The AMMC report for the third quarter of 2024 highlights a booming stock market, driven by the solid performance of the indices and sharply increasing transactional activity. If institutions remain the pillars of this dynamic, the growing involvement of individuals and the diversification of players give the market increased robustness and resilience.
The stock market continued to demonstrate its resilience and dynamism in 2024, as evidenced by the report recently published by the Moroccan Capital Market Authority (AMMC), for the third quarter, on the profile of investors. This document highlights a marked progression in activity indicators, a renewed confidence of investors and a greater diversification of the categories of stakeholders.
A sustained growth dynamic
At the end of the third quarter of 2024, the transactional volume on the central and block markets reached 13.1 billion dirhams (billion dirhams), showing a spectacular increase of 49.2% compared to the same period of the previous year.
This dynamism is driven by an exceptional performance of the main indices: the MASI increased by 8.06% over the quarter, bringing its annual gain to 18.9%, while the MASI 20 recorded a quarterly increase of 8.12%, for a cumulative performance of 17.4% since the end of December 2023. This rise in indicators reflects not only renewed investor confidence, but also a growing attractiveness of the Moroccan stock market on the regional scene.
A market dominated by institutional investors
Institutional investors, mainly comprising Organizations for Collective Investment in Transferable Securities (UCITS) and Moroccan legal entities, dominate the transactional landscape with a share of 62.4% of volumes traded over the quarter. They are followed by Moroccan individuals (25.8%), foreign investors (5.9%) and those passing through the banking network (5.5%).
UCITS particularly marked the quarter by positioning themselves as net buyers, with acquisitions totaling MAD 5.1 billion compared to MAD 3.8 billion in sales. Although these volumes are down slightly compared to the second quarter, this category of investors confirms its strategic role in the stability and growth of the market.
Moroccan individuals on the rise
Another highlight of the quarter lies in the activity of Moroccan individuals, who doubled their purchases compared to Q3-2023, reaching 3.3 billion dirhams. However, a drop of 26.6% is observed compared to Q2 – 2024, reflecting a occasionally more selective situation.
Sales achieved by this category also saw a remarkable increase of 89.7% year-on-year. This renewed activity illustrates the growing interest of small investors in the stock market, thus reinforcing its depth and diversity.
A slight increase in foreign participation
Foreign legal entities, although still marginal in terms of market share, are showing notable growth in their activity. Their purchases amounted to 731 million dirhams (MDH), up 25.4% compared to Q2-2024 and 5.4% compared to Q3 – 2023. Sales, for their part, decreased by 40 .6% compared to the previous quarter, a sign of a strategy more focused on the accumulation of positions.
An activity concentrated on the central market
The central market remains the main driver of the Moroccan stock market, representing 98.2% of total trade in the third quarter. With a volume of MAD 12.9 billion, it recorded an impressive increase of 72% compared to Q3-2023.
On the other hand, the block market, which represents only 1.8% of trade, shows a significant decline, with a volume of only 234 MDH (-82.3% year-on-year). This concentration illustrates the vitality of the central market, where the diversity of orders and participants plays a key role in the liquidity and transparency of transactions.
Strongly expanding operational indicators
The number of exchange orders on the central market jumped 57.7% compared to Q3-2023, reaching 331,459 in Q3-2024. Likewise, the number of contracts increased by 67.1% over the same period, reflecting an intensification of trade and better investor participation. These trends confirm the increased efficiency of market infrastructures and the capacity of the Casablanca Stock Exchange to absorb increasing volumes in a secure and transparent framework.
Prospects and challenges for the market
The positive development of the Moroccan stock market in Q3-2024 paves the way for promising prospects for the coming quarters. However, several challenges remain, including the need to attract more foreign investment and strengthen financial inclusion for individuals.
The diversification of financial instruments and the introduction of new products, such as thematic funds or ETFs, could play a key role in this strategy. At the same time, maintaining the confidence of institutional investors will be decisive in consolidating the current dynamic and continuing the development of the market.
Sanae Raqui / ECO Inspirations
