Suspicious price movements raise the alarm at stock market
The Nigerian Exchange (NGX) has launched an investigation into certain share price movements at the stock market. The development followed some significant movements in prices of some companies which raised
The Nigerian Exchange (NGX) has launched an investigation into certain share price movements at the stock market.
The development followed some significant movements in prices of some companies which raised suspicions of undue influence.
The NGX Regulation Limited (NGX RegCo), the independent regulatory arm of Nigerian Exchange Group (NGX Group), yesterday alerted that it had observed “significant price movements in the shares of some companies on the Exchange in recent trading sessions”.
NGX RegCo also suspended trading in the shares of Zichis Agro-Allied Industries Plc (Zichis) immediately, citing extant rules that mandate the Exchange to protect the investing public.
Head, Issuer Regulation Department, NGX Regulation Limited (NGX RegCo), Godstime Iwnekhai said the decision on suspension was taken in accordance with regulatory rules that allow the Exchange to place the trading of any security on suspension if the Exchange “is of the view that such suspension will be in the interest of the investing public and in accordance with the SEC Rules”.
“The suspension of trading in Zichis shares shall be lifted upon the conclusion of an investigation into the trading activities on the company’s shares,” Iwnekhai said.
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Market analysts said the suspension was triggered by suspicion that the existing shareholders of Zichis might be “pumping” the share price of the newly quoted company.
Zichis, a relatively small agricultural company, was listed by way of introduction, which implies that initial shares for trading would be largely supplied by existing shareholders and some early buyers. A total of 600 million shares were listed at N1.81 per share.
The NGX was said to have been concerned with the irregular share price movement and the quantum of shares available for trading for a newly listed company.
Zichis recorded the highest gain at the NGX last week, rising by 60.74 per cent in five trading sessions to close the week at N17.36 per share. This represented capital gain of 859.12 per cent since January 20, 2026 when it was listed.
NGX RegCo also issued an advisory to the investing public in response to what it described as “notable price movements observed in the shares of certain listed companies over recent trading sessions”.
Chief Executive Officer, NGX Regulation Limited, Olufemi Shobanjo, said the advisory was issued as part of NGX RegCo’s standard market surveillance functions and also as a measured reminder for investors to prioritize informed and disciplined decision-making.
According to him, the Exchange would continue to monitor market activities closely in line with its mandate to ensure a fair, orderly, and transparent market.
“Our primary responsibility is to maintain a level-playing field where market participants can trade with confidence, backed by timely and accurate information. This advisory is a routine communication, reinforcing that sound fundamentals, not speculation, remain the foundation for sustainable investment outcomes. We are fully committed to preserving the integrity and stability of our market,” Shobanjo said.
He urged all investors to base their decisions on publicly available information, including a thorough assessment of company fundamentals, financial performance, and risk profile.
He added that investors must also exercise due diligence, avoid speculative trading based on unverified information, and consult licensed intermediaries such as stockbrokers or investment advisers when needed.
“NGX RegCo reassures all stakeholders that Nigerian Exchange remains stable, well-regulated, and resilient. The Exchange continues to foster an environment where investors can participate with confidence, supported by robust oversight and transparent market operations,” NGX RegCo stated.
Zichis confirmed that it had also witnessed significant price movement and trading volume on its shares.
Company Secretary, Zichis Agro-Allied Industries Plc, Mr Solomon Itsede, said the company has no undisclosed material information or corporate development that has not been provided to the market.
“Accordingly, shareholders and potential investors are advised to exercise caution when dealing in the company’s shares pending further clarification,” Itsede stated.
He said the company remains committed to complying with its continuous disclosure obligations under the applicable listing rules, adding that the board will promptly notify the Exchange and the investing public of any material information that requires disclosure.
