The value of stocks have soared as inflation rate has risen above the high point of the Central Bank of Nigeria/Monetary Policy Committee ((CBN/MPC) range of between 6 per cent and 9 per cent year-on-year for four months.
According to stockbrokers, this development is driving the stock market and influencing investors to divert their resources to the capital market.
The National Bureau of Statistics (NBS) Consumer Price Index and Inflation Report for September 2015, revealed that inflation leaped marginally to 9.4 per cent (year on year), from 9.3 per cent in August.
The NBC attributed the faster pace of stock activities in September to business in higher food and non-food divisions ranging from alcoholic beverage, tobacco and kola, clothing & footwear, to housing, water, electricity, gas and other fuels divisions, which it said contributed to the headline index.
The food sub-index as a whole recorded a marginal increase by 10.2 per cent (year-on-year) in September from 10.1 per cent in August.
Some stockbrokers opined that the increase in inflation rate is responsible for the sudden rise in stocks value, which started last Thursday with N190 billion gains in the last three trading days.
Stocks had on Thursday appreciated by N11b, surged by N46bn on Friday and rose by N133bn on Tuesday, October 20.