Resilience Fuels Growth in Nigerian Equities Market
The Nigerian equities market has shown 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.
During an appearance on Newscentral’s Business programme, Business Edge, Izuora highlighted that the market is predominantly driven by information, with corporate announcements and financial reports playing a significant role in 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,” stated Izuora.
She pointed out that the release of Q3 financial reports by companies has already started to shape investor behavior, particularly in anticipation of a full-year 2024 dividend.
“We’ve observed similar trends across various companies that have disclosed their financials, although the impact is sometimes short-lived,” she explained.
Izuora acknowledged that regulatory changes, such as the banking recapitalization last year, have significantly increased transaction volumes. Currently, the insurance sector’s recapitalization is also beginning to generate similar investor interest.
Izuora added that while these factors influence stock movements, speculation remains a crucial component 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 people took positions and are now facing losses. But I believe their losses will not be long-lasting,” she remarked.
She mentioned that with the increasing digitization of stock trading, access to the market has become more democratized. While having a stockbroker can be advantageous, it is not always necessary.
“There’s a lot of technology being leveraged to democratize 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 emphasized that retail investors must have a foundational understanding of the market before getting involved.
