A look at Casablanca Stock Exchange top performers in 2023

Business bank, Valoris Securities, conducted a study on the profitability of companies listed on the Casablanca Stock Exchange, which showed banks and construction companies to be the most profitable sectors in 2023.

This stands in contrast to the struggles faced by food and energy companies, which were negatively impacted by rising raw material prices, inflation, and the war in Ukraine.

Overall, the market experienced a slowdown in growth compared to 2022.

The turnover of listed companies increased by 4.1% to 300.2 billion dirhams, down from the 14.5% growth observed in the previous year.

There were some positive signs, though, with 47 out of 74 listed companies reporting an increase in annual turnover. The total turnover for the first nine months of 2023 also showed some promise, growing by 5.3% to 218.3 billion dirhams.

The banking sector emerged as a key driver of growth for listed companies, with net banking income increasing by 13% to 81.16 billion dirhams.

Analysts attributed this growth to a combination of factors, including favorable commercial activity, development of market revenues, and the banking sector’s ability to manage risks all played a role.

Attijariwafa Bank group exemplified this success, achieving a 15.5% increase in net banking income to 29.9 billion dirhams.

Not all sectors fared as well, with some sectors negatively affected by external factors. Metals, energy, and food companies all experienced losses.

The mining industry saw the steepest decline, with a 17% drop. Energy companies also suffered, with a 10.4% decrease. The food sector fared slightly better but still experienced a 3% decline.

The study linked these declines to instability in commodity prices and ongoing geopolitical tensions.

Some sectors showed surprising resilience, including he distribution sector, for example, which managed to weather the storm of inflation and record a 10.4% growth.

The real estate recovery sector also showed positive signs, with a resurgence in production and a faster pace of project delivery leading to a 28.7% increase in revenue.