At the end of the 3rd quarter of 2023, the 67 listed companies having released their quarterly results showed a modest growth in their revenue of +4.8% to MAD 74.4 Bn. This continued slowdown in market’s revenue evolution since Q2-23, is justified by the easing of inflationary tensions combined with the weak dynamism of domestic Demand.
Overall, the operational achievements of listed companies seem below investors’ expectations. In fact, the Equity market recorded a decline of -2.0%(1) since the start of the 3rd quarter results release period in November 2023. In our opinion, the achievements of listed companies didn't allow to mitigate the bearish trend of the Equity market within an unfavorable international and geopolitical context.
Upon the analysis of listed companies’ activity evolution, we note the following points:
- Revenue’s growth in Q3-23 is mainly driven by the banking sector, whose aggregate NBI increased by +21.7% at the end of the same period. Excluding Banks, the market’s cumulative revenue recorded a decline of -0.5% to MAD 54 Bn;
- During the first nine months of 2023, the stock market’s revenue recorded an increase of +5.3% to MAD 225 Bn. This is due to the recovery in the Real Estate (+30.7%), Retail (+15.8%) and Banking (+15.2%) sectors. However, the Mining (-13.9%) and Energy (-9.4%) sectors suf-fered from prices’ drop of base metals and energy products such as Brent, Coal and Gas ;
- The banking sector continues to stand out through the growth resilience of its NBI’s different components. Despite the increase in the cost of risk of almost +20.0%, the earning power of the banking sector crossed a new threshold, i.e. an aggregate NIGS of MAD 12.7 Bn.
