Moroccan Stock Market Slumps as Investors Fear Wider Regulatory Crackdown

The stock market is currently experiencing a decline. The Masi, which fell 2.16% in February, lost another 3 percentage points after four sessions in March, according to L’Économiste.

This downward trend is explained by the fear of investors and the consequences of the sanction imposed on Maroc Telecom for anti-competitive practices. Investors fear "a multiplication of investigations in other sectors, particularly banks and cement companies".

Since the announcement of the sanction, the IAM share has fallen by 7.6%, which weighs on the behavior of the Masi. Especially since the stock represents more than 20% of the market capitalization.

The coronavirus, which already threatens Morocco with economic recession, and its impact on listed companies, are fueling investors’ concerns. Marsa Maroc is among the most affected stocks, with a stock market price that fell 4% in February.