The Korean stock market is no longer the most efficient in the world. Which market has surpassed it?
Amid macroeconomic changes and rising oil prices, the Nigerian market has outperformed South Korea, where investors have lost confidence in AI-sector stocks / Photo: Obinna Okerekeocha / Shutterstock
After falling 6% over the past month and more than 20% from its June high, the South Korean stock market is no longer the world’s best-performing market this year, according to Bloomberg. In dollar terms, Korean stocks have been outperformed by Nigerian stocks. The trend reversed due to deteriorating investor sentiment toward AI stocks, the agency notes.
Details
According to Bloomberg estimates, the benchmark index of Africa’s largest oil-producing country—Nigeria—has yielded a 67% return to investors in U.S. dollar terms since the start of the year, while the KOSPI’s return stood at 66%. At the same time, the South Korean index entered a technical “bear market” this week, falling 22% from its peak recorded on June 19. Thus, the Nigerian stock market has been the fastest-growing this year, the agency concludes—Bloomberg tracks data from a total of 92 global stock exchanges.
The agency notes that financial services companies led the growth in Nigeria. For example, shares of the insurance firm Fortis Global Insurance, traded on the Lagos Stock Exchange, have posted a return of 1,400% in dollar terms this year. Unlike the Kospi, companies listed in Nigeria are not directly affected by artificial intelligence, the agency explains. Damilola Okelaye, a trader at Stonex Nigeria Financial, cited the potential initial public offering (IPO) in Lagos of Dangote Petroleum Refinery and Petrochemicals FZE—the continent’s largest oil refinery—as another growth driver. Plans by S&P Dow Jones Indices to upgrade the country’s market status from “standalone” to “frontier-market status” could provide additional positive news, further boosting Nigeria’s appeal to investors. It was revealed this week that S&P is considering this possibility.
Context
Overall, the Nigerian naira has strengthened by 4% against the U.S. dollar since the start of the year, according to Bloomberg. The South Korean won has lost 5% over the same period, posting the fourth-worst performance among Asian currencies.
This article was AI-translated and verified by a human editor
