Economy
Fixed Income, Currencies Markets Transactions Drop 7.6% in 2020
By Adedapo Adesanya
The Fixed Income and Currencies (FIC) markets recorded a total transaction turnover of N215.1 trillion in 2020, a year-on-year decline of 7.6 per cent compared with N232.7 trillion recorded in 2019.
This was disclosed in the latest FMDQ Exchange’s FIC Monthly Report for December 2020, which indicated that the period ended December 31, 2020, total contribution was N19.9 trillion, representing a Month-on-Month (M-o-M) increase of 35.3 per cent and YoY 20.9 per cent respectively.
It was explained that Foreign Exchange (FX) and Money Market transactions were the highest contributors to the FIC markets in December 2020, jointly accounting for 59.2 per cent of the total FIC market turnover, while OMO Bills and Money Market transactions accounted for the majority of turnover in 2020, jointly contributing 50.5 per cent to total turnover.
Giving a further breakdown, the turnover indicated that FX market turnover in December 2020 stood at $19.72 billion (N7.79 trillion), representing a m-o-m increase of 81.3 per cent ($8.84billion) from the turnover recorded in November 2020 – $10.88 billion (N4.21 trillion).
This was majorly driven by increased FX intervention sales by the Central Bank of Nigeria (CBN) to Dealing Member Banks to reduce the build-up of unmet clients’ FX demand in December 2020.
Analysis of the growth in FX market turnover indicated that FX Spot and FX Derivatives turnover increased m-o-m by 60 per cent ($2.55 billion) and 94.9 per cent ($6.29 billion) respectively in December 2020, with 71.2 per cent of the increase in turnover driven by the turnover growth in FX Derivatives.
In the Over-the-Counter (OTC) FX Futures market, the FMDQ report stated that near month contract (NGUS DEC 30 2020) recorded a total outstanding notional value (NV) of $2.2 billion matured and was settled, while a new long-term (60-month or 60M) contract, NGUS DEC 31 2025 was introduced at a Futures price of N608.10/$1, representing 3.24 per cent ($/N19.07) m-o-m increase in the futures price, compared to the offer rate (N589.03/$1) of the previous 60M contract (NGUS NOV 26 2025).
The total notional value of open OTC FX Futures contracts as at December 31, 2020, stood at $8.09 billion, representing a further decrease of 9.5 per cent ($0.85 billion) from its value as at November 30, 2020 ($8.94 billion), and continuing its downward the trend since May 2020.
The average CBN Official Spot Naira/US Dollar exchange rate remained constant at N379/$1 in December 2020.
Conversely, the Naira depreciated against the US Dollar at the Investors’ and Exporters’ (I&E) FX Window, losing 2.07 per cent (N8.01/$1) to close at an average of N394.92/$1 in December 2020 from N386.91/$1 recorded in November 2020.
Also, the Naira depreciated against the US Dollar in the parallel market, losing 0.17 per cent (N 0.81/$1) to close at an average of N476.05/$1 in December 2020 from N475.24/$1 recorded in November 2020.
However the average spread between the exchange rates in the formal (I&E FX Window) and unregulated (parallel) FX markets reduced by 8.2 per cent to N81.13/$1 in December 2020, from N88.33/$1 in November 2020 due to the higher depreciation of the Naira in the I&E FX Window.
Consequently, the primary markets, average discount rates for the 91-day, 182-day and 364-day Treasury bills increased m-o-m by an average of 0.68 percentage points (ppts), to close at a range of 0.03 per cent – 1.85 per cent in December 2020, while the discount rates for CBN OMO bills decreased m-o-m by an average of 1.01 ppts to close at a range of 1.78 per cent – 6.07 per cent in December 2020.
Similarly, the coupon rates of the 15Y and 25Y FGN Bond issuances increased by an average of 1.58 ppts to close at a range of 6.95 per cent – 7.00 per cent in December 2020.
Meanwhile, the total value of T-bills and OMO bills outstanding as at December 31, 2020, remained constant m-o-m at N2.72trillion and N5.37 trillion respectively, whilst the total value of FGN Bonds outstanding as at December 31, 2020, increased M-o-M by 0.28 per cent (0.03 trillion) to N10.70 trillion from N10.67 trillion recorded as at November 30, 2020.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited managed to finish in the green territory on Monday after it marginally closed higher by 0.01 per cent.
The last minute escape from the bears was triggered by the gains posted by large-cap equities like Zenith Bank, Aradel Holdings and others, offsetting the losses recorded by GTCO, Oando, First Holdco and others.
According to data obtained by Business Post, only 29 stocks ended on the gainers’ chart, while 44 equities landed on the losers’ table, indicating a negative market breadth index and weak investor sentiment.
Universal Insurance rose by 10.00 per cent to sell for N1.32, Premier Paints appreciated by 10.00 per cent to N11.00, DAAR Communications improved by 9.93 per cent to N1.55, RT Briscoe increased by 9.92 per cent to N8.64, and Morison Industries advanced by 9.91 per cent to N10.98.
On the flip side, Omatek declined by 10.00 per cent to N2.70, Union Homes REIT declined by 9.96 per cent to N85.40, AXA Mansard shrank by 9.94 per cent to N14.31, Deap Capital decreased by 9.90 per cent to N8.46, and C&I Leasing moderated by 9.80 per cent to N6.90.
