Global stock market reshuffle! AI cools down, 'this country' overtakes South Korea to become world No. 1, Taiwan's latest ranking revealed

Nigeria's stock market has emerged as the top performer globally in 2026, outperforming South Korea with a remarkable 68% return in dollar terms. This surge places Nigeria ahead of South Korea's KOSPI index, which has recently entered a technical bear market, declining 22% from its June 19th peak. Investor concerns about the long-term sustainability of artificial intelligence-driven growth have led to significant capital outflows from Asian tech stocks, impacting markets like South Korea.

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Global capital institutions are reassessing Nigeria, this is reflected in the potential inclusion of its assets in more international indices, and the market recognition of the results of economic reforms in recent years.

In contrast, Nigeria's stock market has been propelled by economic reforms, rising oil prices, and improved foreign exchange availability. The Nigerian naira has appreciated nearly 4% against the dollar since January. Furthermore, the potential inclusion of Nigeria in frontier market indices by S&P Dow Jones Indices is expected to further boost international investor interest.

Arnold Dublin-Green, Managing Director at RC Asset Management, noted that global capital institutions are reassessing Nigeria, reflected in its assets' potential inclusion in more international indices and the market recognition of recent economic reform successes. He added that Nigeria started from a low base, which contributed to its previous downgrade, but conditions are now improving.

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Don't forget, Nigeria started from a very low base, and these were the problems that led to its downgrade. Now the situation is improving.

Taiwan's stock market holds the fourth position globally with a 54% return, largely driven by its prominent AI-related companies such as SK Hynix, Samsung Electronics, and TSMC. Unlike South Korea's market, Nigerian listed companies have minimal direct involvement in the AI industry. Damilola Okeleye, a trader at Stonex Nigeria Financial, attributed Nigeria's market gains to broader improvements in economic fundamentals, including ongoing reforms and the potential future listing of the Dangote Petroleum Refinery and Petrochemicals FZE, Africa's largest oil refinery.

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The factors driving capital inflows into the Nigerian stock market are not AI, but broader economic fundamentals improvement.