EXECUTIVE SUMMARY
MOROCCAN STOCK MARKET, TOWARD A NEW PARADIGM IN 2023?
In this first edition of the AGR House View, we looked at recent developments within the Moroccan stock
market as well as the signals which would argue in favor of a new paradigm starting from 2023.
In a context where risk aversion is becoming more and more prevalent, we share a number of insights,
convictions and recommendations which will help you better grasp the stock market in the coming
months.
If we look back over the last three years, we will quickly realize that the least likely scenarios are those which
have finally materialized. We have experienced the 1st pandemic in 100 years, we have witnessed the 1st invasion in Europe in 75 years, we are experiencing the highest inflation in 40 years and finally, we are feeling for the 1st time climate change effects in our daily lives.
These examples clearly show that "volatility" and "uncertainty" are becoming structural components with
which investors should now coexist. Particularly for Morocco, we believe that the intersection of geopolitical
tensions, inflation sustainability and the upward turn in bonds rates would herald a new paradigm in the stock
market.
Concretely, it would be the end of a decade marked by a great tolerance toward high valuation levels of stocks
and the start of a new era where the return to fundamentals would take over. Through this strategic letter, we
will present the main arguments which support this scenario as well as our recommendations for the
construction of medium term Equity portfolios.
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