Market Snapshot - Q2, 2016

Market Capitalisation:

NSE Market Capitalisation opened trading for Q2 2016 at N15.95 trillion, gained N1.33 trillion
(increase of 8.4%) and closed trading on June 30, 2016 at N17.28 trillion (Equities 64.06%, Bonds
44.74% and Exchange Traded Products 0.03%). This also shows a slight increase of 1.5% from Q2 2015
position.
NSE Market Capitalization (N)
April 1, 2016
(N)
8,782,552,879,110.63
7,167,502,332,450.62
3,673,963,720.20
15,953,729,175,281.40

Securities
Equities
Bonds
ETF
Total

June 30, 2016 (Q2)
(N)
10,173,785,475,042.20
7,105,811,781,278.44
4,346,518,620.73
17,283,943,774,941.40

June 30, 2015 (Q2)
(N)
11,429,698,692,818.40
5,583,150,588,833.74
4,524,929,000.00
17,017,374,210,652.10

NASD OTC Market Capitalization (N)

Securities

437,170,000,000.00

395,980,000,000.00

561,640,000,000.00

Sources: NSE & NASD OTC Data Centre

The market capitalisation of admitted securities on NASD OTC Market at the end of Q2 2016 stood at
₦437.17 billion, an increase of 10.4% (N41.19 billion) from the value recorded at the start of Q2 2016.
This was an increase of 11. 95% (N47.32 billion) compared to end of Q1, 2016 and a decline of 22.16%
(N124.47) compared to Q2 2015.

NSE Markets

The total value of securities settled increased by 9.69%, from N149.39 billion in Q1 2016 to N163.86
billion in Q2, 2016. Also the volume of securities settled dropped from 34.94 billion units to 27.04
billion units, representing a 22.6% decrease from the previous quarter in 2016.

18.0

90.0

16.0

80.0

14.0

70.0

12.0

60.0

10.0

50.0

8.0

40.0

6.0

30.0

4.0

20.0

2.0

10.0

0.0

-

Jan

Feb

Mar

Transaction Value

Apr

May

Jun

Activities in the NSE market showed
that the month of June recorded the
highest transaction value of N78.21
billion, accounting for 47.7% of the
total market in Q2.

The upward turn in the market
could be attributed to the CBN
decision to adopt a flexible interbank exchange rate system in which
the exchange rate would be marketdriven.

Value (N'Bn)

Volume (Bn Units)

NSE Market

Transaction Volume

Equities accounted for 99.7% of the total value settled. Market concentration report indicated that
195 out of 248 listed securities were traded on the floor of the Nigerian Stock Exchange (NSE), and
that 20 of the traded securities contributed 88.9% of the total value of securities that were cleared
and settled in the quarter under review.
Transactions in debt securities (bonds) accounted for N292.7 million with a total volume of 0.26
million units.

1

NASD OTC Market

The total value of securities settled increased by 33.96%, from N1.01 billion in Q1 2016 to N1.35 billion
in Q2, 2016. Also the volume of securities settled recorded a significant increase from 144.33 million
units to 330.05 billion units, representing a 128.68% increase over the previous quarter.

40.0

40.0

35.0

35.0

30.0

30.0

25.0

25.0

20.0

20.0

15.0

15.0

10.0

10.0

5.0

5.0

0.0

NASD has commenced trading in
Debt securities following the
Securities
and
Exchange
Commission (SEC) directive on the
new settlement of OTC transactions

NASD admitted 2 new securities into
the market, namely: Famad

Nigeria Plc. and AG Mortgage
Bank Plc.

0.0

Jan

Feb

Mar

Apr

Transaction Value


Value (N'Bn)

Volume (Mn Units)

NASD OTC Market

May

Jun

Transaction Volume

Market concentration report indicated that 15 out of 28 admitted securities were traded on NASD
platform and that 2 of the traded securities contributed 80.68% of the total value of securities that
were cleared and settled in the quarter under review. Friesland Campina Wamco Nigeria Plc’s and
Niger Delta Exploration & Production Plc accounted for 45.65% and 35.02% respectively.

FMDQ OTC Market (January – May 2016)
Categories
Foreign Exchange
Foreign Exchange Derivatives
Treasury Bills
FGN Bonds
Other Bonds*
Eurobonds
Repurchase Agreements/Buy-Backs
Unsecured Placements/Takings
Money Market Derivatives

5,469,825
2,335,192
15,026,101
4,520,250
24,430
23,827
11,286,243
896,806
495

Total

39,583,168

Turnover

Sources: FMDQ Data Portal

The total turnover for the period January to May 2016 amounted to ₦39.58trn. Trading
activities in Treasury bills contributed the largest to overall turnover, accounting for 37.96%,
secured market transactions (Repos/Buy-backs) accounted for 28.51%, while FX market
transactions accounted for 19.72% and FGN Bonds, 11.42%.

The Central Bank of Nigeria (CBN) made history in the Nigerian FX market as it became the
pioneer seller of the Naira-settled OTC FX Futures contracts on FMDQ OTC Securities

2

Exchange (FMDQ) on Monday, June 27, 2016. This comes exactly one (1) week after two-way
quote trading commenced in the Nigerian FX market on the back of the recent release of the
revised CBN Guidelines for the Operation of the Nigerian Inter-Bank FX Market (the
Guidelines), essentially transitioning the market from a pegged FX rate regime to a floating
one.
OTC Debt Market
 Activities in the OTC Debt market increased by 34.85%, from N44.76 billion in Q1 2016 to
N60.5 billion in Q2 2016. Also, the volume of transaction settled increased by 57.33% from
40.96 million units in Q1 to 64.44 million units in Q2 2015.

70.0

70.0

60.0

60.0

50.0

50.0

40.0

40.0

30.0

30.0

20.0

20.0

10.0

10.0

0.0

Value (N'Bn)

Volume (Mn Units)

OTC Debt Market

0.0

Q1 2016

Transaction Value

Q2 2016

Transaction Volume

 3 out of 31 bonds traded in the OTC bond market contributed 72.6% of the total value
settled
 UBA Bond (16.45%, Dec 2021) recorded the highest traded value with 27.3% contribution

3