Maroc Telecom: solid company, but why is the stock being ignored?

This update focuses on Maroc Telecom stock. Maroc Telecom has reported solid revenues and profitability, yet its share price on the Casablanca Stock Exchange has fallen by 13.5% since January, raising questions for Moroccans living abroad who invest in the Moroccan market or plan to channel part of their savings back home.

Maroc Telecom stock: strong fundamentals, weak price

According to the figures released, the group’s half-year results remain robust. Revenue is growing, domestic operations in Morocco are back to growth, and African subsidiaries continue to perform well. Profitability, a key indicator for shareholders, remains at a comfortable level.

Despite this, the stock has lost ground on the market. At the close of trading on 28 September, Maroc Telecom shares were down 13.5% since the start of the year, trading around 94.3 dirhams. This decline weighs on the portfolios of small investors who already hold the stock, including members of the Moroccan community abroad who use the Casablanca Stock Exchange to diversify their assets.

Why are investors turning away from the share?

Market observers point to a shift by investors towards sectors seen as more promising in the short term. In other words, Maroc Telecom remains a solid company, but some fund managers now favour other stocks that might offer faster growth.

This move is not driven by a collapse in results, but by a sector rotation. In this context, Maroc Telecom stock is often viewed as a defensive asset: less volatile than many others, cash-generating, but temporarily sidelined by part of the market.

For Moroccans based abroad and following the Casablanca Stock Exchange from a distance, this situation highlights an important point: even so-called “income stocks” can go through extended periods of price weakness, without any major deterioration in their fundamentals.

Key questions for Moroccans investing from abroad

Many Moroccans abroad hold Moroccan equities via a local securities account or through discretionary portfolio management. For them, Maroc Telecom’s recent performance raises several questions:

• Should they hold the stock and rely on the stability of the company’s results?
• Use current levels to gradually increase their position?
• Or reallocate part of their savings to other sectors?

The answer depends on each investor’s risk profile, investment horizon and personal situation. Moroccans abroad who are preparing a return, or planning to buy property in Morocco, may prioritise regular income and lower volatility. In that case, a defensive stock like Maroc Telecom can still fit into a diversified portfolio, provided they seek tailored advice from a professional.

For those with a longer time horizon and higher risk tolerance, the current drop in the Maroc Telecom stock price may also be seen as an opportunity to build a position gradually in a company considered solid but temporarily under pressure in the market.

Linking stock investments to real-life projects in Morocco

Beyond the Maroc Telecom case, this episode is a reminder that any investment on the stock market should be linked to concrete projects in Morocco: preparing a return, funding children’s education, buying a home or starting a business.

Moroccans abroad who want to strengthen their financial ties with their home country need clear objectives before choosing a stock or a sector. Telecoms, listed real estate, banks and industrials each expose investors to different levels and types of risk.

Before making any decision, it is important to check banking fees related to securities accounts managed from abroad, the tax rules applicable in both your country of residence and Morocco, and the conditions for transferring funds through official channels.

To go further, you can consult Canal212’s guide on key administrative steps for Moroccans abroad, and cross-check information with official institutions, particularly for travel and logistics. For air transport, regularly updated information is available on the Royal Air Maroc website: royalairmaroc.com.

In a changing market, the this case case finally underlines a simple rule for Moroccans worldwide: monitor your investments in Morocco regularly, link them to clear objectives, and seek professional advice before taking major decisions.

For more context, readers can follow Canal212 news for Moroccans abroad.