DR ‹ › The Casablanca Stock Exchange recorded two sharp declines following the escalation of the conflict in the Middle East involving Israel, the United States, and Iran. The uncertainty triggered by the exchange of strikes heightened investor caution, even thousands of kilometers away from the conflict zone. On Monday, March 2, the MASI index fell by 4.21%, dropping to around 17,377 points. Total market capitalization slipped below 1 trillion dirhams, reflecting broad market anxiety and weaker trading across several key sectors, particularly banking and industry. The downward trend intensified on Tuesday, March 3, with the MASI plunging a further 5.63%, erasing the gains accumulated over the past year. Nearly all listed stocks were affected, though a handful of companies linked to raw materials managed to limit losses. The sell-off highlights how quickly international crises can weigh on local portfolios, even in the absence of direct exposure to the conflict. Globally, European and U.S. markets also posted losses, pressured by rising energy prices and growing fears of an economic slowdown. The surge in oil and gas prices, fueled in part by concerns over potential disruptions to transit through the Strait of Hormuz, increased investor risk aversion and amplified market volatility. For market participants in Casablanca, these two sessions underscore that, while rooted in the national economy, the local exchange remains sensitive to geopolitical shocks. The coming days will be crucial in assessing the market's ability to absorb this external pressure.
