Nigerian equities have overtaken South Korea to become the world’s best-performing stock market in dollar terms this year, according to a Bloomberg report.
The Nigerian Exchange’s benchmark index has returned 67% in dollar terms in 2026, edging out South Korea’s Kospi index at 66%, per data tracking 92 global exchanges. South Korea’s rally collapsed into a technical bear market this week, down 22% from its June peak, as investors soured on AI-stock valuations and the won weakened 5% against the dollar.
Nigeria’s rally rests on different fundamentals: macroeconomic reforms, firmer oil prices, and a naira that has gained about 4% since January, boosting dollar returns for foreign investors. Financial services stocks led the charge, with Fortis Global Insurance Plc up roughly 1,400% in dollar terms.
Momentum got a further boost this week when S&P Dow Jones Indices placed Nigeria on its 2027 watchlist for possible reclassification to Frontier Market status, citing improved regulatory transparency, though it cautioned that consistent policy implementation remains necessary.
The rally has since cooled slightly, with the index dipping 1.21% week-on-week amid profit-taking.
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