NGX RegCo has advised investors to steer clear of speculative trading and instead base their decisions on strong market fundamentals.

NGX Regulation Limited (NGX RegCo) has issued a strong advisory to investors, cautioning against speculative trading and encouraging market participants to make decisions based on company fundamentals rather than rumours or unverified information.

In a statement released on Wednesday in Lagos, the independent regulatory subsidiary of the Nigerian Exchange Group addressed the recent price swings recorded in the shares of some listed companies during recent trading sessions.

The regulator explained that the advisory forms part of its routine market surveillance efforts aimed at maintaining a fair, orderly, and transparent marketplace.

Speaking in the statement, the Chief Executive Officer of NGX Regulation Limited, Olufemi Shobanjo, said the organisation’s core mandate is to uphold a level playing field where investors can trade confidently, supported by timely and accurate disclosures.

He noted that the communication serves as a reminder that sustainable investment outcomes are driven by sound fundamentals rather than short-term speculation, reaffirming the regulator’s commitment to protecting market integrity and stability.

NGX RegCo urged investors to adopt disciplined and informed investment strategies by relying on publicly available data, including a thorough review of company fundamentals, financial performance, and risk exposure.

The regulator also advised market participants to avoid acting on rumours or unverified tips, recommending that investors seek guidance from licensed intermediaries such as stockbrokers or investment advisers when necessary.

While acknowledging recent volatility in certain stocks, NGX RegCo reassured stakeholders that the broader market remains stable, resilient, and well-regulated. It emphasised that robust oversight and transparent operations continue to support investor confidence.

The advisory underscores the importance of focusing on long-term value creation rather than reacting to short-term price movements.

In recent weeks, share prices of several tier-one and tier-two Nigerian banks have experienced notable gains, driven largely by year-end positioning, attractive valuations, and dividend expectations.

NGX RegCo further explained that it employs advanced technology to monitor trading activities in real time. When a stock records price movements beyond established statistical thresholds such as a 10 or 20 per cent change without any corresponding corporate disclosure an alert is automatically triggered for review.