NGX Faces Pressure from Key Lagging Stocks: Insurance & Oil & Gas Sector Struggles in 2025

Nigeria’s stock market has seen a modest 3.20 percent rise in 2025, but this performance is overshadowed by the underwhelming results of several key stocks, particularly in the insurance and oil & gas sectors. These sectors have been significant laggards on the Nigerian Stock Exchange (NGX) so far this year. As of March 13, a list of 10 major decliners has emerged, with notable companies like Sunu Assurances, Eunisell Interlinked, and Learn Africa leading the way. Analysts suggest that the lack of major catalysts could result in mixed trading and cautious sentiment in the near future.

Sunu Assurances has faced a sharp decline of 54.42 percent year-to-date, with its stock price falling to N4.90 from a 52-week high of N11.65. Despite the drop, the company posted a significant increase in its 2024 revenue and profit compared to the previous year. However, its performance has not been enough to prevent the stock from being one of the top laggards on the exchange. The firm, which specializes in insurance, health management, and asset management, has 5.81 billion shares outstanding.

Eunisell Interlinked also recorded a notable decline of 44.21 percent, with its stock price dropping from a 52-week high of N19.27 to N10.75. The company, which deals with electrical equipment, power generation installations, and EPC services, showed impressive growth in its 2024 financial results. Revenue surged by 961 percent, and the company posted a profit of N267.7 million. Despite the strong financial performance, its stock has continued to struggle, reflecting broader market pressures.

Learn Africa, another major laggard, saw its stock price drop by 25.56 percent, nearing its 52-week low. The publishing and printing company has faced declining revenue and profit, as its 2024 financial statement showed a decrease in both metrics compared to 2023. Other stocks like Veritas Kapital, Oando, Julius Berger, and MRS also made the list of major decliners, highlighting ongoing struggles in the Nigerian stock market. These declines reflect the continued volatility and cautious sentiment among investors on the NGX in 2025.

SOURCE: BUSINESS DAY