Casablanca Stock Exchange: When the Digital Crowd Moves Markets

The Casablanca Stock Exchange has always served as more than just an economic barometer; it mirrors collective emotions. This phenomenon has been particularly amplified in recent years through screens and discussion groups. Social media platforms such as WhatsApp, Telegram, LinkedIn, and sometimes X, have created a virtual trading floor, disseminating information, shaping expectations, and fostering fleeting certainties. They also introduce volatility and liquidity into the market. A survey conducted by our colleague Nissrine EL MARINI among 93 respondents paints a picture of a young Moroccan investor, typically holding a higher education degree and being digitally active. Seventy percent belong to the 25-44 age group, 65% are employed, and 84.9% hold a Bac+4/5 degree or higher. Notably, 80.6% have previously invested in the Casablanca Stock Exchange, and 96% have made at least one transaction in the past twelve months. This profile indicates a well-informed presence in the market, though not always rational: 72% of participants express confidence in their investment choices, 57% claim to withstand daily price fluctuations, yet 41% still prefer a sure gain over a risky one. The habits of information consumption confirm a structural shift. Over 80% of respondents regularly consult economic websites and official announcements, but social media has emerged as an essential relay. WhatsApp and Telegram groups, along with specialized forums, are cited by 56% as sources used "often" or "very often." LinkedIn follows at 38.7%, while mainstream platforms like YouTube (29%), X/Twitter (16%), and Facebook (12%) remain peripheral. These digital spaces function as echo chambers where information circulates, transforms, and intensifies. Reactions ensue: hasty sales, reduced positions, and strategic delays. News about a stock or a rumor can trigger a psychological frenzy in the market, with collective behavior becoming almost organic, reflecting alternating hope and fear. Discussions on WhatsApp, Telegram, or stock forums play a crucial role in disseminating signals and opinions. Several responses indicate that these spaces foster a behavioral contagion effect, where others' decisions guide individual choices. This mimetic behavior, observed in over half of the testimonies, contributes to accentuating short-term fluctuations and diminishing individual rationality. The fear of future losses drives investors to sell quickly, often at the expense of rational reasoning. This reflex is also evident in other responses such as "I reduced my position," "I hesitated," or "I preferred to sell quickly." These phrases reflect a defensive management approach in the face of perceived volatility. Some investors actively seize market announcements for short-term operations, demonstrating a short-term bias encouraged by the immediate availability of information and the desire to capitalize on rapid fluctuations. Here, the investor behaves like a reactive trader, constantly adjusting their position to the flow of news. Opinions on the regulatory role of the AMMC are generally favorable towards a gradual intervention in response to the growing influence of social media. For 34.8% of respondents, this intervention should be moderate, while 22.8% believe it should be significant, and 10.9% desire a strong action. When it comes to the nature of this intervention, participants prioritize financial education (33%), followed by combating rumors and manipulations (28.6%), and monitoring manipulations via social media (24.2%). Ultimately, 77% of respondents believe such intervention could reduce, at least partially, the excessive volatility linked to social media. These perceptions reflect an expectation for balanced regulation that combines prevention, education, and deterrence, rather than repressive oversight. For some respondents, this hyperconnectivity has its merits: it enhances access to information, democratizes stock market culture, and allows everyone to participate. In this landscape, two figures emerge. On one side is the experienced investor, capable of filtering out noise and placing each piece of news within a long-term perspective. On the other side is the connected novice, more susceptible to rumors, whose decisions reflect social perception rather than economic analysis. These observations call for a new form of financial education: teaching not only ratios and balance sheets but also emotional management, critical information analysis, and vigilance against the amplified echoes of the web. Nissrine EL MARINI