Economy
FMDQ Partners S&P Dow Jones Indices
By Modupe Gbadeyanka
FMDQ OTC Securities Exchange has formalised its partnership with S&P Dow Jones Indices through the signing of a memorandum of understanding (MoU) for the development and publication of co-branded fixed income indices in the Nigerian financial market at a brief ceremony on Tuesday, February 7, 2017, at FMDQ’s offices.
The partnership is to improve price discovery and transparency in the Nigerian financial markets.
In attendance to witness this landmark event were representatives of SPDJI, led by Mr Kurt Zyla, Managing Director & Global Head of Exchange Relationships, SPDJI; the Director-General, Securities and Exchange Commission (SEC), represented by Mr Stephen A. Falomo, Head, Lagos Zonal Office, SEC; Director-General of the National Pension Commission, represented by Mr Babatunde Oladipo Phillips, Head, Benefits Administration Unit; representatives of the Executive Boards of Pension Fund Operators of Nigeria; Fund Manager Association of Nigeria; Financial Markets Dealers Association; Association Of Corporate Treasurers of Nigeria; and key players in the Nigerian financial markets landscape.
FMDQ embarked on the journey towards providing reliable and credible benchmarks in 2014 with the launch of the FMDQ FGN Bond Index. Following the launch, the OTC Securities Exchange continued to identify ways to improve the existing index and align it with international best standards as set out in the International Organisation of Securities Commission (IOSCO) Principles for Financial Benchmarks. This necessitated numerous engagements with stakeholders including but not limited to fund/asset managers and financial services regulators, who all identified the governance of the index as a very critical value-add for the successful delivery of the aforementioned mandate.
To achieve this, FMDQ sought to partner with a world-class index provider, leading to the partnership with SPDJI which was identified as a credible brand and renowned for its index governance.
SPDJI is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®.
More assets are invested in products based on SPDJI than on any other provider in the world.
With over 1,000,000 indices and more than 120 years of experience constructing innovative and transparent solutions sovereign debt publicly issued by the Federal Government of Nigeria in the domestic market; which shall be the first, SPDJI has defined the way investors measure and trade the markets.
The partnership between FMDQ and S&P DJI marks the announcement of the adoption of the S&P Nigeria Sovereign Bond Index, a bond index which tracks the performance of local currency denominated index to be co-branded under the partnership.
Speaking at the ceremony, Mr Bola Onadele Koko, Managing Director/CEO, FMDQ OTC Securities Exchange, said “this is indeed a landmark achievement as the development of these co-branded fixed income indices aims to revolutionise the face of the Nigerian financial markets by providing investors with a consistent, credible and objective measure for the performance of their investments in the Nigerian financial markets.
“This will likewise serve as an acceptable benchmark for the fixed income market and provide transparent and credible information to the investing public and other persons with interest in the Nigerian financial market”.
According to Mr Alex Matturri, Chief Executive Officer, S&P Dow Jones Indices, “S&P Dow Jones Indices has been calculating Nigerian indices for a number of years and we have more recently expanded our offering to include dividend and fixed income indices. We’re delighted to officially sign the memorandum of understanding between S&P Dow Jones Indices and FMDQ and the adoption of the S&P Nigeria Sovereign Bond Index.
“As the Nigerian financial market develops and FMDQ establishes its position as the foremost debt capital securities exchange, we’re pleased to be able to bring greater index-based solutions, research and analysis to the Nigerian market.
“Following the adoption of the S&P Nigeria Sovereign Bond Index and our partnership with FMDQ, we’re looking forward to meeting the evolving needs of investors for benchmarks that will continue to define the way investors measure and trade the market”.
FMDQ remains resolute and unwavering in its commitment to develop the Nigerian debt capital market and promote an efficient, transparent, and well-regulated financial market, which will attract and retain investors, both domestic and foreign.
By Adedapo Adesanya
Trading activities ended in a stalemate on the floor of the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, with no single price gainer or a price loser at the close of business.
As a result of this development, the market capitalisation of the bourse remained intact at N1.03 trillion, as the NASD Unlisted Securities Index (NSI) also remained unchanged at 743.15 points.
The unlisted securities market closed flat in the midweek session amid low investor appetite for the market, as attention shifted to the fixed-income market, where the Central Bank of Nigeria (CBN) sold treasury bills at the primary market, with the stop rate over 14 per cent.
Data from the bourse showed that the volume of securities traded yesterday was abysmally low as it went down by 99.9 per cent to 8,299 units from the 20.1 million units transacted a day earlier.
Likewise, the value of shares traded during the session dropped to N1.2 million, 97.3 per cent lower than the N44.5 million posted in the preceding trading day.
These transactions were carried out yesterday in nine deals, 75 per cent lower than the 36 deals executed on Tuesday.
