FDC: Nigerian equities emerged best ‘investment asset class’ to hedge against inflation

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

This is contained in the FDC’s August 2021 inflation vs investment return data.

In December 2020, the Nigerian Stock Exchange (NSE) was named the best-performing stock market among the 93 equity indexes tracked by Bloomberg across the world.

The NSE had recorded its best annual return in 2020 — since 2013 — with a 45.7 percent gain.

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

The data showed that NGX topped the list with a return of 54.85 percent YoY against the inflation rate of 17.38 percent.

It also indicated that the Nigerian equity investors’ return beats inflation by 37.47 per cent.

It likewise showed that the US equities performance stood at 29.2 percent; real estate (15.08 percent), and treasury bills rates (6.8 percent).

For the week ended September 3, the NGX recorded a total turnover of 1.34 billion shares valued at N8.65 billion in 19,830 deals in contrast to a total of 1.03 billion shares valued at N8.18 billion that were traded in 18,102 deals the previous week.

The stock market ended the week on a bearish note as the all-share index (ASI), the benchmark in measuring the market’s performance, declined by 0.57 percent while investors lost about N117 billion.