Nigeria has lost its position as the world’s best-performing stock market after five weeks of control, following a strong rebound in South Korean equities that pushed the country’s benchmark index back to the top of the global ranking.

Ghana now ranks second globally, while Nigeria has dropped to third, according to Bloomberg data covering 92 stock exchanges worldwide.

According to the data, South Korea’s KOSPI 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 65.23 per cent.

Nigeria had taken the global lead on July 10 after overtaking South Korea, following months of strong gains of equities listed on the Nigerian Exchange Limited (NGX).

The latest development means Nigeria held the position as the world’s best-performing stock market for about five weeks before the sharp recovery in Korean equities pushed it down the ranking.

The rebound in South Korea was driven largely by technology stocks, particularly Samsung Electronics and SK Hynix, amid renewed optimism over demand for memory chips linked to artificial intelligence (AI).

The KOSPI witnessed a sharp correction, falling about 40 per cent between its June 22 peak and July 30 low. However, the index has since recovered strongly, gaining about 23 per cent from its July 30 low.

Meanwhile, the Nigerian market has remained one of the strongest performers globally despite recent profit-taking and losses in major stocks.

The NGX All-Share Index (ASI) fell 2.78 per cent between August 10 and August 14, closing at 242,619.2 points, while the market capitalisation declined from N160.4 trillion to N156.6 trillion during the period.

Analysts attributed Nigeria’s strong market performance to improved macroeconomic conditions, relative stability in the naira, foreign exchange reforms, stronger corporate earnings, banking recapitalisation and attractive dividend payments.

The market has also continued to benefit from strong participation by domestic investors, who have increasingly taken the lead in driving trading activities on the NGX.

Domestic investors accounted for about 89 per cent of market participation and transactions in the first half of 2026, while foreign investors accounted for about 11 per cent.

The strong domestic participation has helped the Nigerian market maintain its momentum despite relatively weak foreign portfolio investment.

The naira has also provided support for Nigeria’s dollar-denominated market performance. The official exchange rate stood at about N1,357.70 to the dollar on August 14, representing one of the currency’s strongest levels in recent months.

Despite losing the global crown, Nigeria’s 65.23 per cent year-to-date return in dollar terms places the NGX among the strongest-performing stock markets in the world.

Operators said the recent correction should not be interpreted as a reversal of the broader bullish trend, noting that investors are still attracted by strong corporate earnings, dividend prospects and ongoing reforms across key sectors of the economy.

President of New Dimension Shareholders Association of Nigeria, Patrick Ajudua, said the drop in Nigeria’s position from the world’s best-performing stock market should not be seen as a setback, as stock market indices are expected to fluctuate in response to economic developments.

Ajudua pointed out that what should matter more to investors is Nigeria’s ability to maintain its strong performance and regain the top position in the global ranking.

He said the country’s continued strong performance would be more significant than a temporary movement in the ranking, noting that benchmark indices naturally respond to changing economic conditions.

“It is really not a drawback as such because benchmark indices are bound to fluctuate due to economic factors.”

He noted that investors should instead focus on how long Nigeria is able to sustain its position among the world’s best-performing markets.

He also expressed optimism that Nigeria would return to the number one position following the planned listing of Dangote Refinery, stating that the listing would provide another boost to the market.

“What will be of interest is how we have been able to sustain our ranking and the anticipated comeback to first position after the listing of Dangote Refinery, which pushed us to the top,” he said.