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Valuation remains correct according to financial sector regulators

The Moroccan stock market presents intriguing indicators at the end of 2024. According to the financial sector regulators (AMMC, BAM, ACAPS and Ministry of the Economy and Finance) who have just held, on December 24, the 20th meeting of the Systemic Risks Coordination and Surveillance Committee (CCSRS), the MASI index displays an exceptional performance with a gain of 22% since the start of the year.

But the overall PER (Price-to-Earnings Ratio) of the market stands at 17.7x according to this committee, which recalls that this level remains below its average of the last five years, located around 20x.

This discrepancy is explained by an increase in the profits of listed companies, which makes it possible to maintain the market at a correct valuation level.

At the same time, an encouraging sign lies in the renewed interest of individuals in the Casablanca Stock Exchange, reported by the committee. This return is manifested by an increase in the opening of securities accounts, an increase in the number of UCITS unit holders, and an increasing volume of transactions carried out by these individual investors.

Another positive indicator noted by regulators lies in the unrealized capital gains of insurers, which recorded a spectacular increase of 62.3% compared to the end of the previous year. At the end of October 2024, these capital gains reached 35.2 billion dirhams, driven by the recovery of the stock market and the fall in rates.

Stock market liquidity also shows a clear improvement, with a ratio of 11.48% at the end of November 2024, compared to 9.50% a year earlier.


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