Sanguine Long Term As MASI Corrects

The sharp correction in the Casablanca Stock Exchange (MASI) since May 6, 13.7% drop in three days - and currently trading at 10,975.78 - was not totally unexpected. It reflects a technical adjustment than a change in underlying fundamentals, in our view. Indeed, despite our overall long term bullish view on the MASI, we have for some time warned that the steep gains seen since the beginning of 2006 were not sustainable (see January 31, Market Strategy - Surging MASI Requires Caution). Between January 2006 and May, the MASI gained 113.7%, reaching an all time high of 12,723.23 on May

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