Mid-Level Investors Drive Liquidity Surge in Nigerian Capital Market – Amolegbe

Olatunde Amolegbe, Managing Director and Chief Executive Officer of Arthur Stevens Asset Management Limited, has highlighted the crucial role of mid-level investors in enhancing liquidity within the Nigerian capital market. Speaking at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2024 Market Review and 2025 Projection event in Lagos, Amolegbe addressed the theme, “In-Depth Evaluation of the Capital Market in 2024 and Prognosis for 2025.”

Amolegbe explained that mid-level investors are showing increased risk tolerance, setting them apart from traditional participants. These investors are not only involved in trading but are also strategically investing in companies to drive internal changes and unlock untapped value.

“These emerging investors are actively seeking capital not only for trading purposes but also to gain a foothold in companies where they can influence operations and unlock value that others have missed,” Amolegbe shared. He pointed to the recent surge in activity surrounding stocks that had previously been dormant, exemplifying this shift. Notably, Tantalizers Plc saw a remarkable 336% increase in its share price in 2024, after several years of stagnation.

“Some of these stocks had seen minimal trading over the past five years, with fewer than 100,000 shares exchanged. But recently, we’ve seen millions of shares being traded, underscoring the emergence of this new investor group,” he noted.

Amolegbe emphasized that the presence of diverse investor groups is essential for ensuring the liquidity of any capital market. The growing participation of mid-level investors has injected much-needed vitality into the Nigerian capital market, reviving dormant stocks and fostering more active trading.

“These investors play a crucial role. Though some may view their actions as risky, they are key to generating liquidity in the market. Their involvement often sparks the changes necessary for companies that have stagnated for years to flourish,” he concluded.

As the Nigerian capital market evolves, the influx of mid-level investors promises to attract further diversity and enhance market dynamics, positioning it for sustained growth and greater liquidity.

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