Capital Markets
From The Report: Morocco 2015
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After several years of decline due to liquidity shortages, a high current account deficit and reduced export demand from Europe, Morocco’s bourse is growing again, with its market capitalisation rising significantly in 2014 and early 2015. Trading is concentrated in a small number of companies and investors – the 10-most-traded shares made up three-quarters of transactions in 2014, carried out mostly by institutional investors. Faced with a slim listings pipeline and low levels of secondary trading in recent years, market authorities are working on the launch of a range of reforms and new products designed to reinvigorate capital markets activity at a time when liquidity is returning to the wider economy.

This chapter contains an interview with Karim Hajji, CEO, Casablanca Stock Exchange; and a viewpoint from Younes Benjelloun, Partner and CEO, CFG Group.

Articles from this Chapter

Overview

Bourse growing again in Morocco
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The Casablanca Stock Exchange (CSE) has faced both a slim listings pipeline and low levels of secondary trading in recent years. However, market authorities are working on the launch of a range of reforms and new products that they hope will reinvigorate activity on the exchange, at a time when liquidity is also returning to the wider economy and at least two initial public offerings (IPOs) look set to go ahead in 2015. In 2014 growth returned to the market for the first time in several years and…

Analysis

Greater access to finance in Morocco
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Until recently, investment opportunities on the Casablanca Stock Exchange (CSE) were limited to securities on the equity and bond markets, both of which were dominated by major Moroccan corporates, or investing in mutual funds based on such securities. However this is set to change, with the CSE and market authorities working in recent years on the launch of a wide range of new products, services and exchanges. Small Listings Prominent among these are a new board listing small and medium-sized…

Interview

Karim Hajji, CEO, Casablanca Stock Exchange: Interview
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Interview: Karim Hajji What steps is the Casablanca Stock Exchange (CSE) taking in order to encourage more initial public offerings (IPOs) by small firms? KARIM HAJJI: To encourage listings, we meet with around 200 companies each year across all sectors in the major cities of the country. Furthermore, through our partnership with the Moroccan Business Association we also meet with small and medium-sized enterprises (SMEs) in Tangiers, Meknès, Rabat and Agadir. In addition, we have created some…

Viewpoint

Younes Benjelloun, Partner and CEO, CFG Group: Viewpoint
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The issue with savings in Morocco is not that they are weak but that they are not necessarily well oriented. Most savings go to traditional banking products, largely due to a lack of awareness. People are not familiar with saving products. Although we have seen a jump in undertakings for the collective investment of transferable securities (UCITS) in 2015, with more than Dh300bn (€32.64bn) invested, the largest clients are institutionals, such as pension funds. When people have savings…

Analysis

Attijariwafa Bank: Banking
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Attijariwafa Bank is the leading bank in Morocco in terms of outstanding loans, with a 26.1% market share, and the number two bank in terms of collected deposits, with 25.1% of the market as of December 2014. The bank operates 3265 branches in Morocco. The group also conducts business outside Morocco, having begun a regional expansion in 2005. Attijariwafa is now positioned in Tunisia, which comprises 5.4% of the group’s consolidated net income, and in nine French-speaking sub-Saharan countries, which comprise 9.7% of the group’s consolidated net income. The bank is a universal bank operating in all banking business segments: retail banking,…

Analysis

Auto Hall: Vehicles and industrial equipment
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Founded in 1920 and floated on the Casablanca Stock Exchange since 1941, Auto Hall is one of the leading Moroccan operators in the automotive equipments imports and distribution sector. The group operates in five main business segments: 1) passenger cars, where the company distributes the Ford and Mitsubishi brands and where it also operates as an agent retailer of Fiat cars in some regions of Morocco with a market share of 11%; 2) light commercial vehicles, where the company distributes Ford, Mitsubishi and Fiat cars with an estimated market share of 26%; 3) industrial vehicles, where Auto Hall is the exclusive seller of the Fuso and Ford Trucks…

Analysis

Auto Hall: Vehicles and industrial equipment
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Founded in 1920 and floated on the Casablanca Stock Exchange since 1941, Auto Hall is one of the leading Moroccan operators in the automotive equipments imports and distribution sector. The group operates in five main business segments: 1) passenger cars, where the company distributes the Ford and Mitsubishi brands and where it also operates as an agent retailer of Fiat cars in some regions of Morocco with a market share of 11%; 2) light commercial vehicles, where the company distributes Ford, Mitsubishi and Fiat cars with an estimated market share of 26%; 3) industrial vehicles, where Auto Hall is the exclusive seller of the Fuso and Ford Trucks…

Analysis

Cosumar: Fast-moving consumer goods
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Cosumar, the only sugar operator in Morocco, is a de facto monopoly operating seven sugar mills and one raw sugar refinery. The company has a total annual production capacity of 1.65 tonnes. To cope with local market cycles the group has developed a business model that enables it to produce sugar from sugar beets or from raw imported sugar. With this flexible industrial approach, Cosumar is able to satisfy local demand regardless of the agricultural output in Morocco, and as a semi-integrated operator controlling the complete value chain for sugar production, the group is continuously striving to develop agricultural output in Morocco to reduce…

Analysis

Lesieur: Consumer goods
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Founded in 1942 Lesieur has emerged as a leading player in the Moroccan agribusiness sector, with a 57% market share of its core business – edible oil. Endowed with the largest refining capacities in Morocco, Lesieur is gradually becoming a pan-African competitor, seeking opportunities in new markets via exports and foreign direct investment. Benefitting from strong brand recognition and loyalty, the group is continuously capitalising on its know-how and experience to further diversify and enrich its product mix thanks to a proactive research and development strategy. Product Lines Lesieur produces and markets five product categories: seed…

Analysis

Résidences Dar Saada: Real estate
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Résidences Dar Saada (RDS) is a Moroccan social and intermediate housing pure play listed on the Casablanca Stock Exchange since December 2014. In less than four years, RDS successfully transitioned from a medium-sized real estate company to the third major operator in the Moroccan social and intermediate housing market, with about 5990 units delivered in 2014, compared to 896 units in 2009. Following its initial public offering (IPO), the company ownership structure is as follows: 1) The Berrada family, 55%; 2) foreign and Moroccan institutional holders, 25%; and 3) a free float of 20%. The company’s 2014 performance was excellent, particularly…