Tunis Stock Exchange shows resilience despite September correction

The Tunis Stock Exchange, represented by the Tunindex, experienced a 5.3% decline in September, closing at 18,386.4 points. Despite this monthly retreat, the index remains one of the best-performing in the Arab world, maintaining a 36.7% gain since the start of the year.

Data from the Arab Federation of Capital Markets (AFCM) indicates a significant surge in transaction value, which rose 67.2% to $144.1 million in September compared to $86.2 million in August. However, the volume of shares traded fell by 27.9% to 16.2 million shares. This suggests a market characterized by higher-value trades and larger unit sizes rather than broad participation, as the average value per share traded rose from approximately $3.8 to $8.9.

Market analysts note that while the first half of the year provided strong performance driven by corporate activity and favorable macroeconomic conditions, investor sentiment is currently facing headwinds. Concerns regarding geopolitical tensions and limited economic visibility are creating a tug-of-war between attractive stock valuations and macroeconomic uncertainty.