Casablanca – Despite ongoing economic challenges and the lingering impacts of drought and inflation on the financial market, the Casablanca Stock Exchange reported a relatively positive performance in the first half of 2024. The MASI index saw a 10% rise, reaching 13,301 points by the end of June.

Unlike last year, which was marked by financial turmoil for investors, the first half of 2024 saw a period of stability. The market experienced development phases with only slight pauses, leading to regular and sustainable growth. This stability reassured investors and boosted their transactions, resulting in a trading volume of $3.76 billion, more than double the $1.56 billion recorded in the first six months of 2023.

The financial market’s recovery was especially evident in the first quarter, with individuals increasing their purchases by 4.8 times. Collective investment schemes and institutional investors also significantly boosted their stock market purchases, increasing by 129% and 80%, respectively.

The Casablanca Stock Exchange also saw a resurgence in small and medium-capital activities, with a 21.34% rise in the “MASI Mid & Small Caps” index, which tracks the performance of listed small and medium-sized companies. This growth reflects the increasing interest of investors in medium and small companies, particularly in the real estate sector.

Most recovered sectors

The most significant increases in the Casablanca Stock Exchange transactions were concentrated in three main sectors: real estate, mining, and healthcare. These sectors achieved growth rates of 122%, 41.42%, and 39.31%, respectively.

The recovery of real estate stocks was attributed to increased demand for properties due to multiple factors, particularly financial ones. The direct housing support program played a crucial role in stimulating market demand and increasing various real estate transactions.

The mining sector’s recovery was linked to regained investor confidence following the rise in basic metal prices and favorable forecasts for the coming years.

The healthcare sector also saw significant growth, driven by the activities of the “Akdital” group, which achieved a 39.31% increase since its listing on the stock exchange 18 months ago. The group recorded an exceptional performance of 126%, reinforcing its position as a leader in the private healthcare sector in Morocco.

Underperforming stocks

Despite the positive dynamics and strong growth in the Casablanca Stock Exchange, some stocks and sectors underperformed in the first half of the year. Legal disputes over infrastructure affected the activities of telecom companies, causing the sector to decline by 9.50%. The “Maroc Telecom” index dominated sector activities.

Technology company stocks varied since the beginning of the year. “HPS” recorded a 16.5% decline, despite the growth of the “Desti” company by 35%. The paper sector indices also fell, with “Med Paper” recording a 7.37% decline.

Profit expectations

Aggregate profits for companies listed on the Casablanca Stock Exchange are expected to increase by the end of the year. The profitability trend for major stocks is predicted to continue its upward trajectory in 2023 and 2024.

Last year’s recorded profits were driven by the performance of various sectors, led by banks, which contributed 73% to the total sector turnover growth. The banking sector showed resilience to inflation and drought factors.

During the first half of 2024, the Casablanca Stock Exchange experienced a strong positive trend. This growth was driven by favorable economic conditions and a resurgence of investor confidence, leading to a solid performance in the stock market.