Market Recovery and Technical Levels
The anticipated market rebound has finally materialized, with stocks finding support at key technical levels identified by traders. This movement has allowed the MASI index to recover a portion of the losses incurred in the previous week.
Crucially, the resurgence of buying activity has prevented the index from slipping below the psychological threshold of 18,000 points, a level that had begun to attract attention and was being closely monitored by some operators.
Weekly Market Dynamics
The weekly performance reflects this adjustment phase. After three sessions of stagnation without a clear direction, the market experienced a significant rebound on Thursday, although it concluded the week with a slight decline.
This sequence has allowed the index to slightly reduce its annual losses, which now stand at -1.45%. In a market where both bullish and bearish narratives can be supported, the balance continues to tilt towards the side with the most participants ready to be caught off guard.
Selective Market Progression
As the year progresses, a scenario of more selective market advancement is becoming clearer. Analysts at CFG Bank forecast an approximate 8% growth for the fiscal year, accompanied by a convergence of multiples towards their historical averages.
Consequently, the momentum of stock prices is expected to rely more on profit growth rather than valuation expansion, particularly in a less favorable interest rate environment.
Mining Sector Performance
In terms of individual stocks, mining companies have once again attracted attention, consistent with their reputation for emotional volatility. Following a sharp decline the previous week, this sector has regained some ground.
For instance, Minière Touissit surged by 45.71% to reach 3,060 MAD, while SMI increased by 10.36% to 5,849 MAD. These fluctuations highlight the sector's tendency to operate under its own logic, often decoupled from the broader market.
Uneven Buying Activity
However, the buying momentum has not been uniformly distributed. As observed since the beginning of the year, the progression remains selective, with certain market capitalizations drawing attention while others continue to struggle to emerge from their lethargy.
Trading Volume and Key Players
On the central market, trading volume exceeded 1.63 billion dirhams over the five sessions, corresponding to a daily average of 328 million MAD. The activity was primarily driven by Attijariwafa Bank (160 million MAD, 9.79%), Minière Touissit (144 million MAD, 8.77%), and Risma (132 million MAD, 8.05%).
Upcoming Earnings Reports
Furthermore, the season for annual and quarterly earnings reports is gradually accelerating. This week, Maroc Telecom, the third-largest market capitalization, released results indicating profitability close to 7 billion dirhams.
This performance includes non-recurring elements related to the agreement reached with WANA Corporate regarding unbundling. The group also announced a standard dividend of 4 MAD.
The market is now entering a denser phase in terms of earnings publications. Within the next two weeks, the quarterly results session will conclude, and during this period, the figures are expected to gradually take precedence over the technical considerations that have dominated the start of the year.
