Moroccan equities finished slightly in the red on Thursday, as selling pressure in Utilities, Banking and Mining weighed on the close in Casablanca. The Moroccan All Shares index ended the session down 0.10%.
The session's strongest performers on the Moroccan All Shares were Involys (CSE:INV), which climbed 7.59% - an increase of 11.00 points to close at 156.00; SMI (CSE:SMI), which added 5.99% or 551.00 points to finish at 9,750.00; and Residences Dar Saada SA (CSE:RDS), up 5.63% or 9.70 points to 181.90 by the close.
On the downside, CTM (CSE:CTM) was the heaviest decliner among the main movers, slipping 2.32% or 21.00 points to end at 886.00. Hps (CSE:HPS) dropped 2.14% or 14.00 points to 641.00, while Bmce Bank (CSE:BOA) was off 1.90% or 4.00 points to finish at 206.00.
Breadth on the Casablanca Stock Exchange was narrowly negative, with 27 issues falling, 26 advancing and 7 remaining unchanged.
Notably, SMI (CSE:SMI) recorded an all-time high during the session, rising 5.99% or 551.00 points to reach 9,750.00.
Commodities and currencies
In commodity markets, crude oil for June delivery declined 3.63% or 3.45 to trade at $91.63 a barrel. Brent oil for July delivery fell 3.52% or 3.56 to $97.71 a barrel. Precious metals moved in the opposite direction, with the June Gold Futures contract gaining 1.61% or 75.44 to trade at $4,769.74 a troy ounce.
On the currency front, the euro fell versus the Moroccan dirham, with EUR/MAD down 0.36% to 10.78. The US dollar also weakened against the dirham, as USD/MAD fell 0.66% to 9.13.
The US Dollar Index Futures closed lower by 0.18% at 97.70.
Key takeaways
- The Moroccan All Shares finished down 0.10% as sector losses outweighed gains.
- Involys, SMI and Residences Dar Saada led gains; CTM, Hps and Bmce Bank posted the largest declines among named stocks.
- SMI reached a record high, while energy futures fell and gold futures rose; the dirham strengthened versus both the euro and the US dollar.
Market context and flows
Trading breadth was balanced but tilted toward decliners, with 27 falling issues versus 26 advancers and seven unchanged. Sector performance was mixed: Utilities, Banking and Mining were singled out as sources of weakness, while several individual names posted strong percentage gains.
Risks and uncertainties
- Sector concentration risk - Weakness in Utilities, Banking and Mining contributed to the overall market decline, indicating that further sector-specific moves could influence the broader index.
- Commodity price volatility - The drop in crude and Brent futures could pose earnings and cash-flow uncertainty for energy-linked companies and related suppliers.
- Currency movement - Appreciation of the Moroccan dirham against the euro and US dollar could affect exporters and dollar-denominated earnings for listed firms.
Data points cited in this report reflect market levels at the close of trade on Thursday and are presented as reported.