Equities: Some S-T Downside But Positive Fundamentals

March 2008 | Market Strategy

Our positive view on the Casablanca bourse is playing out, as demonstrated by its rapid and robust recovery from January's regional equity correction. The benchmark Morocco All Share Index (MASI) is currently trading at 14,480, compared with less than 13,400 in late January, and 12,450 at the end of 2007. Given the index's strong performance, a short term move up to 15,000 is certainly not unrealistic. However, looking at the bourse over the longer term, trendline support is around 13,500, making the MASI look slightly overbought and suggesting that there is room for a further correction moving forward.

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