Casablanca Stock Exchange Matures as Individual Investors Rise Amid Institutional Dominance

The fourth quarter of 2024 marks a turning point in the investor profile of the Casablanca Stock Exchange. While institutional investors continue to dominate the market, a new and significant trend is emerging: the rise of Moroccan individual investors. This development, coupled with substantial growth in trading volumes and sharply rising liquidity, illustrates a renewed level of maturity in the stock market.

Confidence is returning to the Casablanca Stock Exchange, as evidenced by the growing appetite of investors who have been returning to the stock market in force since 2024. The first quarter of 2025 confirmed this trend. The Casablanca Stock Exchange maintained its upward momentum, with a total trading volume reaching 33.48 billion dirhams, including 21.55 billion on the central market.

The MASI index recorded an increase of more than 20%

This momentum was supported by the increase in the contribution of institutional investors and the strong return of Moroccan individuals. The two represent 62.4% and 25.8% of equity transactions, respectively. These developments are in line with the achievements of 2024. The stock market showed surprising resilience at the end of the year, but it is above all the evolution of the investor profile that deserves particular attention.

With a sharp increase in transaction volumes and a renewal of the players present, this quarter marked a turning point in the market structure. The dominance of institutional investors and legal entities continues to mark the market, but significant changes were observed in the participation of individual investors. Far from being a mere passing phenomenon, this transformation could redefine the investment landscape in Morocco in the years to come.

An institutional stronghold, legal entities at the helm of the market. The figures for the fourth quarter of 2024 published by the Moroccan Capital Market Authority (AMMC) are unequivocal. Institutional investors, primarily Moroccan legal entities and collective investment schemes (UCITS), dominate the market. These two categories accounted for 68% of the total trading volume on the Casablanca Stock Exchange, a share that demonstrates the importance of these players in maintaining market balance.

In terms of amounts, Moroccan legal entities achieved a total volume of 7.8 billion dirhams in purchases and sales, marking an increase of 59.4% compared to the fourth quarter of 2023. This dynamic is all the more interesting as it reflects the growing confidence of institutional players in the robustness of the market.

A Casablanca-based analyst notes that “legal entities continue to be the main drivers of the market, due to their ability to take large positions. The data shows strong involvement in both purchases and sales, which demonstrates active portfolio management.”

Furthermore, UCITS, with their purchases up 47.8%, confirm their essential role in market liquidity, operating mainly as net buyers.

The growing appetite of individual investors, a revolution underway

Although institutional investors dominate the Casablanca Stock Exchange, it is impossible not to notice the rise of Moroccan individuals. The latter saw their purchasing volume multiply by 2.6 compared to 2023, reaching a total of 4.3 billion dirhams on the Casablanca Stock Exchange.

This development is all the more striking given that it comes at a time when retail participation has historically been more modest. The increase in sales by individual investors, which reached MAD 4.8 billion, also marks a change in the way small investors approach the market. Analysts agree that this increase in individual participation is a sign of the maturation of the Moroccan stock market.

“What we’re seeing is a democratization of investing. Individual investors are becoming more aware of the opportunities the stock market offers, and there’s a real desire to diversify their portfolios,” explains a stock market analyst.

This trend is supported by initiatives aimed at simplifying access to the Casablanca Stock Exchange and improving financial culture in Morocco.

A relatively modest presence of foreign investors on the Casablanca Stock Exchange

The profile of foreign investors, meanwhile, remains discreet. With only 4.5% of total trading volume, foreign investors did not have a major impact on the Moroccan stock market in the fourth quarter of 2024.

This trend is part of a broader context in which international investors are becoming increasingly cautious, particularly due to geopolitical uncertainties and global economic tensions. Sales by foreign investors increased by 41.9% compared to the previous quarter, but their purchases decreased by 0.6%.

“The Moroccan stock market remains relatively closed to foreign investors. However, there are underexploited opportunities in strategic sectors such as energy and infrastructure that could attract more international capital in the near future,” comments a financial analyst.

That said, Morocco continues to play a leading role in the region and is expected to see an increase in foreign participation with efforts being made to strengthen the competitiveness and visibility of its market internationally.

Strongly growing liquidity

The volume of stock market orders is another indicator of market activity, and the fourth quarter of 2024 marked a significant advance with an increase of 81.1% compared to the previous year, reaching 408,646 orders.

This strong growth reflects increased liquidity on the central market, which accounted for 51% of total trading volume. In comparison, the block market accounted for 49% of trading, but with a slightly lower volume (19.8 billion dirhams). Analysts agree that this growth in the number of orders is a sign that investors, both institutional and individual, are becoming more active on the Casablanca Stock Exchange.

“The sharp increase in orders reflects growing confidence in the market. More investors want to actively participate, which strengthens liquidity and promotes market efficiency,” explains one trader.

A maturing market and numerous opportunities to seize

The fourth quarter of 2024 showed that the Casablanca Stock Exchange is undergoing a phase of transformation. Institutional investors continue to dominate, but Moroccan individuals are taking an increasingly important role in trading, contributing to the diversification of investment profiles.

However, the relatively modest share of foreign investors shows that there are still challenges to be overcome in making the Moroccan market more attractive internationally.

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(Featured image by Nicholas Cappello via Unsplash)

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First published in LES ECO.ma. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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