The Nigerian equities market has demonstrated remarkable resilience, maintaining five consecutive years of positive returns on the All-Share Index (ASI) despite economic fluctuations, according to Chinazom Izuora, Senior Investment Broker at Parthian Securities.
Speaking on Newscentral’s Business programme, Business Edge, on Wednesday, Izuora said that the market is primarily “information-driven,” with corporate announcements and financial reports significantly influencing stock movements.
“The Nigerian equities market has been resilient. I think that’s the best word to describe it because as of 2025, we’ve had five years of positive return on the ASI.”
Izuora noted that Q3 financial reports released by companies have already begun shaping investor behaviour, especially in anticipation of a full-year 2024 dividend.
“We’ve seen similar trends across different companies that have released their financials, although sometimes it’s short-lived,” she explained.
She acknowledged that regulatory changes, such as last year’s banking recapitalisation, significantly increased transaction volumes. Now, the insurance sector’s recapitalisation is beginning to drive similar investor interest.
Izuora added that while these factors drive stock movements, speculation remains a crucial element of the Nigerian equities market.
“Of course, we also see a lot of speculative activity. So that’s what’s been driving the Nigerian equities market.”
“An example could be Perscar. I mean, after that one-day surge, it hasn’t been the same. Some persons took position and they are crying. But of course, I want to believe their tears will not last for long,” she remarked.
She said that with the increasing digitization of stock trading, access to the market has become more democratised, so while having a stockbroker can be beneficial, it is not always necessary.
“There’s a lot of technology being leveraged to democratise access to the market and make it easier for retail investors to participate, so you don’t necessarily need a stockbroker to do it for you.”
However, she stressed that retail investors must possess foundational market knowledge before diving in.
