The Nigerian stock market has experienced a significant rally in 2026, with the NGX market capitalisation increasing by N63.167 trillion, from N99.937 trillion on January 2 to N163.104 trillion on September 30. However, seven stocks have defied this trend, losing an average of 41.8% of their market value year-to-date. These stocks are Guinea Insurance Plc, Sunu Assurances Nigeria Plc, Sovereign Trust Insurance Plc, Transcorp Power Plc, Ellah Lakes Plc, International Breweries Plc, and Cutix Plc.
The seven stocks have recorded significant declines in their share prices. Guinea Insurance recorded the highest decline, falling from N1.30 per share at the beginning of the year to N0.70 on September 30, representing a 46.15% decline. Sunu Assurances dropped 44%, from N5.50 to N3.08, while Sovereign Trust Insurance declined 42.26%, from N3.81 to N2.20. Transcorp Power lost 42.02%, moving from N307 to N178, while Ellah Lakes fell 39.86%, from N13.80 to N8.30.
International Breweries declined 32.98%, from N14.25 to N9.55, while Cutix recorded the smallest decline among the seven, falling 26.05%, from N3.11 to N2.30. The sharp divergence in the performance of these stocks underscores the uneven nature of the 2026 market rally. Investors have continued to distinguish between companies based on earnings, balance-sheet strength, capital requirements, liquidity, and prospects for future returns.
The negative sentiment surrounding these stocks has been driven by concerns about their earnings quality and financial performance. Guinea Insurance's first-half 2026 results showed a loss after tax of N389.12 million, compared with a loss of N114.72 million in the corresponding period of 2025. Sunu Assurances' profit before tax plunged 85.45% to N234.15 million, while profit after tax fell 94.87% to N60.11 million.
Transcorp Power's first-half revenue declined to N181.97 billion from N205.81 billion, while profit before tax fell to N54.99 billion from N58.73 billion. The company attributed the weaker performance partly to recurring vandalism of transmission infrastructure, which affected the evacuation of generated electricity. Ellah Lakes' decline has occurred as the company remains in a scale-up phase, with an operating loss of N782.63 million in the first half of 2026.
International Breweries' first-half revenue was almost flat at N342.07 billion, although profit before tax rose 21.55% to N74.79 billion. However, profit after tax fell 7.21% to N38.31 billion. Cutix recorded a pre-tax loss of N47.9 million in the year ended April 30, 2026, compared with a pre-tax profit of N1.62 billion in 2025. The company's revenue fell 6.35% to N14.77 billion, while finance costs surged 170.68% to N1.04 billion.
The performance of the seven stocks highlights the divergence in the Nigerian stock market, where the over 60% rise in the NGX index has not translated into gains across the market. The headline NGX return masks significant differences in investors' experience, with some companies recording substantial losses even as the broader market reached record levels during the year.
Key points
- Seven Nigerian stocks have lost an average of 41.8% of their market value year-to-date despite a 63.17 trillion increase in equities capitalisation on the Nigerian Exchange.
- The decline in these stocks has been driven by concerns about their earnings quality and financial performance.
- The divergence in the performance of these stocks underscores the uneven nature of the 2026 market rally.
