In the global space,

The U.S. equities market scored a second negative week into the new year. Major banking stocks declined after their earnings reports this week, despite positive performance. Driving the market’s weak performance was the macroeconomic scene, which revealed lower than expected reading (-1.90%) for Retail Sales, in the Retail Sales report in December 2021, and Inflation in December 2021, which printed higher at 7.00%. These releases underwhelmed investors despite the strong performance of companies. Major market indexes, thus, closed in red at the end of the trading week.

On the treasury scene, the 10-year Treasury Note, the benchmark interest rate, was relatively flat this week, settling at 1.78% at the close of trades this week. This was largely due to the aggressive stance of central bank officials, and economic data which showed slower growth and higher inflation.

Earnings season picks up momentum in the following week, with blue-chip companies releasing financial results. This earnings period could shape up to be a test of the view of many investors that low-cap stocks are set to fare better than high-cap stocks.

On the domestic front,

It was a week of familiar performance, as the Nigerian equities market picked up from its positive mood last week, gaining 1.37% this week to close at 44,454.67pts. The market’s year-to-date return inched higher to 4.07%, from 2.66% the previous week. Across sectors, performance was largely in line with the previous week, with the Oil and Gas, Banking, and Industrial good sector closing the week in positive territory. On the flip side, the Consumer goods sector and Insurance sector remained in negative territory at the close of trades this week.

At the fixed income primary market, an auction for Treasury bills was conducted. Accordingly, the rate on the 364-day note increased to 5.50% from 4.90% at the previous auction. At the fixed income secondary market, selling activities dominated market activities as the average yield on treasury bills and bonds inched higher to 4.25% and 11.01% respectively.