Nigerian equities surpass South Korea to become top-performing market in dollar terms

Nigerian equities have emerged as the best-performing stock market globally in dollar terms this year, overtaking South Korea.

The development was driven by weakened investor sentiment towards artificial intelligence-linked stocks and drags the Asian market into bear territory.

According to data compiled by Bloomberg across 92 global stock exchanges, Nigeria’s benchmark stock index has returned 67% in dollar terms year-to-date, edging past South Korea’s Kospi index, which has gained 66%.

What the report is saying

South Korea’s equity market has come under pressure in recent weeks, with the Kospi index entering a technical bear market after falling 22% from its June 19 peak.

• The decline reflects growing investor concerns over the sustainability of demand for AI-related stocks, which had previously fueled one of the strongest rallies in global markets.
• The weakness has also been compounded by currency pressures, with the South Korean won losing 5% of its value against the U.S. dollar since the start of the year, making it the fourth-worst-performing currency in Asia.
• In contrast, Nigeria’s stock market has rallied strongly on the back of improving macroeconomic conditions, ongoing economic reforms, firmer oil prices, and improved foreign exchange liquidity.

The naira has appreciated by approximately 4% against the dollar since January, further boosting returns for foreign investors.

More insights

Financial services stocks have been among the strongest performers on the Nigerian Exchange (NGX), driving gains in the benchmark index.

• Among the standout performers is Fortis Global Insurance Plc, which has generated returns of about 1,400% in dollar terms this year.
• Unlike South Korea’s market, where technology and AI-linked stocks play a dominant role, Nigerian-listed companies have limited direct exposure to the AI sector, shielding the market from the recent global technology selloff.

Frontier market upgrade could attract more investors

Investor optimism has also been supported by recent developments involving S&P Dow Jones Indices (S&P DJI), which placed Nigeria on its 2027 watchlist for a possible reclassification from a “Standalone” market to a “Frontier” market.

• The index provider said the decision reflects significant regulatory reforms aimed at improving market transparency, accessibility, enforcement, and overall market integrity.
• S&P DJI noted that Nigeria’s market reforms have strengthened investor confidence, although consistent policy implementation and improved operational resilience will remain key factors in determining whether the upgrade is approved.

A return to Frontier Market status would increase Nigeria’s visibility among international institutional investors and potentially attract fresh capital inflows from funds tracking frontier-market benchmarks.

What you should know

The strong performance comes as the Nigerian stock market recorded one of its biggest single-day gains in recent weeks.

On July 8, 2026, the NGX All-Share Index advanced 2.27% to 242,459.98 points from 237,083.28 points, while total market capitalization increased by N3.45 trillion to N155.59 trillion.

The rally was largely driven by Airtel Africa, whose shares rose by the maximum daily limit of 10% to N5,801.40.

As a result, the market’s year-to-date return climbed to 55.81%, recovering sharply from the 46.78% low recorded on July 7 and returning to levels last seen before the June market correction intensified.