Home > Economy > Maroc Telecom Shares Plummet 7.52% After Record Fine Announcement
Maroc Telecom Shares Plummet 7.52% After Record Fine Announcement
Wednesday 5 February 2020, by
The value of Itissalat Al Maghrib (IAM) or the Maroc Telecom share recorded a dizzying drop of 7.52% in a single day on Monday, February 3, 2020. The reason is the record fine that the company has been ordered to pay.
7.52%. According to data collected by the Ecofin Agency, this percentage represents the largest single-day decline that Maroc Telecom, the leading capitalization on the Casablanca Stock Exchange, has ever experienced since July 23, 2013, when its share fell by 9.3%.
In total, nearly a million shares were sold on Monday, February 3, 2020. This is a record volume of transactions recorded in a single trading day since July 2019. However, this is the first time that such a trading volume has been associated with a record decline in the company’s stock market value, we note.
This drop in performance is the result of the 3.3 billion dirham fine that the National Telecommunications Regulatory Agency (ANRT) has ordered Maroc Telecom to pay for "constituting an abuse of a dominant position".
The ANRT states that it has made this decision following a referral against IAM for "anti-competitive practices" related to the implementation of unbundling. After deliberations, it was found that Maroc Telecom’s practices constitute "an abuse of a dominant position".