Nigeria stock market don become di world best-performing equity market for dollar terms dis year, as e don pass South Korea, because investors dey happy with di country better macroeconomic outlook and di ongoing economic reforms.
According to Bloomberg data wey track performance across 92 global stock exchanges, Nigeria main equity index don give 67% return for US dollar terms since di beginning of di year, and e small pass South Korea Kospi Index wey don give 66% return.
Dis change for global ranking happen as South Korea stock market dey face strong pressure from big correction for technology and artificial intelligence-related stocks.
Di Kospi don enter technical bear market after e drop 22% from im June 19 peak, showing say people dey fear whether di AI-driven rally wey push di market earlier for di year go continue.
Currency weakness don add more pressure on South Korean equities. Di won don drop about 5% against US dollar dis year, wey make am one of Asia weakest-performing currencies and reduce returns for foreign investors.
Nigeria, for di oda side, don benefit from better economic fundamentals, sustained policy reforms, stronger global oil prices and improved foreign exchange liquidity. Dese developments don strengthen investor confidence and support capital inflows into Nigerian Exchange (NGX).
Di appreciation of naira by about 4% against US dollar since January don further enhance returns for international investors, and e don help di market reach di top position for dollar terms.
Financial services stocks don be among di strongest drivers of di rally, with many banking and insurance companies wey don post big gains. Fortis Global Insurance Plc don be one of di standout performers, wey don generate estimated 1,400% return for dollar terms dis year.
Unlike South Korea, where technology and AI-related companies get big share of market capitalization, Nigeria listed companies get limited direct exposure to dat sector. Dis one don protect di local market from di recent global technology wahala.
