UCITS Funds Drive Casablanca Market Activity in Q1 2026

UCITS funds and Moroccan legal entities accounted for the majority of trading activity on the Casablanca Stock Exchange in the first quarter of 2026, according to the AMMC. Despite a decline in trading volumes and a drop in the main indices, activity remained driven by a marked increase in the number of orders and contracts.

The first quarter of 2026 confirms a reality that has become a defining feature of the Casablanca Stock Exchange: institutional investors continue to set the pace. According to the “Investor Profile” report published by the Moroccan Capital Market Authority (AMMC), Moroccan UCITS and legal entities alone accounted for 65.5% of the central equity market’s trading volume in the first three months of the year. This dominance occurs, however, in a less active market marked by a decline in the main indices.

A Quarter Under Pressure for the Indices:

The Casablanca Stock Exchange experienced a more turbulent first quarter of 2026. According to the AMMC (Moroccan Capital Market Authority), the total trading volume, including both the central market and block trading, reached 26.9 billion dirhams, compared to 38.5 billion dirhams in the fourth quarter of 2025 and 33.3 billion dirhams in the first quarter of 2025. The contraction is therefore significant, both on a quarterly and year-on-year basis. This decline in trading was accompanied by a drop in the indices.

The MASI index fell by 8.9% in the first three months of the year, while the MASI 20 index declined by 12.4%. Year-on-year, both indices also show respective decreases of 3.35% and 10.03%, according to data released by the AMMC (Moroccan Capital Market Authority). Market capitalization, however, stood at 963.03 billion dirhams at the end of March, up 4.08% compared to the first quarter of 2025.

The central market accounts for the bulk of trading

The central market remains the heart of stock market liquidity. It absorbed 98% of total trading for the quarter, with a volume of 26.3 billion dirhams. This level nevertheless reflects a decrease of 16.7% compared to the first quarter of 2025 and 15.3% compared to the fourth quarter of 2025.

The block trade market represented only 2% of trading, with 568.8 million dirhams, compared to 1.72 billion dirhams a year earlier. The monthly pattern shows a relatively strong start in January, with 8.54 billion dirhams traded on the central equity market, before a decline to 7.45 billion in February, then a rebound to 10.15 billion in March. This last month therefore accounted for a significant portion of the quarter’s activity.

UCITS funds in the forefront

On the equity segment of the central market, UCITS funds generated 38.4% of the quarterly trading volume. They outpaced Moroccan legal entities, which represented 27.2%, and Moroccan individuals, whose contribution reached 22.6%. Foreign legal entities accounted for 6.1%, transactions processed through the banking network 5.4%, while foreign individuals remained marginal at 0.3%.

Specifically, UCITS funds acted as net buyers, making 10.8 billion dirhams in purchases compared to 9.3 billion dirhams in sales. Compared to the first quarter of 2025, their purchases decreased by 26.8%, but their sales increased by 6.1%. This trend reflects a more selective approach, but one that remains central to market activity.

Moroccan companies were predominantly sellers

Conversely, Moroccan legal entities posted a net selling position. Their sales amounted to 7.9 billion dirhams, compared to 6.3 billion dirhams in purchases. The decline is evident on both sides of the order book: purchases fell by 10.2% compared to the first quarter of 2025, while sales decreased by 31.7%.

Moroccan individuals, the third largest player in the market, made 6.2 billion dirhams in purchases and 5.6 billion dirhams in sales. They thus emerged with a net buying position, despite a contraction in their volumes compared to last year. According to the AMMC (Moroccan Capital Market Authority), their purchases decreased by 19.8% and their sales by 29.5% year-on-year.

Foreign investors are returning to buying

The behavior of foreign investors also deserves attention. Foreign legal entities made 1.63 billion dirhams in purchases in the first quarter of 2026, representing a 70.2% increase compared to the same period in 2025. Their sales, however, amounted to 1.55 billion dirhams, a decrease of 7.5%.

Even though their overall share remains limited, this movement suggests a renewed, selective interest in certain listed stocks. Investors using the banking network, for their part, recorded 1.7 billion dirhams in sales and 1.2 billion dirhams in purchases. Unlike other categories, both of their flows increased year-on-year, with respective increases of 19.1% and 11.7%.

More Orders, More Contracts:

The decline in trading volumes does not signify a decrease in operational activity. On the contrary, the AMMC (Moroccan Capital Market Authority) notes a significant increase in the number of stock market orders on the central equity market. These reached 869,262 orders in the first quarter of 2026, up 59.2% compared to the first quarter of 2025 and 9.4% compared to the fourth quarter of 2025.

The number of contracts followed the same trend, rising from 282,947 contracts in the first quarter of 2025 to 416,399 contracts in the first quarter of 2026, representing an increase of 47.2%. In other words, the market saw more transactions, but with smaller unit amounts, indicating more fragmented activity.

A Market Dominated by UCITS Funds and Local Players:

The AMMC report finally confirms the predominant role of Moroccan investors, both institutional and individual, in the stock market dynamics. UCITS funds, Moroccan legal entities, and Moroccan individuals account for the bulk of the flows. Foreign investors remain present, but their contribution remains limited.

This first quarter thus paints a picture of a Casablanca market that is more active in terms of the number of orders, but less deep in terms of volume. Institutional investors continue to structure the market, individuals maintain a significant presence, and foreign investors are cautiously returning to buying. In a declining market, this realignment of flows will be closely monitored in the second quarter.

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(Featured image by Yan Krukau via Pexels)

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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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