The Nigerian Exchange Limited All-Share Index outperformed the average inflation in the country in a cycle of three years.
The annual inflation measured by the Consumer Price Index (CPI) released in September by the National Bureau of Statistics (NBS) was 20.52 per cent in August 2022.
While the NGX ASI had a year-to-date performance of 15.68 per cent within the year in review.
On a three-year trailing basis, the NGX ASI outperformed the CPI average in the same period, ensuring that investors with a longer term hold on their investments remain in a positive region.
Analysis of data of closing prices gathered from the NGX’s website showed that the index has a 3-year moving average of 22.97 per cent, compared to an inflation average of 15.72 per cent. The chart below gives a better visual representation of the numbers.
The NGX ASI moved out of the negative region in 2020 as the market outperformed many other global market indices in the Bloomberg Emerging Market Indices at the end of the year, despite the impact of the COVID-19 pandemic.
The year 2021 and the consequent 2022 had both seen a slower rise in the index.
2022 has been a slow year for global stocks due to volatility resulting from the hiking of interest rates by central banks in the United States and Europe amidst inflationary pressures.
