Equities Best ‘Investment Asset Class’ To Hedge Against Inflation – Financial Derivatives Company

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Nigerian equities has been ranked as the “best investment” asset class to hedge against inflation.

This statement was made by the Financial Derivatives Company(FDC) in the FDC’s August 2021 inflation vs investment return data on Sunday in Lagos. This assertion based on the findings from the four asset classes tracked by the FDC, the Nigerian equity emerged the best hedge against inflation on a year-on-year (y-o-y) basis.

The Nigerian Stock Exchange was named the best-performing stock market in December 2022.

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.