Stocks Market
Casablanca Stock Exchange Plunges 5.5% in Worst Week Since Middle East Conflict Erupted
The Casablanca Stock Exchange endured a brutal week of selling pressure, with the MASI index shedding 5.49% to close at 17,592 points — its sharpest weekly decline since the Middle East conflict began. Rising domestic bond yields, heavy mutual fund redemptions, and a toxic global backdrop of $100+ oil, Fed tightening, and geopolitical tensions converged to crush sentiment. Trading volumes surged to 624 million dirhams on Friday as the index broke key technical support at 18,100, now eyeing the 17,500-17,600 zone. All eyes turn to Bank Al-Maghrib's policy meeting on September 22 amid ongoing half-year earnings season.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
The Casablanca Stock Exchange closed a punishing week with the MASI index plummeting 5.49% to 17,592.46 points, marking its worst weekly performance since the outbreak of the Middle East conflict. The benchmark has now erased 6.65% year-to-date, while the more concentrated MASI 20 shows a staggering 13.69% annual decline.
A Perfect Storm of Domestic and Global Headwinds
The selloff was not driven by a single catalyst but by a convergence of negative forces:
- Rising bond yields: On the secondary market, the 5-year yield jumped over 15 basis points, the 10-year added 12 bps, and the 15-year rose 13 bps between September 9-16. Higher fixed-income returns improve bonds' relative appeal while simultaneously raising discount rates for equity valuations.
- Mutual fund liquidation: Friday saw heavy selling from OPCVMs (collective investment undertakings), amplifying pressure on an already fragile market after successive declines Monday through Wednesday.
- Global macro shock: Brent crude holding above $100/barrel amid persistent Middle East tensions and supply disruptions, combined with the Fed's 25 bps rate hike to a 3.75%-4% range, has reignited inflation fears and tightened global financial conditions.
Technical Damage and Volume Surge
The technical picture deteriorated sharply once the MASI pierced the 18,100 support level. The index is now testing the 17,500-17,600 zone, a critical area to watch in coming sessions. Trading volumes confirmed the intensity of the move: Friday's session alone recorded 624 million dirhams in turnover, versus 216 MDH on Wednesday and 516 MDH on Tuesday. Notably, Thursday's session was cancelled entirely due to a technical incident, with all transactions annulled.
Key Events Ahead: Bank Al-Maghrib and Earnings Season
Next week's calendar centers on the Bank Al-Maghrib Council meeting on Tuesday, September 22, where monetary policy decisions will be closely parsed for signals on domestic rate trajectory. Simultaneously, the half-year earnings season continues — several companies have posted solid results despite falling share prices, potentially setting the stage for more discerning stock-picking in a market that has become significantly more selective.