By 
By Eric Osiakwan
The Nigeria Stock Exchange (NGX) has become the world’s top-performing equity market in US dollar terms, overtaking South Korea’s KOSPI index in the first half of 2026. Bloomberg data tracked from 92 global stock exchanges revealed that Nigeria’s benchmark index gained 67% in dollar terms with the South Korean KOSPI gaining 66%.
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The rally has been driven by economic reforms, stronger oil prices, improved foreign exchange liquidity and a 4% appreciation of the naira. Financial stocks have led the gains, with insurer Fortis Global Insurance posting a remarkable 1,483% dollar return.
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Additional optimism followed news that S&P Dow Jones Indices is considering restoring Nigeria to frontier-market status, a move that could improve investor confidence and attract more foreign investment.
In contrast, South Korea’s previously Artificial Intelligence (AI) fueled stock rally has slowed into a bear market, after shedding 22% since its June peak with its currency the South Korean won weakening 5% year-to-date. [1]
“Markets respond to confidence as much as fundamentals”
Accoridng to Eduje Russell, MBA, Senior Analyst, “A 67% return in dollar terms is certainly impressive, but perhaps the more important story is what is driving it. Markets respond to confidence as much as fundamentals. Improved foreign exchange liquidity, macroeconomic reforms, and growing investor optimism appear to be changing how investors view Nigeria’s long-term prospects.”
The challenge now is sustaining that confidence. Strong market performance is encouraging, but lasting economic transformation will depend on whether investment translates into higher productivity, stronger businesses, and shared prosperity.
Other African markets inched up in the global rankings with the Ghana Stock Exchange (GSE) All Share Index (ASI) growing at 40.75% whilst the Nairobi Stock Exchange (NSE) index expanded by 26.77%. In Europe, the United Kingdom’s FTSE 100 posted a 7.17% increase as Poland and Greece nested between them at 35.09% and 34.33% respectively.
The Nasdaq Composite in the United States returned 8.49%, while China’s SSE Composite gained 2.76% over the same period. Other markets that trailed include Germany’s DAX (20.09%), India’s Nifty 50 (7.31%), France’s CAC 40 (3.86%) and Japan’s Nikkei 225 (1.49%).
“African markets rallying ahead of global compatriots an indication of market maturation”
Three African markets rallying ahead of their global compatriots is an indication of market maturation and investor confidence in the continent’s capital markets. African stock exchanges surpassed $2T in combined market value showing signficant growth since 2024.[2]
The confidence in the market was demonstrated by the recent interest in banking and other blue chip stocks on the Nigerian bourse that lifted the market by 0.98% as market cap gained $1.1B. Another demonstration of the confidence is by local investors like United Capital who acquired 5% of Nigerian Exchange Group which operates the NGX.[3] Indicating that the confidence is coming from both local and foreign investors.
Adjacent to this, is the Dongote Refinery’s recent $2.5B private placement which was oversubscribed at 3.7X ahead of their IPO on the NGX (and other excganges in Africa).[4] The transaction follows the refinery’s completed $4B syndicate financing, which was arranged to refinance construction-related debt and optimise its capital structure.[5]
The Refinery’s IPO is now confirmed for September 2026, according to application submitted to Nigeria’s Securities and Exchange Commission (SEC). Emomotimi Agama, director general of SEC, said the company’s advisers are already working hand in hand with their teams to move the application forward.[6] It will significantly increase the market capitalization of Nigeria and other markets on which it will trade.
Alhaji Aliko Dangote, CEO of Dangotey Refinery announcing the IPO
The Institute for the Management of State Assets and Holdings (IGAPE), Angola’s state entity responsible for managing and privatizing public assets, has launched the Initial Public Offering (IPO) of a 15% stake in UNITEL, the country’s largest telecommunications operator. The transaction represents one of the largest capital market offerings ever undertaken in Angola.[7]
“Zimbabwe experimenting with a new tool to finance SMEs”
In Zimbabwe, the authorities are experimenting with a new tool to finance its small and medium-sized enterprises (SMEs). The Zimbabwe Entrepreneurship Exchange (ZEEX), capital markets platform regulated by the country’s SEC was launched with the goal for SMEs to have a clear path to raise private capital, then gradually access public markets. ZEEX compliments the stock market ecosystem that currently includes Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX).[8]
T2S Group Holdings made its debut on the Casablanca Stock Exchange with an offering capped at $118.2M, combining a capital increase of $37.6M with the sale of existing shares worth $80.6M by Trone Investment Holdings, all priced at $23.9 per share.[9]
“Egypt reinforcing commitments to economic reform programme backed by the IMF”
Next door in Egypt, the government has taken another step in its long-running privatisation drive after granting preliminary stock market listings to four state-owned companies, paving the way for the sale of government stakes and reinforcing commitments made under its economic reform programme backed by the International Monetary Fund (IMF).
Three of the companies are from the country’s petroleum sector: Engineering for Petroleum and Chemical Industries (ENPPI), Egyptian Linear Alkyl Benzene Company (ELAB), and Petroleum Marine Services. The fourth company is Maamoura for Reconstruction and Tourism Development, which operates in the real estate and tourism sectors.
Whilst the leading African markets are beating their global compatriots, the rest are seeing signficant developments whiles others are innovating to ensure liqudity – these bode will for investor confidence to grow the continent’s capital market.
[1] https://finance.yahoo.com/markets/stocks/articles/nigerian-stocks-vault-past-korea-102646964.html
[2] https://dabafinance.com/en/news/african-stock-markets-hit-record-highs?utm_source=Asoko+NL+Weekly+NEW&utm_campaign=f979748916-EMAIL_CAMPAIGN_2026_06_12_04_06_COPY_01&utm_medium=email&utm_term=0_aaca9700bc-95e8c1f873-510828615
[3] https://africa.businessinsider.com/local/markets/tony-elumelus-united-capital-acquires-5-stake-in-ngx-as-nigeria-bets-on-capital/4th2mmz?utm_source=Asoko+NL+Weekly+NEW&utm_campaign=e4361e8f3b-EMAIL_CAMPAIGN_2026_06_12_04_06_COPY_01&utm_medium=email&utm_term=0_aaca9700bc-95e8c1f873-510828615
[4] https://www.reuters.com/business/energy/dangote-refinery-raises-25-billion-private-placement-executive-says-2026-07-17/
[5] https://kenyanwallstreet.com/dangote-secures-us4bn-to-refinance-refinery-plans-listing
[6] https://www.african-markets.com/en/stock-markets/ngse/dangote-refinery-formally-files-ipo-application-with-nigerias-sec
[7] https://africabusinesscommunities.com/tech-24/igape-launches-ipo-for-15-stake-in-angolas-unitel/?utm_source=semafor
[8] https://www.african-markets.com/en/stock-markets/zse/zimbabwe-launches-zeex-a-new-capital-markets-platform-for-smes
[9] https://www.african-markets.com/en/stock-markets/bvc/t2s-group-debuts-on-the-casablanca-stock-exchange-after-successful-ipo
