THE PERCEIVED IMPACT OF INFLATION ON THE NIGERIAN CAPITAL MARKET A CASE STUDY OF THE NIGERIAN STOCK EXCHANGE, ONITSHA, ANAMBRA STATE.

THE PERCEIVED IMPACT OF INFLATION ON THE NIGERIAN CAPITAL MARKET A CASE STUDY OF THE NIGERIAN STOCK EXCHANGE, ONITSHA, ANAMBRA STATE.

ABSTRACT

The research work was undertaken to asses the impact of inflation on the Nigerian capital markets. The work was intended to achieve the following objectives; to evaluate the way inflation affects the shares of quoted companies in Nigerian Stock Exchange and to examine the impact of inflation on the price of securities in the Nigerian capital markets. Relevant data were data collected from both the primary and secondary sources. Questionnaires were the main primary data collection instrument employed while data from various relevant publications constituted the sources of secondary data. Upon the analysis of data, the findings were draw; that inflation reduces the purchasing power of any currency, which directly affects the activities of Nigerian Stock Exchange; that inflation really reduces the amount of patronage of the shares of quoted companies. On the basis of the findings, it was recommended that management of Nigerian Stock Exchange should thoroughly stand up to the challenge of checking inflationary trend in the exchange while the government should introduce the price control board and monitor other sectors of the economy whose activities are likely to spring up inflation.