The Moroccan Capital Market Authority has recently published the 11th issue of its "Capital Markets Review", providing insights and analysis on the significant economic and financial events observed during the second and third quarters of 2024.
This latest edition sheds light on key indicators and statistics across various sectors of the market, showcasing how the Moroccan economy is adapting and responding to various challenges.
One of the most notable trends highlighted is the strong performance of the Moroccan stock exchange, which reported substantial growth over the past year. By the end of September 2024, stock market capitalization stood at approximately 742 billion dirhams, reflecting an impressive increase of 18.5% compared to December 2023, and 21.7% on a year-over-year basis.
According to the Moroccan Capital Market Authority, "The key indicators of the market showed an upward trend during the first nine months of 2024," underscoring the positive turn of events for investors and market participants.
The report articulates how accelerating economic activities, particularly outside the agricultural sector, contributed to this impressive performance, with inflation rates decreasing compared to the end of 2023. This has led to improved confidence among businesses and investors.
The report also presents detailed figures pertaining to collective investment vehicles, which experienced significant growth. By the end of September 2024, the net assets of these entities reached 636.5 billion dirhams, marking increases of 13.7% since the start of the year and 14.2% compared to September 2023.
Real estate investment vehicles also showed remarkable resilience, achieving growth rates of 28.4% annually as of September 2024, amounting to around 97 billion dirhams. These trends signal strong demand within the property market, driven by low interest rates and other favorable economic conditions.
The report also sheds light on the activities of the primary and secondary markets, indicating bond borrowings totaling 3.5 billion dirhams and private placements of bonds valued at 6.4 billion dirhams. Capital increases reached 1.77 billion dirhams, with share buybacks totaling 3.8 billion dirhams.
On the secondary market, trading volumes on the Casablanca Stock Exchange registered transactions worth 49.8 billion dirhams during the first three quarters of 2024, spiking by 106.6% compared to the same period last year.
A noteworthy highlight of this report is the impending launch of the derivatives market for financial instruments, which is seen as a significant step forward for the Moroccan financial structure. The authorities have stated, "The launch of the derivatives market reflects the dynamics of transforming and modernizing the Moroccan financial infrastructure," showcasing how it aims to improve liquidity and financial innovation.
The establishment of this market is part of broader efforts to create modern financial tools aimed at mitigating risks for various stakeholders including businesses, banks, and institutional investors. The foundational components for the derivatives market are nearing completion, with legislative frameworks being set up for smooth operation.
With the enhancement of financial structures, the authority aims to deliver tools for financial hedging, which will be instrumental for market participants. Overall, the findings from the report illuminate the Moroccan market's potential and the pathways for adaptation and modernization.
Looking forward, these developments contribute to investor confidence and the overall prospects for economic growth within Morocco. With the framework set for the derivatives market and other structural updates, the Moroccan financial market is poised to expand significantly.
