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By Chinwendu Obienyi and Chukuwma Umeorah
The 3-year trailing performance of the All-Share Index (ASI) of the Nigerian Exchange Limited (NGX) has surpassed the average inflation during the same period.
The annual inflation measured by the Consumer Price Index (CPI) released by the National Bureau of Statistics (NBS) in the month of September was 20.52 per cent. Meanwhile, the NGX ASI, a market capitalisation weighted index of all companies listed on the NGX’s platform, had a year-to-date performance of 15.68 per cent during the same period.
On a 3-year trailing basis, the NGX ASI has 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 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. However, the year 2021 and 2022 have both seen a slower rise in the index.
