FMDQ Securities Exchange has reported a robust performance in its secondary market turnover, with a total turnover of N59.3 trillion recorded between June and August. This figure surpasses the N53 trillion achieved during the same period in 2022.
In August 2023, the secondary market turnover on the FMDQ Exchange reached ₦17.68 trillion, up from N15.53 trillion in August 2022. Similarly, July 2023 saw a turnover of N19.92 trillion, compared to N19.76 trillion in July 2022. In June, the platform recorded a total turnover of N21.7 trillion, an increase from ₦18.2 trillion in June 2022.
Furthermore, the issuance of Commercial Papers (CPs) quoted on FMDQ Securities Exchange reached N412 billion within the three-month period, surpassing the N277 billion achieved during the same period in 2022. This surge in short-term corporate debt issuance can be attributed to Nigerian firms taking advantage of the low cost of finance and short maturity periods to bolster their working capital, particularly for quick investment needs. Experts have noted that some companies prefer commercial papers due to their ability to be cleared from their balance sheets within a year.
Overall, the FMDQ Securities Exchange’s impressive performance in secondary market turnover and CP issuance indicates a vibrant financial market and increased corporate activity, driven by favorable financing conditions and the need for liquidity management among businesses.
