Nigeria’s equities market regulator, Nigerian Exchange Limited, has issued a formal caution following what it described as abnormal price swings recorded in the shares of certain listed companies in recent trading sessions.
In an investor advisory released on Monday, the Exchange disclosed that it had detected sharp fluctuations in select stocks that appear disconnected from the companies’ underlying financial fundamentals.
According to the NGX, the volatility observed in these equities does not align with available corporate disclosures or performance metrics, prompting the Exchange to remind market participants to adopt disciplined and evidence-based investment strategies.
The Exchange emphasized that investors should rely strictly on verified and publicly disclosed corporate information when making portfolio decisions. It reiterated that stock selection must be grounded in detailed analysis of financial statements, business performance indicators, governance standards, and risk exposure levels.
“Investors are strongly advised to conduct thorough due diligence and evaluate companies based on fundamentals, risk appetite, and long-term financial performance,” the advisory noted.
The NGX specifically warned against market activity driven by rumours, social media commentary, speculative chatter, or unverified sources of information. It cautioned that emotionally driven trading patterns could expose investors to significant capital erosion and undermine overall market confidence.
Market operators have increasingly expressed concerns about retail investors reacting to unsubstantiated online narratives, particularly in a digital environment where financial misinformation spreads rapidly.
The Exchange further stated that speculative trading behaviour, if left unchecked, could distort price discovery mechanisms and threaten market integrity.
As part of its regulatory oversight responsibilities, the NGX assured stakeholders that it remains proactive in monitoring trading patterns across all listed securities. It stated that surveillance systems are actively deployed to identify infractions, detect possible manipulative conduct, and enforce compliance with listing and trading rules.
“We remain vigilant in our surveillance framework to preserve market transparency, ensure orderly trading, and protect investors from systemic risks,” the Exchange affirmed.
Additionally, the NGX encouraged investors to seek professional guidance from licensed dealing members, registered stockbrokers, and certified investment advisers before executing high-value or strategic transactions.
Reaffirming its commitment to regulatory excellence, the Exchange maintained that its overarching mandate is to sustain a fair, orderly, efficient, and transparent capital market environment for all participants.
The latest advisory underscores growing regulatory sensitivity to volatility in Nigeria’s equity market amid heightened retail participation and dynamic capital flows.
