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African markets reflect cautious optimism amid regional contrasts

Equity markets across Africa opened with mixed momentum, reflecting a blend of domestic fundamentals, currency considerations, and global investor sentiment as trading activity unfolded across the continent. While some exchanges showed early resilience supported by financials and commodities, others remained subdued amid liquidity constraints and year-end positioning.

North African exchanges show selective strength
Markets in North Africa opened with measured confidence. Egypt’s exchange continued to attract attention as investors weighed inflation dynamics and policy expectations, while Morocco and Tunisia saw steady but unspectacular openings, driven largely by banking and consumer stocks. Algeria’s market remained relatively quiet, reflecting its lower liquidity and limited sector breadth.

West Africa steadies on domestic demand
West African exchanges opened broadly stable, with Nigeria and Ghana supported by interest in financial and energy-linked stocks. The regional WAEMU exchange reflected modest activity across its member states, underpinned by banking shares and infrastructure-related companies. Currency stability and domestic consumption trends remained central to investor focus.

East Africa mixed as investors remain selective
In East Africa, Kenya’s market opened cautiously as investors assessed earnings prospects and foreign participation, while Tanzania, Uganda, and Rwanda recorded light early trading. Activity across the region was characterised by selective buying rather than broad-based rallies, with institutional investors maintaining a disciplined stance.

Southern Africa anchored by South Africa
South Africa’s market set the tone for Southern Africa, opening with modest gains supported by resource stocks and globally exposed companies. Botswana, Namibia, Zambia, Zimbabwe, and Malawi saw quieter openings, reflecting smaller market sizes and limited cross-border flows, though mining-related counters provided pockets of interest.

Smaller markets and liquidity challenges
Exchanges in Cape Verde, Mozambique, Sudan, Swaziland, and Cameroon opened with thin volumes, highlighting ongoing liquidity and access challenges. These markets continue to play a growing but still niche role in regional capital formation, often driven by local investors and development-linked listings.

Continental outlook
Overall, African markets opened the session with cautious optimism, supported by improving macro stability in parts of the continent but tempered by global uncertainty and capital flow sensitivity. Investors are expected to remain focused on currency movements, commodity prices, and domestic policy signals as trading progresses.

Markets:

Newshub Editorial in Africa – 30 December 2025

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