African markets are expected to begin Monday’s trading with a blend of optimism and restraint as global sentiment remains fragile. Investors are weighing the impact of firmer commodity prices against the drag of tight fiscal conditions, weaker currencies, and lingering geopolitical uncertainty.
Commodities offer near-term support
Rising oil and metal prices may lend support to exporters such as Nigeria, Angola, and South Africa. The continent’s commodity-linked economies continue to benefit from resilient global demand, though the recent volatility in energy prices could limit gains. Agricultural producers are also likely to see modest improvement as weather conditions stabilise in key regions.
South Africa and Nigeria in focus
The Johannesburg Stock Exchange enters the week with eyes on mining and banking shares, as investors position themselves ahead of fresh inflation data later this week. In Nigeria, trading is expected to remain driven by oil revenues, foreign exchange policy signals, and ongoing reforms in the energy sector. Liquidity challenges, however, continue to cap momentum for local equities.
Regional dynamics shaping sentiment
Across East Africa, Kenya’s market sentiment remains mixed, with investors cautiously tracking fiscal consolidation efforts and the shilling’s recent stabilisation. Ghana and Côte d’Ivoire may attract selective buying as yields ease on regional debt instruments, but capital inflows remain sensitive to shifts in global risk appetite.
Outlook for the week
The overall tone is likely to be subdued, with most investors adopting a wait-and-see approach until greater clarity emerges on external trends such as US interest rates and Chinese demand. Traders will focus on large-cap names and dividend-paying stocks, while bond markets may stay quiet amid limited policy signals.
Despite near-term uncertainty, improving inflation trajectories and stabilising currencies across several African economies could underpin cautious optimism. For now, the region’s markets remain driven more by global headwinds than domestic weakness.
Newshub Editorial in Africa – 13 October 2025
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