On the first trading session of this week, market participants bought and sold 762.8 million shares valued at N18.4 billion in 55,374 deals compared with the 687.4 million shares worth N15.0 billion traded in 41,553 deals last Friday, a spike in the trading volume, value, and number of deals by 10.97 per cent, 22.67 per cent, and 33.26 per cent, respectively.
Tantalizers ended the day as the most active stock with 88.5 million units sold for N329.4 million, Zenith Bank traded 40.2 million units worth N2.9 billion, Veritas Kapital transacted 39.2 million units valued at N92.1 million, Universal Insurance exchanged 29.3 million units for N38.1 million, and First Holdco transacted 27.6 million units worth N1.1 billion.
The sectorial performance yesterday showed that the mood of investors was in the sell region despite the slight growth recorded by Customs Street, as only the energy index closed in green, rising by 2.00 per cent.
The insurance counter was down by 1.99 per cent, the banking industry depleted by 0.64 per cent, the consumer goods shrank by 0.37 per cent, and the industrial goods retreated by 0.08 per cent.
When the first trading day of February 2026 ended on Monday, the All-Share Index (ASI) went up by 14.23 points to 165,384.63 points from 165,370.40 points, while the market capitalization chalked up N9 billion to finish at N106.162 trillion compared with the previous session’s N106.153 trillion.
By Adedapo Adesanya
The two major crude oil grades in the global market fell by more than 4 per cent per barrel on Monday after the most recent tensions between the United States and Iran appeared to have eased.
Brent crude futures went down by $3.02 or 4.4 per cent to settle at $66.30 per barrel, while the US West Texas Intermediate (WTI) crude futures declined by $3.07 or 4.7 per cent to $62.14 per barrel.
Last week, markets reacted to the renewed tension in the world’s most important oil-producing and exporting region, and oil prices soared.
However, this weekend, US President Donald Trump said that he believes Iran is “seriously” talking with the US, adding he hopes that negotiations could lead to an “acceptable” deal with the member of the Organisation of the Petroleum Exporting Countries (OPEC).
Market analysts noted that with the US President facing weak poll numbers, a military escalation that risks pushing petrol prices sharply higher appears unlikely ahead of the November midterm elections.
Prices were also pressured by a stronger US Dollar and milder weather forecasts. The American currency strengthened as currency traders cheered President Trump’s nomination of Kevin Warsh as the next Federal Reserve chair. A stronger Dollar makes oil more expensive for investors using other currencies.
US futures prices for diesel, used in heating and power generation, fell more than 6 per cent triggered by forecasts of milder weather in the US, the world’s largest oil consumer.
OPEC+ agreed to keep its oil output unchanged for March at a meeting, the producer group said on Sunday. The brief meeting reaffirmed that decision for March, after earlier gatherings did the same for January and February.
The eight producers – Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman – raised production quotas by about 2.9 million barrels per day from April through December 2025, roughly 3 per cent of global demand.
In November, the group froze further planned increases for January through March 2026 because of seasonally weaker consumption.
Four OPEC+ producers that have been pumping crude above their respective quotas have filed with the OPEC Secretariat updated compensation plans through June 2026, OPEC said on Monday.
The countries: Iraq, the UAE, Kazakhstan, and Oman filed updated plans to compensate for pumping above OPEC+ quotas through June 2026.
By Aduragbemi Omiyale
The duo of Presco Plc and Guaranty Trust Holding Company (GTCO) Plc has listed additional shares on the Nigerian Exchange (NGX) Limited.
The extra equities of these two publicly-listed organisations were admitted to the local stock exchange last Friday, increasing their respective total issued and fully paid-up shares.
For Presco, it listed fresh 166,666,667 ordinary shares of 50 Kobo each on the daily official list of the NGX on Friday, January 30, 2026, increasing its total issued and fully paid-up stocks from 1,000,000,000 units to 1,166,666,667 units.
The additional equities were from the rights issue of the firm allotted to shareholders on the basis of one new share for every existing six ordinary shares held as at close of business on Monday, October 13, 2025.
In a circular issued over the weekend, the NGX said, “Trading licence holders are hereby notified that additional 166,666,667 ordinary shares of 50 Kobo each of Presco Plc were on Friday, January 30, 2026, listed on the daily official list of Nigerian Exchange (NGX) Limited (NGX).
“The additional shares arose from the company’s rights issue of 166,666,667 ordinary shares of 50 Kobo each at N1,420.00 per share on the basis of one new share for every existing six ordinary shares held as at close of business on Monday, October 13, 2025.
“With the listing of the additional 166,666,667 ordinary shares, the total issued and fully paid-up shares of Presco Plc has now increased from 1,000,000,000 to 1,166,666,667 ordinary shares of 50 Kobo each.”
As for GTCO, it listed additional125,000,000 ordinary shares of 50 Kobo each at N80.00 per unit offered through private placement.
The fresh equities taken to Customs Street have raised the total issued and fully paid-up shares of GTCO from 36,425,229,514 to 36,550,229,514 ordinary shares of 50 Kobo each.
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