Stock Market Outperforms Inflation: 99 Listed Stocks Beat 20.13% YtD
Inflation rates have been volatile, but the stock market has demonstrated robustness. By August 2025, 99 listed stocks provided year-to-date (YtD) returns surpassing the 20.13% inflation rate. The All Share Index (ASI) has also performed admirably, with gains of 37.65% in 2024 and 36.1% by August 2025, both exceeding their respective inflation rates.
Inflation's easing trend is benefiting listed companies and investors. In Nigeria, the stock market has consistently outperformed inflation. In 2024, only 65 listed companies surpassed the inflation rate of 34.80%, but this number has since increased.
The banking sector is poised to gain from easing inflation. Improved loan servicing and reduced impairment charges are anticipated. Meanwhile, the Consumer Goods Index has risen to 91.3%, outpacing inflation. As inflation eases steadily, the gap between nominal and real returns widens, further benefiting investors.
With 99 listed stocks offering YtD returns above the August 2025 inflation rate, and the ASI performing strongly, investors can anticipate positive real returns. Easing inflation supports consumer spending, boosting revenues and profitability across listed companies. The banking sector, in particular, stands to gain from improved loan servicing and reduced impairment charges.
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