Farid Mezouar, Executive Director of FL Markets
Interview by Kaoutar Khennach
The year 2024 marked an important turning point for the Casablanca Stock Exchange, which was able to take advantage of a favourable economic and monetary context to record remarkable performances. Farid Mezouar, financial markets expert and Executive Director of FL Markets (flm.ma), reviews the highlights of this year with us and shares his forecasts for 2025.
Al Bayane: How would you describe the overall evolution of the Casablanca Stock Exchange in 2024?
Farid Mezouar: 2024 was an exceptional year for the Casablanca Stock Exchange, which set a new absolute historical record for the Masi with an annual performance of 21.1%. This performance is explained by solid fundamentals, notably the significant drop in bond yields, favoured by disinflation and a 50 basis point reduction in Bank Al-Maghrib (BAM) key rates. Furthermore, the results of listed companies followed a positive dynamic, with a 19% increase in profits in the first half, accompanied by revenue growth despite the disinflationary movement.
What were the highlights of this year for the Moroccan stock market?
One of the key moments of 2024 was the launch of the futures market, which represents a major step forward for Moroccan capital markets. This new tool offers opportunities for hedging against risks, improves liquidity, and stimulates financial innovation. In parallel, the regulatory framework for UCITS continued to evolve, strengthening the market structure. These changes also led to a restructuring of the activities of the Casablanca Stock Exchange, notably with the creation of dedicated subsidiaries for the spot market, the futures market, and the clearing house, as well as an increased stake in Maroclear.
Which economic, political, or international events most influenced the market this year?
The awarding to Morocco of the co-organisation of the 2030 World Cup was a determining event. This project goes beyond the sporting framework, as it is part of a major economic transformation dynamic, with the opening of large infrastructure projects, a stimulation of employment, and a strengthening of tourist attractiveness.
Furthermore, the implementation of direct aid, notably for the acquisition of primary residences, contributed to reviving entire sections of the national economy, injecting purchasing power and supporting a Keynesian recovery.
What was the impact of monetary and fiscal policy on market performance?
The drop in BAM's key rates played a crucial role in the evolution of financial markets in 2024. By favouring a relaxation of bond yields, this policy mechanically stimulated the performance of stocks, notably those of banks, which also benefited from good results in their market activities.
How did investors react to the global economic situation?
Local investors scrutinised international trends with attention. The drop in ECB and FED key rates, each by 100 basis points, reinforced expectations of monetary easing in Morocco. Furthermore, geopolitical tensions in the Middle East aroused passing concerns, without, however, significantly affecting energy costs or the tourism sector.
Did local investors change their behaviour this year?
Indeed, Moroccan investors intensified their activity on the market. UCITS and Moroccan legal entities represented 63% of traded volumes, while individual investors saw their transactions increase significantly. For example, purchases by individuals were multiplied by five in the second quarter compared to the same period in 2023.
What about foreign investments?
Foreign investors, on the other hand, showed a limited presence, representing only 6% of trades on the central market in the second quarter. Although their sales increased, their purchases fell slightly, illustrating a certain stagnation due to the maintenance of the Casablanca Stock Exchange in the "Frontier Market" status.
What challenges did the market encounter in 2024?
The main challenge remains the attractiveness of the market for new stock market listings. Despite the efforts made, few companies show interest in listing, preferring bank financing or fearing the transparency required by the public market.
What are your forecasts for 2025?
For 2025, the Casablanca Stock Exchange seems well positioned to continue its momentum. We anticipate that the MASI could reach 16,480 points, supported by solid fundamentals such as the drop in rates and the rise in profits. The organisation of the 2030 World Cup will also continue to play a key role, both at the psychological and fundamental level.
Which sectors or companies will be the most promising in 2025?
The theme of the 2030 World Cup remains central. Sectors linked to this event, such as construction, tourism, telecoms, transport, and services, are to be watched closely. Furthermore, the financial sector, with its recent changes in shareholders and its solid fundamentals, also offers good prospects.
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