Kelechukwu Mgboji 
In a pivotal shift within the financial landscape, the Nigerian equities market is witnessing the emergence of a new cadre of investors whose appetite for risk surpasses that of traditional market participants.
This evolving investor profile is not only transforming trading volumes but also catalysing strategic changes within companies long considered dormant, according to Mr. Olatunde Amolegbe, the Managing Director and Chief Executive Officer, Arthur Stevens Asset Management.
“We are witnessing another set of investors entering the market,” Amolegbe remarked. “These investors exhibit a higher tolerance for risk compared to the conventional participants we’re accustomed to.
They are not merely content with trading stocks; they are positioning themselves to influence corporate governance from within, unearthing latent value previously overlooked,” he added.
Amolegbe pointed to the remarkable activity surrounding shares of Tantaliser, a company that had languished with minimal trading activity for years.
The stock has witnessed tremendous trading activities since the beginning of the year. Last Friday, investors mopped up 958,693 units at N2.14 per share in 44 deals valued N2.05million.
“Some of these stocks hadn’t traded 100,000 shares in the last five years. Suddenly, we’re seeing volumes in the millions.
This is indicative of a transformative influx of investors whose engagement is vital for market liquidity,” says Arthur Stevens CEO during Market Review of 2024 and Outlook for 2025 at a recent forum of Capital Market Correspondents Association (CAMCAN) in Lagos. c involvement of these investors is expected to invigorate companies historically viewed as underperformers, offering long-term shareholders long-awaited opportunities to exit stagnant positions.
“After years of negligible returns, early investors in firms like Tantaliser can now capitalise on renewed market interest,” Amolegbe added. “As this trend continues, we anticipate a broader range of stocks achieving heightened liquidity,” he added.
New Telegraph reports that low cap stocks of Chellarams Plc, Vitafoam Plc, Beta Glass Plc, and NNFM topped monthly cumulative gains in January, 2025.
Chellarams Plc soared 60.4 per cent in one month to close at N6.53 per share on January 30, 2025 up from N3.70 on January 2. Vitafoam Plc followed with +31.5 per cent increase in price from N23.95 at the beginning of the year to N311.95 on January 30. Beta Glass Plc and NNFM appreciated by +21 per cent apiece to emerge as third best performing stocks at the Nigerian Exchange (NGX), which has added N1.06 trillion in market value in January, driven by new listings from FCMB Group Plc and LASACO Assurance Plc.
The All-Share Index (ASI) closed at 104,496.12 points, re – cording a 1.53 per cent yearto-date (YTD) gain, while overall market capitalisation rose 1.67 per cent to N64.71 trillion. Addressing the impact of bank recapitalization on share prices, Amolegbe underscored the favorable conditions created by the current high-interest-rate environment.
“Recapitalisation translates to increased cash reserves for banks, which, in an era of elevated interest rates, can be deployed more profitably,” he explained. “Had this occurred in a low-interest-rate scenario, the benefits would be muted.
But now, it directly correlates with stronger financial performance,” he added. Amolegbe highlighted Zenith Bank’s impressive trajectory:
“Before recapitalisation, Zenith traded at around 34 or 33. Post-recapitalisation, it has surged to 47, reflecting investor confidence in the bank’s strengthened capital base and the potential for enhanced earnings and dividends.”
“This evolving investor landscape, coupled with strategic recapitalisation efforts, signals a robust future for the market, characterised by greater liquidity, improved corporate performance, and elevated investor confidence.”
