Moroccan Capital Market Authority (AMMC), the stock market regulator, has issued a communiqué capping the maximum variation thresholds for the value of shares on the Casablanca stock exchange. Depending on the mode of transaction or the nature of the security (shares or bonds), these prices can no longer vary by more than 2% or 4%.

Due to the fear that came with the coronavirus pandemic, many Moroccan investors have decided to divest their shares. According to Le Boursier, “the Undertakings for Collective Investment in Transferable Securities (UCITS) are obliged to sell their shares since there are individuals who are engaged in redeem operations. They are obliged to sell at any price in order to have liquidity to meet their commitments to their customers.”

This same scenario is observed on other markets worldwide. Across global stock markets, equities are plummeting as investors expect the economy to slow significantly, and yields on bonds considered safer are falling due to strong demand for lower-risk assets. Over the last month, only 6 companies out of the 73 present on the main compartment of the Casablanca Stock Exchange recorded rising shares.

The market's largest capitalizations including Maroc Telecom, Attijariwafa Bank, Banque Centrale Populaire and Lafarge Holcim Maroc are on a sharp downward trend. With a 27% decline, BMCE Bank of Africa declined the most in the banking sector. Crédit du Maroc is showing resilience with a decline of only 8% in its value over the period reviewed. Between March 2 and 17, 2020, stock market investors in Morocco lost MAD143.5 billion in value (about €13.5 billion).

Idriss Linge