Heightened geopolitical tensions in the Gulf and domestic market dynamics have contributed to a sharp pullback on the MASI at the Casablanca Stock Exchange, following a strong rally that marked the end of 2025 and early 2026, a recent report by Attijari Global Research (AGR) showed
Despite solid corporate earnings, the Moroccan equity market experienced one of the steepest declines among African and European bourses in recent weeks.
The MASI fell 12% between February 20 and March 3, 2026, even as listed companies posted accelerating revenue growth.
“Fourth-quarter 2025 earnings were released in a particular context marked by escalating military tensions in the Middle East,” AGR said, pointing to heightened investor risk aversion during the period.
However, the report stresses that geopolitics alone does not explain the magnitude of the decline. Domestic factors—particularly the growing influence of retail investors—have amplified market volatility.
Over the past two years, Morocco’s equity market has undergone a structural shift with the strong return of individual investors. Their share of trading volumes has more than doubled, rising from an average of 12% between 2019 and 2023 to around 28% since 2025, according to AGR.
The emergence of around 15 discretionary portfolio management operators targeting retail investors has also reshaped market dynamics, AGR analysts noted.
These operators currently manage about MAD 80 billion, with roughly 15% allocated to equities. Portfolio turnover among these mandates is estimated at three to six times annually, compared with around 0.5 times for traditional equity mutual funds, increasing the speed of market swings, AGR said.
The pullback occurred despite stronger corporate fundamentals. Aggregate revenues of listed companies reached 98.4 billion dithams in Q4 2025, up 12.2% year-on-year, compared with an average growth of 7.2% in the first three quarters of the year.
Mining and construction sectors drove more than 60% of the increase in revenues, supported by higher gold and silver prices and strong investment activity in Morocco.
The energy sector was the only major segment to record a decline, with revenues down 5.7% year-on-year.