The Nigerian Exchange Limited (NGX) has suspended trading in the shares of Zichis Agro-Allied Industries Plc following an extraordinary 772% surge in the company’s stock price within one month of listing. The suspension, announced in a market bulletin on Monday, takes immediate effect and will remain in place pending the outcome of a regulatory investigation into recent trading activities.
Zichis Agro-Allied, which listed 600 million ordinary shares by introduction on the NGX Growth Board on January 20, 2026, at N1.81 per share, saw its price climb sharply to N17.36 by February 20. In just four weeks, the stock appreciated by 563%, significantly outperforming the broader market. The dramatic rise has raised concerns about market integrity and investor protection, prompting swift regulatory action.
Citing its mandate to ensure fair and orderly trading, the Exchange said the decision was executed under Rule 7.0 of the NGX Rulebook, which empowers it to halt trading in securities when necessary to protect investors and align with Securities and Exchange Commission regulations. By freezing transactions, the NGX aims to prevent potential market distortions while it reviews the circumstances behind the rapid price movement.
Market analysts say the move reflects growing regulatory vigilance as Nigeria’s capital market experiences heightened activity and increased retail investor participation. Between January 23 and February 20, Zichis traded 118 million shares in 976 deals valued at N721 million, averaging 5.64 million shares per session. The company’s market capitalization now stands at N10.4 billion, representing a small fraction of the total NGX equity market but drawing outsized attention due to its explosive rally.
For many retail investors who were drawn in by the stock’s remarkable performance, the suspension underscores both the opportunities and risks in a fast-moving equities market. As investigations continue, stakeholders will be watching closely to see whether the rally was driven by fundamentals or speculative activity. The NGX maintains that safeguarding investor confidence remains central to sustaining long-term growth in Nigeria’s expanding capital market.
source: nairametrics