report said slow down in China’s economy, rebalancing of activities from investment and manufacturing to consumption and services, and declining commodity prices continues to drive slow down in global economic growth. “Nigeria continues to feel the effect of the glut in global crude oil price, decline in foreign currency (FCY) revenue, accruable to the Federal Government, continues to impede economic activities as business struggles to cope with the high cost of the dollar. The slowdown in economic activities and the opaque direction of government’s economic policies, coupled with the delay in passing the 2016 Budget, has prompted banks and foreign investors to employ a cautionary stance,” the FMDQ OTC report added. |
