2023-06-01 18:19:00
Thursday, June 1, 2023 at 7:19 PM
Casablanca – The Moroccan equity market is beginning to reinvigorate thanks to renewed interest from investors in the stock market, said Thursday in Casablanca, the Managing Director of BMCE Capital Bourse, Majd Guebbas.
“The start of 2023 has not been kind to investors, but for the past few weeks we have seen renewed interest in the equity market, which is currently growing in volume by +3%”, underlined Mr. Guebbas. in a statement to MAP on the sidelines of the Moroccan Equity Summit 2023.
After recalling that the Casablanca Stock Exchange had closed the year 2022 on a historic drop, its main index, the Masi, having lost nearly 20% of its value, the specialist pointed out a gradual return of local and foreign investors to the regard to the alleviation of certain risk factors.
In this regard, Mr. Guebbas cited the downward trend in inflation, and the stabilization of commodity and energy prices, noting that at the same time the bond market continues to “drive” the financial market as a whole. following the drop in tension on interest rates which fell back following their appreciation at the start of the year.
All of these factors are boosting investors’ appetite for the equity market, which gives optimism regarding developments for the rest of the year, he added.
However, continues Mr. Guebbas, the complexity of the economic context coupled with the timidity of the growth forecasts, directs investors towards the most resilient sectors, or at least, which do not present risks of volatility, evoking, in this respect, the results for the 1st quarter of the banking sector, which posted a good performance with an increase in the net banking income of almost all the banks in the market.
Other sectors are considered resilient in the market, such as logistics and transport, which also performed very well, he said.
The same goes for the Deputy Managing Director of BMCE Capital Global Research, Hicham Saadani, who indicates that investors favor stocks of resilience which can cope with difficult economic conditions, and at the same time distribute attractive dividends, noting that this what takes precedence for the investor is the trade-off between the return on the share and that on the bond.
“In the current context we can say that the banks have held up well, both in 2022 and even more surprisingly in Q1-2023, when we thought that this period would be the most difficult for the banking sector and that the indicators might not be ‘improve only by the end of the year,’ explained Mr. Saadani, who also said he was favorable to the sectors of port activities, large-scale distribution, agribusiness and insurance.
Today the equity market is at a turning point. The gradual return of investors to action, given the generally stable expectations on the key rate, is a signal of optimism for market participants, said Mr. Saadani, believing that the approach of the publication of half-year results listed companies may also contribute to the influx of investors in the coming weeks.
Organized by BMCE Capital, Business Banking Division of the Bank Of Africa (BOA) Group, the Moroccan Equity Summit should bring together over two days a wide range of local and foreign investors as well as companies listed in Morocco and the Moroccan area. West African Economic and Monetary Union (UEMOA).
The hundred participants in this meeting in hybrid format will thus have the opportunity to take part in a series of meetings organized in different formats to optimize exchanges and have all the information necessary to support their choice of investment.
According to the organizers, the Moroccan Equity Summit aims to offer a unique and direct exchange framework to participants, institutional investors and listed companies, for a rich and constructive sharing of information.
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