The stock performance of Maroc Telecom saw a notable uptick on Wednesday following the decision by the company’s supervisory board to appoint Mohamed Benchaaboun as the new Chairman of the Board, replacing Abdeslam Ahizoune.
On the Casablanca Stock Exchange, the stock closed the morning session with a strong rise of 5.80%, moving from 109.55 MAD per share to 115.90 MAD, and increase that reflects a positive market response to the leadership change at the helm of the telecom giant.
A professional source from the Casablanca Stock Exchange highlighted the strong market reaction to the leadership shift, particularly after Azzedine’s departure.
His long tenure at the company had closely linked his name to its image in both domestic and African markets.
Despite the surge, the same source pointed out that the stock’s recent rise is somewhat exaggerated, as its true market value should not exceed 104 MAD per share.
Market participants, the source added, are often influenced by rumors and speculation surrounding the new management’s decisions, particularly with respect to anticipated changes in the telecom infrastructure and future strategic moves, following the old adage: “The stock market buys rumors and sells news.”
Abdeslam Ahizoune was dismissed today from his position as chairman of the board of directors of Maroc Telecom, after a ruling by the Casablanca Court of Appeal imposed a 6.4 billion dirhams fine on the company in favor of its competitor Wana.
Ahizoune’s leadership was increasingly questioned as the company’s performance suffered in both local and African markets, prompting frustration from the UAE-based “E&” Group (formerly Etisalat), which owns 53% of Maroc Telecom.
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