Positive Outlook for Construction and Real Estate Sectors
M.S.IN has set its sights on a rebound in the construction and real estate sectors during the second half of the year. Naoufal Aouragh, the head of Analysis and Research, shared insights during an interview with Marchés et Stratégies on Boursenews, expressing a bullish scenario for profit growth by 2026. This optimism is particularly bolstered by ongoing investments and the continuation of major infrastructure projects that are expected to drive economic performance.
In the construction sector, the upcoming financial results from companies such as TGCC, SGTM, and Jet Contractors are eagerly anticipated. During the first half of the year, both TGCC and SGTM reported profit increases, although these were below M.S.IN's expectations. Conversely, Jet Contractors experienced a decline in profits. Aouragh forecasts a stronger performance in the latter half of the year for both the construction and real estate sectors, though he refrained from pinpointing any specific real estate stock.
Technological Stocks Show Resilience
Meanwhile, the technology sector is entering the second half of the year on a more favorable note. HPS has returned to profitability, and companies such as M2M, Microdata, S2M, Disway, and Disty Technologies have posted impressive results. Aouragh highlights the sector's positive trajectory as a key contributor to expected profit growth, alongside the continuous progress seen in banking institutions. Additionally, for Managem, which has exceeded expectations with its financial results, monitoring metal prices will be crucial. M.S.IN aims to differentiate in its updated recommendations between companies driven by structural growth factors and those primarily benefiting from favorable economic conditions.
However, the anticipated profit growth occurs in a market undergoing correction, with the MASI index down approximately 9% since the start of the year. Aouragh characterizes 2026 as a year of consolidation following three years of growth. The increase in results alone is insufficient to support stock prices amidst rising bond yields, both locally and internationally, which weigh on stock valuations. Furthermore, escalating energy prices and tensions in the Middle East continue to stoke inflationary fears.
As the year progresses, the analyst will closely monitor interest rates, commodity prices, and companies' abilities to maintain their profit margins. The semi-annual results align with M.S.IN's annual scenario, and the updating of research notes will allow for adjustments in recommendations tailored to the specific outlook for each stock.
As reported by boursenews.ma.
