Equity market of Nigerian Exchange (NGX) has been ranked as the best investment asset class to hedge against inflation from August 2020 to August 2021.

The Financial Derivatives Company (FDC) disclosed this in inflation versus investment return data released over the weekend for August 2021.

Among the four asset classes tracked by FDC, Nigerian equity emerged the best hedge against inflation on a year on year (y-o-y) basis.

Read also: Lafarge presents 2020 sustainability report at NGX

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The data showed that NGX topped the list as it records y-o-y return of 54.85 percent against inflation rate of 17.38 percent. It added that Nigerian equity investors’ return beats inflation by 37.47 percent. The data indicated that US equities performance stood at 29.2 percent; real estate 15.08 percent and Treasury Bills rates offered 6.8 percent.

The Nigerian equity market was in 2020 named the best-performing stock market with over 50 percent gain according to a report by Bloomberg.

With earnings season now upon us, investors have begun to enjoy returns beyond capital gains, by way of dividend payments which some companies have already announced. Capital market players also continue to look forward to The Exchange’s activities with regards to galvanising participation through its innovative products and services, strong investments in technology and information dissemination.

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Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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