In th global space,
The U.S. equities market closed out its worst week since 2020, with big losses in technology and consumer discretionary names. The decline in the technology market index, the Nasdaq Composite, marks the worst start to a year since 2008 after losing 7.60%. Other market indexes also experienced similar performance, closing in the red at the end of the trading week.
On the treasury scene, the 10-year Treasury Note, the benchmark interest rate, surged as high as 1.90% during the week, with investors rattled about the central bank’s timeline for raising interest rates and cutting back on its bond purchase. However, at the close of trades, it retreated to 1.75% as investors eased off on the selling activity.
Volatility is expected to remain intense in the coming week, after the worst week for stocks since 2020. In the week ahead, the Federal Reserve’s meeting is set to top the event chart. Investors expect the central bank to continue to sound the alarm on its interest rate hike, with the first expected to come in March. Earnings season is expected to maintain momentum in the coming week, with more technology stocks announcing the financial performance.
On the domestic front,
The Nigerian equities market maintained its three-week winning streak, as it closed in a positive region at the close of trades, raking in 3.38%. Accordingly, the market’s year-to-date return improved to 7.59%, from 4.07% the previous week. Across sectors, performance was largely positive, with all sectors closing in the green, save for the Insurance sector which lost 0.27% this week.
During the week, the National Bureau of Statistics (NBS) released its monthly Inflation Report, which revealed a 15.63% increase in prices in December 2021, on a year-on-year comparison (15.40% in the previous month). The increase in headline inflation was driven by pressure both from the food (17.37% vs. 17.21% in November 2021) and core (13.87% vs. 13.85% in November 2021) components.
At the fixed income primary market, an auction for Treasury bonds was conducted. A total of NGN170.64bn was raised across JAN 2026 (11.50%) and JAN 2042 (13.00%). At the fixed income secondary market, activities were mixed as the average yield on treasury bonds dipped to 12.84% from 12.90% the previous week. on the other side, the average yield on Treasury bills increased to 4.33% from 4.25% the previous week. Yields move in the opposite direction to prices.