The Tunis Stock Exchange marked time Thursday, following the publication by the Central Bank of Tunisia (BCT) of a new circular governing the conditions for distributing dividends for the fiscal year 2025.
This announcement halted the positive momentum observed since the beginning of the year, with the benchmark index falling by 0.44%, reflecting a clear resurgence of caution among investors.
The market, which had been on an upward trajectory driven by favorable expectations for listed companies’ results, was quickly caught up by the implications of this new prudential framework.
Indeed, the BCT circular introduces stricter restrictions on the ability of banks and financial institutions to distribute their profits, in a context of tightening solvency and capital adequacy requirements.
Unsurprisingly, the banking sector, which is particularly sensitive to this type of regulatory measure, was the most affected.
The banking index fell by 0.74%, confirming a correction fueled by fears of reduced returns for shareholders and an unfavorable shift away from financial stocks.
The financial services sector also ended lower (-0.43%), while the broader financial index gave up 0.62%.
The downward trend spread to the majority of sectoral compartments. Indices for consumer goods, agri-food, and household products recorded moderate declines, reflecting a climate of widespread wait-and-see attitude.
Only a few segments, such as distribution and certain consumer services, posted slight gains, which were insufficient, however, to offset the overall market decline.
Beyond the immediate reaction, this sequence illustrates the structural sensitivity of the Tunis Stock Exchange to prudential policy decisions.
The limitation of dividends, although justified by the imperatives of financial stability and convergence towards international standards, alters expectations and reshapes investor allocation strategies, particularly for institutional investors.
In this context, the market is likely to remain volatile in the short term, as market participants fully incorporate the new regulatory constraints and reassess the valuation prospects for financial stocks, which represent a significant portion of total market capitalization.
