The Association of Securities Dealing Houses of Nigeria (ASHON) has urged caution as the Nigerian capital market experiences a sustained bullish run, warning that unchecked speculation could threaten market stability.
The current rally on the Nigerian Exchange Limited (NGX) has generated excitement among investors, but analysts have raised concerns that some securities are experiencing sharp price gains without corresponding fundamentals such as earnings growth or robust corporate governance.
Market observers fear that overpricing in certain stocks could create vulnerabilities, making the market more sensitive to shocks and speculative behaviour.
