Global Economy

In the US, policymakers left the short-term interest rates unchanged after the scheduled Federal Reserve policy meeting in January 2024.

In the euro area, the annual consumer price inflation rate slowed down to 2.8% in January 2024 from 2.9% in December 2023. The core rate, which excludes volatile food, energy, alcohol, and tobacco prices, also slowed to 3.3%.

In Japan, due to rise in cost burdens there was moderate deterioration in manufacturing conditions as seen in the continued falls in outputs and new orders.

In China, the official manufacturing purchasing managers’ index (PMI) remain in the contraction region at 49.2% in January 2024 from 49.0% in December 2023.

Domestic Economy

Nigeria's headline inflation rate increased to 28.92% in December from 28.20% in November 2023. The Food inflation rate in December 2023 was 33.93% (vs 23.75% in December 2022) on a year-on-year basis. In addition, Core inflation, printed at 23.06% (vs 18.21% in December 2022) in December 2023 on a year-on-year basis.

Food inflation, which has continued as a huge driver of the CPI was mostly caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other Tubers, Fish, Meat, Fruit, Milk, Cheese, and Egg in the reporting period.

Nigerian Equity Market

At the close of the last trading week of January 2024, the NGX All Share Index recorded a year-to-date performance of 39.7%. The NGX 30 Index recorded a year-to-date performance of 40.88%. Major stocks that contributed to the massive positive returns include Dangote Cement PLC (138.51%), Guinea Insurance (100.00%), Wema Bank Plc (93.75%), Bua Cement (90.72%), and so on.

The market capitalization of the NGX All Share Index points reach the 101,154pts as of the 31st of January 2024.

Nigerian Fixed Income Market

In January 2024, we observed that the decrease in financial system liquidity and the rising inflation expectations led to increased yields across the Nigerian Fixed Income Market.

The FGN bond market saw the average yield increase by 0.30% to settle at 14.49%. The Nigerian Treasury Bills market also saw an increase of 2.86% to settle at 9.15. Overall yield in the fixed income space rose by 1.61% to settle at 11.82%.