Nigerian Stocks Overtake South Korea’s Kospi for World’s Top Returns

Nigerian equities have overtaken South Korea’s Kospi index to deliver the highest dollar-based returns of any stock market in the world this year, as souring sentiment toward artificial intelligence stocks pushes the Asian benchmark into bear territory.

The Nigerian Exchange’s benchmark All-Share Index has returned about 68 per cent in dollar terms so far this year, edging out the Kospi’s 66 per cent gain, according to data tracked across 92 global stock exchanges. The Kospi fell into a technical bear market this week after shedding 22 per cent since its June peak.

Financial services companies have driven much of the Nigerian rally, with insurer Fortis Global Insurance Plc delivering a return of about 1,400 per cent in dollar terms this year. The naira has also gained roughly four per cent against the dollar since January, adding to returns for foreign investors.

Analysts attribute the rally to macroeconomic reforms, higher oil prices and improved foreign exchange supply, alongside growing investor interest in Nigeria ahead of a potential listing of Dangote Petroleum Refinery, Africa’s largest crude processor.

A Lagos-based trader said Nigerian equities were benefiting from domestic fundamentals rather than the global technology cycle that has whipsawed Asian markets, noting that companies on the Nigerian Exchange are largely insulated from the AI stock volatility affecting other emerging markets.

The NGX All-Share Index advanced 2.27 per cent on July 8 alone, with total market capitalisation increasing by N3.45 trillion, driven largely by gains in Airtel Africa shares, which rose by the maximum daily limit.