In the financial landscape, the FMDQ Spot and Derivatives markets reported a total turnover of $557.8 million for the week ending December 8, signifying a 6.63% decrease compared to the previous week’s $597.4 million. According to FMDQ Securities Exchange, this week-on-week decrease in total turnover is attributed to declines in both spot and derivatives turnover, with a 4.6% ($26.81 million) reduction in spot turnover and a substantial 67.7% ($12.79 million) decrease in derivatives turnover.
The FX derivatives turnover saw a significant decline, primarily driven by a 67.6% ($12.7 million) decrease in FX Forwards turnover. Notably, there were no trades executed in both exchange-traded FX Futures and Cleared Naira-settled Non-deliverable Forwards markets during this period.
Breaking down the numbers, the FX Spot market recorded a total transaction value of $551.7 million, marking a 4.6% ($26.81 million) decrease from the previous week’s $578.55 million.
As of the week ending December 8, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate stood at $/₦867.76, reflecting a 2.19% ($/₦19.04) depreciation of the naira against the dollar compared to the week ending December 1.
Shifting focus to the equities segment, heavy transactions in the shares of key financial stocks, including Universal Insurance and United Bank for Africa (UBA), contributed to a robust turnover. Investors traded a total of 2.4 billion shares worth N45 billion in 34,704 deals, surpassing the previous week’s volume of 2.5 billion units valued at N38.6 billion.
The financial services industry dominated the equity turnover volume, accounting for 71.2% with 1.7 billion shares valued at N22.8 billion. The conglomerates and consumer goods industries followed, with 201.5 million shares worth N2.4 billion and 127.5 million shares worth N3.7 billion, respectively.
The top three equities—Universal Insurance Plc, United Bank for Africa Plc, and Guaranty Trust Holdings Company Plc—accounted for 22.4% of the total equity turnover, with 543.3 million shares worth N10.6 billion.
Despite fluctuations in various indices, the all-share index and market capitalization of the Nigerian Exchange Limited (NGX) appreciated by 0.2%, closing the week at 71,541.74 and N39.149 trillion, respectively. The Month-to-Date and Year-to-Date returns stood at +0.2% and +39.6%.
Analysts at Codros Capital expect a mixed market in the coming week, cautioning investors to focus on fundamentally justified stocks amid a challenging macro environment. Investdata Consulting Limited noted a potential slowdown in momentum due to stress testing on the capital adequacy ratio of Nigerian banks with international operations, urging caution as the market exhibits signs of correction.