Geo-Fluids Plc remained the most traded stock by volume on a year-to-date basis with a turnover of 482.1 million units valued at N544.1 million, UBN Property Plc occupied second place with the sale of 365.8 units worth N309.5 million, while Industrial and General Insurance (IGI) Plc was in third place with the sale of 71.1 million units valued at N5.1 million.
Also, VFD Group Plc ended the session as the most traded stock by value on a year-to-date basis with a turnover of 7.3 million units worth N1.7 billion, Geo-Fluids Plc was in second place with a turnover of 482.1 million units worth N544.1 million, while UBN Property Plc was in third place with the sale of 365.8 million units valued at N309.5 million.
By Adedapo Adesanya
The Nigerian Naira appreciated against the US Dollar in the Peer-2-Peer (P2P) and the Investors and Exporters (I&E) windows of the foreign exchange market on Wednesday, March 30, but depreciated in the black market.
In the P2P segment, it gained N3 against its American counterpart to quote at N764/$1, in contrast to the N767/$1 it was traded on Tuesday as the demand for cryptos, which most traders in this category use the funds to buy, was relatively mild.
In the I&E window or the spot market, the Naira appreciated against the greenback yesterday by 51 Kobo or 0.11 per cent to settle at N461.24/$1 compared with the previous day’s N461.75/$1, according to data obtained from FMDQ Securities Exchange, with the forex turnover put at $74.31 million.
But in the parallel market, the domestic currency depreciated against the US Dollar in the midweek session by N4 to trade at N747/$1 versus Tuesday’s exchange rate of N743/$1.
Also, in the interbank window, the Naira lost N1.93 against the Pound Sterling to sell at N567.68/£1 versus Tuesday’s N565.52/£1, and against the Euro, it slid by N2.25 to at N499.21/€1 compared with the preceding day’s N496.66/€1.
Meanwhile, the digital currency market swayed to the bulls yesterday as most of the tokens tracked by Business Post ended in the green territory amid better-than-expected consumer confidence figures from the United States.
Data from the US Conference Board showed that its monthly survey rose to a reading of 104.2 basis points, better than the 101 mark expected, lifting Bitcoin (BTC) by 4.2 per cent to $28,519.76, as Ethereum (ETH) rose by 0.5 per cent to $1,788.52.
Solana (SOL) grew by 2.1 per cent to $21.08, Dogecoin (DOGE) gained 1.4 per cent to sell at $0.0751, Litecoin (LTC) increased by 0.6 per cent to $90.14, while Cardano (ADA) chalked up 0.5 per cent to quote at $0.3797.
However, Ripple (XRP) dropped 0.4 per cent to trade at $0.5336, Binance Coin (BNB) lost 0.2 per cent to settle at $313.02, and Binance USD (BUSD) and the US Dollar Tether (USDT) traded flat at $1.00 apiece.
By Adedapo Adesanya
Oil edged lower on Wednesday as investors took profits from two straight days of gains amid supply tightness, causing Brent crude to lose 37 cents or 0.5 per cent to trade at $78.28 a barrel, and the US West Texas Intermediate crude to shed 23 cents or 0.3 per cent to sell at $72.97 per barrel.
On the supply side, worries of tightness after an unexpected draw in US oil stockpiles and a halt to some Iraqi Kurdistan oil exports were partially offset by a smaller-than-expected output cut in Russia.
About 450,000 barrels per day of crude export were halted on Saturday from Iraq’s semi-autonomous northern Kurdistan region following an arbitration decision.
The shutdown followed an International Chamber of Commerce court ruling in favour of Iran in a case against Turkey that claimed that the latter should not have allowed for the flow of oil from Kurdistan to Ceyhan without the express approval of the Iraqi government.
Initially, Turkey said it would abide by the court’s decision, but this week, the Turkish Ministry of Energy and Natural Resources said in a statement that the court had in fact ruled that Iraq should compensate Turkey for violating an oil export deal the two countries had.
Also, it was reported that Russian oil production fell by around 300,000 barrels per day in the first three weeks of March, less than the targeted cuts of 500,000 barrels per day.
US crude oil stockpiles fell unexpectedly last week, the Energy Information Administration (EIA) said, as refineries ramped up operations after maintenance season and US imports fell to a two-year low.
The EIA reported a crude oil inventory draw of 7.5 million barrels for the week to March 21 compared with a relatively modest inventory build of 1.1 million barrels for the previous week.
At 473.7 million barrels, the EIA said, crude oil inventories are 6 per cent above the five-year average for this time of the year.
In fuels, meanwhile, the authority estimated a mixed inventory picture after last week’s major draws in both gasoline and middle distillates pushed oil prices higher.
Analysts also said that concerns over banking issues have subsided for now in temporarily relieving expectations for a recession.
Pressure came as the US Dollar edged higher against most major peers, pausing its recent declines. A stronger greenback hurts oil demand as crude becomes more expensive for buyers who hold foreign currencies.
