African equity markets began the new trading week on a cautious and uneven footing on Monday, with investors across the continent balancing external market signals against domestic economic data, currency movements, and sector-specific developments. While some bourses benefited from selective buying in banking and consumer stocks, others saw early pressure linked to commodities and foreign-exchange sensitivity.
South Africa sets the regional tone
South Africa’s market opened marginally lower, reflecting restrained sentiment after mixed leads from global equities. Financials showed modest resilience, supported by stable bond yields, while mining counters came under early pressure as investors reassessed commodity prices at the start of the week. Traders remained attentive to currency movements, with the rand’s direction continuing to influence offshore flows into local equities.
Nigeria edges higher on selective buying
Nigeria’s market opened slightly firmer, led by interest in large-cap banking and consumer goods stocks. Investors appeared encouraged by expectations of improved liquidity conditions and ongoing corporate earnings positioning. However, gains were capped by continued caution around inflation dynamics and the naira’s performance, which remain central considerations for foreign and domestic investors alike.
Kenya trades cautiously amid policy focus
In East Africa, Kenya’s market opened largely flat, with limited early volumes. Market participants focused on interest-rate expectations and fiscal signals, particularly their implications for government securities and bank margins. While select stocks attracted bargain hunting, overall sentiment remained guarded as investors awaited clearer guidance on macroeconomic policy direction.
Egypt and North Africa show early stability
Egyptian equities opened the week with modest stability, supported by interest in export-oriented and defensive stocks. Investors continued to monitor currency developments and capital inflows, which have become increasingly important drivers of near-term market performance. Elsewhere in North Africa, trading was subdued, reflecting a wait-and-see approach at the start of the week.
Outlook for the week ahead
Across Africa, Monday’s opening reflected a broader pattern of cautious optimism tempered by uncertainty. Global interest-rate expectations, commodity price movements, and local policy signals are likely to shape trading in the days ahead. For now, investors appear selective rather than risk-seeking, favouring balance-sheet strength and defensive positioning as the new week gets underway.
Newshub Editorial in Africa – 29 December 2025
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