Seven stocks have defied the strong rally on the Nigerian Exchange (NGX), losing an average of 41.8 per cent of their market value year-to-date (YTD), despite a N63.17 trillion increase in equities capitalisation.

The seven 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 sharp divergence underscores the uneven nature of the 2026 market rally, as investors have continued to distinguish between companies based on earnings, balance-sheet strength, capital requirements, liquidity and prospects for future returns.

NGX market capitalisation, which stood at N99.937 trillion as of Friday, January 2, 2026, rose to N163.104 trillion on Wednesday, September 30, representing an increase of N63.167 trillion.

Similarly, the all-share index closed September 30 at 251,211.67 points, representing a 61.43 per cent year-to-date increase.

Data from the exchange showed that Guinea Insurance recorded the highest decline among the seven stocks, falling from N1.30 per share at the beginning of the year to N0.70 on September 30, representing a 46.15 per cent decline.

Sunu Assurances dropped 44 per cent, from N5.50 to N3.08, while Sovereign Trust Insurance declined 42.26 per cent, from N3.81 to N2.20.

Transcorp Power lost 42.02 per cent, moving from N307 to N178, while Ellah Lakes fell 39.86 per cent, from N13.80 to N8.30.

International Breweries declined 32.98 per cent, from N14.25 to N9.55, while Cutix recorded the smallest decline among the seven, falling 26.05 per cent, from N3.11 to N2.30.

For Guinea Insurance, the negative sentiment has persisted despite the company’s recapitalisation exercise. The insurer’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.

Investors have therefore continued to focus on the company’s ability to convert additional capital into stronger underwriting performance and sustainable profitability.

Sunu Assurances has also been affected by concerns about earnings quality. Although its first-half insurance revenue increased by 18.37 per cent to N11.80 billion, profit before tax plunged 85.45 per cent to N234.15 million, while profit after tax fell 94.87 per cent to N60.11 million.

Higher insurance service expenses and claims were among the pressures on profitability.

For Transcorp Power, 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.

Negative sentiment around the power stock has therefore centred on weaker revenue and profit, transmission constraints and the company’s ability to fully monetise its generation capacity.

Ellah Lakes’ decline has occurred as the company remains in a scale-up phase. Its first-half 2026 operating loss stood at N782.63 million, with the company attributing the result to the cost base required to support farm operations, processing, personnel, logistics, security and other activities associated with its expansion.

International Breweries presents another case where improved operating performance has not translated into stronger share-price performance.

Its first-half revenue was almost flat at N342.07 billion, although profit before tax rose 21.55 per cent to N74.79 billion. Profit after tax, however, fell 7.21 per cent to N38.31 billion.

Analysts have attributed the improvement in operating performance largely to margin recovery and lower foreign-exchange-related pressures, while pointing to weak revenue growth, elevated operating expenses and higher taxation as continuing constraints on the bottom line.

Cutix recorded the smallest decline among the seven, but its performance has also reflected deterioration in earnings.

The company swung from a N1.62 billion pre-tax profit in 2025 to a N47.9 million pre-tax loss in the year ended April 30, 2026. Revenue fell 6.35 per cent to N14.77 billion, while finance costs surged 170.68 per cent to N1.04 billion.

The negative sentiment of Cutix has therefore been driven principally by the sharp rise in borrowing costs, weaker revenue and higher operating expenses.

Its borrowings rose to N2.77 billion, while finance costs exceeded operating profit, putting pressure on earnings and the balance sheet.

The performance of the seven stocks shows that the more than 60 per cent rise in the NGX index has not translated into gains across the market.

While the index has benefited from strong performances in selected sectors and large-cap stocks, company-specific earnings and balance-sheet developments have produced markedly different outcomes for individual equities.

The divergence also means that 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.