African markets are expected to open cautiously on Monday, with investors balancing local economic data, global commodity trends, and persistent inflation concerns. While some exchanges may see support from reforms and external demand, overall sentiment remains fragile across the continent.
South Africa eyes key data releases
In Johannesburg, the JSE is likely to begin the week with modest gains, though activity will remain subdued ahead of crucial domestic indicators. Traders are awaiting consumer inflation and GDP data later this week, which will provide fresh direction for both equities and the rand. Mining and resource-linked shares could face pressure from softer commodity prices, while banking stocks may provide a degree of stability.
Nigeria weighed by currency volatility
The Nigerian Exchange is expected to open mixed, reflecting ongoing concerns over currency weakness and high inflation. Financial and consumer-focused companies remain under strain as households face rising costs. However, energy-related equities could attract some interest if oil prices stabilise, offering a partial offset to broader uncertainty.
Egypt and North Africa show resilience
In Cairo, the EGX is projected to open relatively firm, supported by optimism around tourism inflows and ongoing structural reforms. Nevertheless, currency devaluation risks continue to hover over investor sentiment. Across North Africa, regional markets are broadly expected to mirror global caution, particularly as traders track developments in Europe and the Middle East.
East Africa steadies on domestic demand
Markets in East Africa, including Kenya, may show a slightly firmer tone as domestic demand and a stable tourism outlook underpin sentiment. Yet higher import costs and weaker currencies remain persistent challenges, limiting the scope for sustained rallies.
Global factors dominate outlook
Across the continent, the opening tone reflects broader global uncertainties. Investors are watching commodity price movements closely, as many African economies remain heavily dependent on exports such as oil, metals, and agricultural products. In addition, US Federal Reserve signals and currency market volatility are expected to play a decisive role in shaping capital flows into African markets this week.
REFH – Newshub, 15 September 2025
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