Nigeria has dropped to third place in the global ranking of best-performing stock markets after holding the top position for about five weeks. According to Bloomberg data covering 92 stock exchanges worldwide, South Korea has reclaimed the number one spot, while Ghana now ranks second. South Korea’s KOSPI has gained 68.52 per cent in dollar terms since the beginning of the year, compared with Ghana’s 66.68 per cent and Nigeria’s still impressive 65.23 per cent.
Nigeria took the global lead on July 10 after overtaking South Korea, following months of strong gains on the Nigerian Exchange Limited (NGX). However, a sharp recovery in South Korean equities, particularly technology stocks such as Samsung Electronics and SK Hynix, has changed the ranking. Renewed optimism surrounding demand for memory chips linked to artificial intelligence has helped the KOSPI recover strongly after losing about 40 per cent between June 22 and July 30. Since its July 30 low, the index has climbed by about 23 per cent.
Despite losing the global crown, the Nigeria stock market performance remains remarkably strong. The NGX All-Share Index fell 2.78 per cent between August 10 and August 14, closing at 242,619.2 points, while market capitalisation dropped from N160.4 trillion to N156.6 trillion. Analysts, however, say the recent decline reflects profit-taking rather than a breakdown of the market’s broader bullish trend. Improved macroeconomic conditions, relative naira stability, foreign exchange reforms, stronger corporate earnings, banking recapitalisation and attractive dividend opportunities have continued to support investor confidence.
Another major factor behind Nigeria’s resilience has been the growing influence of local investors. Domestic investors accounted for about 89 per cent of market participation and transactions during the first half of 2026, compared with 11 per cent for foreign investors. This strong local participation has helped the NGX maintain momentum despite relatively low foreign portfolio investment. The naira’s recent strength has also supported Nigeria’s dollar-denominated market returns, with the official exchange rate standing at about N1,357.70 to the dollar on August 14.
For investors, Nigeria’s fall to third place may be less important than its ability to remain among the world’s strongest-performing markets. Patrick Ajudua, President of the New Dimension Shareholders Association of Nigeria, described the ranking shift as a normal movement caused by changing economic conditions. He said investors should pay more attention to the sustainability of Nigeria’s performance, expressing optimism that the country could reclaim the top position following the planned listing of Dangote Refinery. With a year-to-date dollar return of 65.23 per cent, Nigeria may have lost the global crown for now, but its stock market remains firmly in the international spotlight.
source: The guardian
