Nigerian Exchange Flags Unusual Share Price Swings, Urges Caution

Nigerian Exchange Flags Unusual Share Price Swings, Urges Caution

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The Nigerian Exchange Ltd. has raised concerns over sharp and unusual price movements in shares of some listed companies in recent trading sessions.

In an investor alert issued on Monday, the Exchange said it observed significant volatility that may not reflect underlying company fundamentals.

It advised investors to rely strictly on publicly available information when making investment decisions.

“Investors are encouraged to base their decisions on careful analysis of companies’ fundamentals, risk profile and financial performance,” the notice stated.

The NGX cautioned against trading driven by rumours, social media speculation or unverified market information.

It warned that speculative activity could expose investors to avoidable losses and undermine confidence in the market.

 The Exchange assured stakeholders it would continue to monitor trading activities closely to detect infractions and ensure compliance with its rules.

 “We remain vigilant in our surveillance to safeguard market integrity and protect investors,” it said.

The NGX also encouraged investors to consult licensed stockbrokers and registered investment advisers before executing major transactions.

 Reaffirming its regulatory mandate, the Exchange said it remained committed to maintaining a fair, orderly and transparent market for all participants. (NAN)

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