By Chukwuma Umeorah
Emerging and mid-level investors are driving the increasing level of liquidity in the Nigerian capital market by unlocking hidden opportunities and revitalising dormant stocks, according to Olatunde Amolegbe, Managing Director and Chief Executive Officer of Arthur Stevens Asset Management Limited.
Speaking at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2024 Market Review and 2025 Projection event in Lagos, Amolegbe highlighted the significant role these investors play in boosting trading activity and market vibrancy.
Describing these set of investors as more risk-tolerant than traditional participants, Amolegbe noted that these investors are not just trading but actively seeking opportunities to secure stakes in companies where they can influence operations and unlock hidden value.
“These emerging investors are willing to seek capital not just for trading but also to secure a foothold in companies where they can influence operations and unlock value that others may have overlooked,” he said.
He cited the revival of previously dormant stocks as evidence of this trend, pointing to Tantalizers Plc, which saw its share price soar by 336 per cent in 2024 after years of inactivity. “Some of these stocks had not traded 100,000 shares in the past five years. Suddenly, in recent months, they are trading millions of shares. This demonstrates the emergence of a new subset of investors entering the market,” Amolegbe said.
He emphasized the importance of diverse investor participation for a truly liquid capital market, stating that mid-level investors are instrumental in revitalizing stagnant companies and bringing fresh momentum to the marketplace. “These investors are welcome. While some might say they are taking risks, I believe they are instrumental in creating liquidity in the marketplace. Often, they bring about the changes necessary for companies that have been stagnant for a long time to thrive,” he said.