Despite the unprecedented N20.1 trillion gain in market capitalisation since the beginning of the year, six stocks lost an average of 40 per cent of their value year-to-date (YTD).
The six companies – VFG Group, Sunu Assurance, Conoil. MRS Oil, Julius Berger and Morison Industries – with a combined market capitalisation of N531.59 billion underperformed the index, emerging as the top six worst-performing stocks on Nigerian Exchange Limited (NGX) this year.
The equities market has been on an impressive run during the year. As of Friday, July 18, the market capitalisation had surged from N62.7 trillion at the close of last year to N83.2 trillion.
Similarly, the all-share index advanced by 21.8 per cent – growing from 102,926.4 basis points in January to 131,585.66 points. The rally, powered by strong earnings, improved investor confidence and increased foreign inflows, has seen many stocks post YTD gains of nearly 400 per cent.
However, the six listed firms have underperformed not only the index but also most of their industry peers, with their share prices plummeting since January 2025
VFD Group leads the pack with 68.5 per cent YTD decline in stock price. The company began the year at a share price of N44.40 kobo but closed at N14 as of July 18, 2025. Its market capitalisation currently stands at N106 billion. The steep drop was a result of markdown for 5-for-1 bonus issue, as well as weaker-than-expected Q1 earnings.
Contrary to its 2024 performance, SUNU Assurances Nigeria Plc also witnessed a sharp decline, losing 53.5 per cent of its value. The insurance firm opened the year at N10.75 kobo but closed at N5 on July 18, with a market capitalisation of M29.1 billion.
The stock witnessed a historic rally in the first half of 2024, gaining 20.03 per cent in a single week and emerging as one of the top gainers in 2024.
However, the gains proved unsustainable, with investors pulling back due to structural challenges in the insurance sector and a lack of consistent earnings.
Another major laggard is Conoil Plc. The oil marketing firm started the year with a share price of N387.20, but this has since fallen by 39.4 per cent to N234.50. Its market capitalisation is currently estimated at N163 billion.
Despite a gain of 8.34 per cent in Q1, 2024 and a cumulative increase of 25.15 per cent by mid-year 2024, Conoil has struggled in recent months, perhaps due to volatility in the downstream petroleum sector and concerns over the national energy policy direction.
MRS Oil Nigeria Plc has also seen its stock decline sharply. The company’s share price dropped from N217.80 at the start of 2025 to N149.50 in July, representing a 31.4 per cent YTD loss.
With a market value of N51.3 billion, analysts cite macroeconomic headwinds, rising input costs and the company’s announcement of a proposed delisting as factors that dampened investor sentiment.
Also, Julius Berger Nigeria Plc, a major player in the construction and infrastructure space, has recorded disappointing returns. The stock dropped by 27.9 per cent YTD, falling from N155.25 in January to N112.
This is in stark contrast to its performance in the first half of 2024, when the company posted an exceptional gain of 127.91 per cent, rising from N43 to N98. Then, its market capitalisation jumped by N88 billion to N156.8 billion.
The reversal in 2025 performance, according to analysts, may be linked to profit-taking, uncertainty around government contract releases and absence of new project disclosures.
The last on the list is Morison Industries Plc with its stock declining by 19.7 per cent from N4.01 to N3.22, bringing its market capitalisation to N3.19 billion. While the percentage drop is less severe compared to others on the list, analysts note that the low liquidity of the stock and the company’s weak fundamentals have kept investor interest muted.
These stocks had shown promising momentum in the first half of 2024. Julius Berger stood out with its triple-digit percentage rise, and even SUNU Assurances and Conoil had moments of significant appreciation. This reversal in fortunes has led some analysts to describe the current underperformance as a case of overvaluation correction, aggravated by broader sector-specific challenges.
An independent investor, Amaechi Egbo, said that the underperformance of the stocks is largely attributable to a combination of profit-taking, changes in sector outlook, weak corporate disclosures, and in some cases, strategic moves.
Egbo explained that the market’s focus has shifted towards sectors with stronger forward-looking prospects, particularly banking and technology.
