Casablanca Stock Exchange: From Panic to FOMO, Investors Make a Leap

The first week of October proved challenging for investor psychology. Nervousness was palpable among both individual investors and fund managers, caught off guard by the extent of the unrest surrounding the protests. However, by the evening of October 2, a relative calm in the streets was enough to change market perceptions. By Friday morning, panic had given way to a sense of FOMO (Fear of Missing Out). Many investors rushed to take advantage of attractive entry points on several stocks after significant corrections in the previous days. This shift in sentiment occurred despite a largely overlooked stream of favorable macroeconomic and microeconomic news. Positive semi-annual reports from companies and encouraging signals regarding economic dynamics were overshadowed by the surge in social tensions. In early trading, the MASI index rose by 2.65%, driven by large-cap stocks, with over 30 million dirhams in trading volumes within the first moments. The previous day had already seen strong participation, with over 800 million dirhams in transactions. On Thursday, the index tested a critical support zone around 17,800 points before rebounding in the latter part of the session. If this momentum continues, the MASI could test the resistance level of 19,500 points, indicating a potential upside of over 5.5%. However, the index's trajectory remains closely tied to the developments of the protests. The approach of the weekend, often conducive to larger mobilizations, keeps a significant level of uncertainty regarding the sustainability of the rebound.