business

ASHON Warns Investors Amid Bullish Nigerian Capital Market

Published

4 months ago

February 26, 2026

Nigerian capital market warning: ASHON urges investors to exercise caution as speculative activity risks undermining market stability

The Association of Securities Dealing Houses of Nigeria (ASHON) has urged investors to exercise caution amid a sustained bullish run in the Nigerian capital market, warning that unchecked speculation could threaten market stability, in a statement issued on 26 February 2026.

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Sehinde Adenagbe, ASHON’s chairman, highlighted that while enthusiasm among investors has grown due to recent gains on the Nigerian Exchange Limited (NGX), some securities are experiencing sharp price rises unsupported by fundamentals such as earnings growth and corporate governance.

“The decisive action by NGX in suspending Zichis Agro-Allied Limited over irregular trading underscores the importance of maintaining market integrity,” Adenagbe stated, referencing recent regulatory interventions as a reminder of the need for orderly market conduct.

ASHON attributed the rally to renewed investor confidence, improving macroeconomic sentiment, and broader participation across asset classes.

The association emphasised that market gains must be rooted in solid fundamentals, cautioning investors against speculative excesses reminiscent of the 2008–2009 global market crash.

The association also called on regulators, including the Nigerian Capital Market Regulator (RegCo), to strengthen surveillance and enforce compliance with trading rules.

Listed companies were urged to meet free float requirements and attract new listings to deepen liquidity and expand investment opportunities.

ASHON reaffirmed its commitment to professionalism, ethical standards, and investor protection.

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The association stressed that while optimism in the market is positive, it must be balanced with responsibility to ensure a stable and sustainable capital market that supports Nigeria’s economic growth.