Recently, the equity market in Nigeria has been at the center of the storm. As the All Share Index fell 6.7% to settle at 44,396.73 points, the lowest since January, stock investors suffered their worst weekly and yearly loss in October.
The Central Bank of Nigeria increased the Monetary Policy Rate from 14 percent to 15. 5 percent at the most recent Monetary Policy Committee meeting in a desperate effort to control inflation.
Interestingly, since inflation has only had a beneficial effect on fixed asset yields like bonds and commercial papers, they have remained the best bet for most investors. This is due to the fact that interest rates are higher during an inflationary time, favoring fixed income.
Punch