The effect of inflation on stock market performance in Nigeria, 1980–2010 Udoka Chris O., Ph.D, Atamn, Mboto Helen Walter, M.Sc, Anyingang Roland A., M.Sc Department of Banking and Finance, Faculty of Management Sciences, University of Calabar, Calabar, Nigeria Online published on 8 October, 2013. Abstract The main thrust of this study was to investigate the relationship between inflation s and the performance of the Nigerian stock market. Two hypotheses were formulated to guide and direct the study. The hypotheses were stated as follows: There is no significant relationship between inflation and market capitalization, there is no significant relationship between inflation and the volume of shares traded on the Nigerian stock market. Relevant data were collected from the Central Bank of Nigeria statistical bulletin. Data collected were analyzed and tested using the ordinary least squares regression technique. Findings resulting from the test revealed that; there existed a direct relationship between all share index and market capitalization (MCAP). The study also showed that there existed a significant and direct relationship between all share index and the value of shares traded on the Nigerian stock market. Given that the stock market operates in a macroeconomic environment, it became necessary that the environment should be an enabling one (regulating inflation rate and other macroeconomic variables) in order to realize its full potentials. Top Keywords Stock price volatility, market capitalization, all share index, value of shares traded. Top |