Nigeria has fallen to third place in the global stock market rankings after South Korea reclaimed the top spot, according to Bloomberg data covering 92 stock exchanges. The KOSPI index has gained 68.52 per cent in dollar terms year-to-date, followed by Ghana at 66.68 per cent and Nigeria at 65.23 per cent.
Nigeria had held the crown for about five weeks after overtaking South Korea on July 10, following months of strong gains on the Nigerian Exchange Limited (NGX). However, a sharp rebound in South Korean equities, driven by technology stocks, has pushed the Asian market back to the top.
South Korea’s Tech-Driven Rebound
The KOSPI’s resurgence is largely powered by a strong recovery in technology stocks, particularly Samsung Electronics and SK Hynix. Investor optimism has strengthened around demand for memory chips used in artificial intelligence infrastructure, helping the index recover sharply from a recent correction.
The index plunged about 40 per cent between its June 22 peak and July 30 low but has since rebounded by roughly 23 per cent, enough to restore South Korea’s position at the top of the global ranking.
NGX Faces Profit-Taking
Nigeria’s stock market, meanwhile, has experienced some profit-taking after its powerful run. The NGX All-Share Index fell 2.78 per cent between August 10 and August 14, closing at 242,619.2 points. Market capitalisation also declined from N160.4 trillion to N156.6 trillion during the period.
Despite the recent correction, analysts say the broader bullish trend remains intact. Improved macroeconomic conditions, greater naira stability, foreign exchange reforms, stronger corporate earnings, banking recapitalisation and attractive dividend yields have continued to support investor interest.
Domestic investors have become a major force behind market activity, accounting for about 89 per cent of transactions in the first half of 2026, compared with 11 per cent for foreign investors. The naira’s relative stability has further supported Nigeria’s dollar-denominated market performance, with the official exchange rate at about N1,357.70 per dollar on August 14.
Investors Still Watching Nigeria
Patrick Ajudua, president of the New Dimension Shareholders Association of Nigeria, said Nigeria’s fall from the top should not be viewed as a major setback. He noted that global rankings naturally change as benchmark indices respond to economic and market developments.
“The more important issue is whether Nigeria can sustain its position among the world’s strongest markets and eventually reclaim the top spot,” Ajudua said. He also expressed optimism that the anticipated listing of Dangote Refinery could provide another major boost to the NGX.
Despite losing the global crown, Nigeria’s 65.23 per cent year-to-date dollar return keeps it firmly among the world’s strongest stock markets.
