Nigerian equities emerged as the best asset class to hedge against inflation

Financial Derivatives Company (FDC) has ranked Nigerian stocks as the “best investment asset” category to hedge against inflation between August 2020 and August 2021.

This is stated in the FDC’s August 2021 inflation versus investment return data.

In December 2020, the Nigerian Stock Exchange (If) was named thebest performing stock marketare among the 93 stock indices tracked by Bloomberg around the world.

The NSE had achieved the best annual return in 2020 – since 2013 – with a profit of 45.7 percent.

Of the four asset classes tracked by FDC, the country’s stock market emerged as the best hedge against annualized (year-on-year) inflation.

The data showed that NGX topped the list with an annualized return of 54.85 percent against inflation of 17.38 percent.

It also indicated that the yield of Nigerian equity investors is 37.47 percent higher than inflation.

It also showed that US stock performance was 29.2 percent; real estate (15.08 percent) and Treasury bill rates (6.8 percent).

For the week ended September 3, the NGX posted total sales of 1.34 billion shares worth N8.65 billion in 19,830 deals, as opposed to a total of 1.03 billion shares worth N8.18 billion that the the week before in 18,102 deals were traded. .

The stock market ended the week on a bearish note as the all-share index (ASI), the benchmark for measuring market performance, fell 0.57 percent as investors lost about N117 billion.