Nigeria’s stock market has emerged as the world’s top performer in dollar terms this year, overtaking South Korea after a sharp sell-off in Asian equities weakened the Kospi’s record rally.
According to data from 92 global stock exchanges, Nigerian equities have returned 68 per cent in dollar terms since the beginning of the year, edging past South Korea’s 66 per cent gain, Bloomberg reported.
The shift comes as South Korea’s benchmark Kospi index slipped into a technical bear market this week, falling 22 per cent from its June 19 peak amid growing investor concerns over the long-term sustainability of the artificial intelligence-driven rally.
Investor sentiment has also been weighed down by the weakening South Korean won, which has declined five per cent this year, making it the fourth-worst-performing currency in Asia.
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Nigeria’s rally, however, has been fuelled by a combination of macroeconomic reforms, stronger crude oil prices and improved foreign exchange liquidity, with the naira appreciating about four per cent against the dollar since January.
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The country’s investment outlook also received a boost this week after reports that S&P Dow Jones Indices is considering upgrading Nigeria to frontier market status, a move analysts believe could attract more foreign portfolio investment.
Financial services companies listed on the Nigerian Exchange have been among the strongest performers, with Fortis Global Insurance Plc posting an exceptional 1,400 per cent return in dollar terms.
