Capital Markets
From The Report: Morocco 2016
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The Casablanca Stock Exchange (CSE) was off to a good start in 2016, and in June saw its largest initial public offering (IPO) in eight years. However, the bourse’s all-share index remains below the levels seen before the global financial crisis, as do IPO and trading activity more generally, and it seems likely to be some time before these return to pre-crisis levels. Nevertheless, the coming months and years will see a wide range of reforms applied across the kingdom’s capital markets, including the launch of new exchanges and a variety of products, all of which should help to boost the CSE’s substantial potential.
This chapter contains interviews with Nezha Hayat, Chairperson, Moroccan Capital Markets Authority; Nikhil Rathi, CEO, London Stock Exchange; and Younes Benjelloun, Partner and CEO, CFG Bank.
Articles from this Chapter
Gaining momentum: Reforms are under way to return liquidity and listings activity to pre-financial crisis levels
New beginnings: OBG talks to Nezha Hayat, Chairperson, Moroccan Capital Markets Authority (AMMC)OBGplus
Interview:Nezha Hayat To what extent does the current regulator differ from its predecessor? NEZHA HAYAT: The creation of the AMMC is the result of a holistic and comprehensive effort to undertake a deep reform of capital markets in Morocco, and the willingness to create an independent capital market authority in line with international best practices and standards, in particular with the International Organisation of Securities Commissions’ standards and principals. This shift towards…
Network effect: OBG talks to Nikhil Rathi, CEO, London Stock Exchange (LSE)OBGplus
Interview:Nikhil Rathi What benefits can be expected from the agreement signed between the LSE Group (LSEG) and the Casablanca Stock Exchange (CSE) in 2014? NIKHIL RATHI: A key part of the agreement is to give the CSE access to technologies that provide international investors with a better investment environment and infrastructure. It is also critical to develop education and training programmes, and to this end the development of a financial cluster in Morocco means the improvement of its…
Expanded options: The launch of new products and investment vehicles is gathering paceOBGplus
As part of a series of wide-ranging reforms aimed at revitalising the Casablanca Stock Exchange (CSE), the authorities have been working on launching a number of new products, vehicles and activities in recent years; this rollout gathered pace in 2016. Tradeable Funds Prominent among these are several types of tradeable investment funds. The lower house of parliament approved a draft law establishing a market in listed real estate investment trusts (Organismes de Placement Collectif en Immobilier,…
Change at the top: Younes Benjelloun, Partner and CEO, CFG Bank, on the outlook for the Casablanca Stock Exchange (CSE)OBGplus
With the overhaul of the CSE’s board, the market is set to move forward in terms of product availability, regulation and international best practices. To better understand the demutualisation, a brief history of the stock is needed. Created in 1929, the CSE saw a lot of companies going public in the 1970s, in the wake of the “moroccanisation”. In the 1990s the first reforms were undertaken to boost capital markets following the structural reforms required by the IMF. In 1995 the CSE was privatised, with brokers each having a 6% stake. Since then, the state has acted as a licensing authority and brokers as the private concessionaire, acting…
Société des Brasseries du Maroc: RetailOBGplus
Company Overview Founded in 1919 and listed on the Casablanca Stock Exchange since 1943, Société des Brasseries du Maroc (SBM) is a brewer with a market share of more than 95% in Morocco. The company’s activities include beer production (86% of consolidated revenues), mineral water production and import, wine production and Nicolas franchise retail network. SBM operates several industrial plants with a total production capacity in excess of 150m litres of beer and 12m litres of wine, as well as a mineral water production utility (Ain Ifrane) with a capacity of 100m litres per annum. The company’s main shareholder is Castel Group, which…
Addoha: Real EstateOBGplus
Company Overview Addoha is Morocco’s largest real estate developer with operations in all the segments, including social, middle-income and high-end. In 2015 the social and middle-income segments accounted for 62% of the developer’s revenue, down from 70% in 2011. Revenue stood at Dh7.1bn (€651m) in 2015 compared to Dh9.5bn (€871m) in 2013 prior to the decision to cut production as a result of a new strategy, which focuses on cash generation. Addoha delivered 17,510 units in 2015, compared to 24,591 units in 2013. Addoha’s stock has been traded on the Casablanca Stock Exchange since 2006. The management is currently implementing a…
Addoha: Real EstateOBGplus
Company Overview Addoha is Morocco’s largest real estate developer with operations in all the segments, including social, middle-income and high-end. In 2015 the social and middle-income segments accounted for 62% of the developer’s revenue, down from 70% in 2011. Revenue stood at Dh7.1bn (€651m) in 2015 compared to Dh9.5bn (€871m) in 2013 prior to the decision to cut production as a result of a new strategy, which focuses on cash generation. Addoha delivered 17,510 units in 2015, compared to 24,591 units in 2013. Addoha’s stock has been traded on the Casablanca Stock Exchange since 2006. The management is currently implementing a…
Attijariwafa Bank: BankingOBGplus
Company Overview Attijariwafa Bank is the leading bank in Morocco in terms of outstanding loans (25% as of December 2015), and number two in terms of deposits behind BCP. The group operates 3265 branches and started its geographical expansion outside Morocco in 2005. The bank now has branches in Tunisia (6% of consolidated net income) and nine French-speaking sub-Saharan countries (13% of consolidated net income). Attijariwafa Bank operates in all banking business segments including retail banking, consumer loans and mortgages and is also the majority shareholder (79%) of Wafa Assurance, Morocco’s leading insurance company. By the end of 2015…
Attijariwafa Bank: BankingOBGplus
Company Overview Attijariwafa Bank is the leading bank in Morocco in terms of outstanding loans (25% as of December 2015), and number two in terms of deposits behind BCP. The group operates 3265 branches and started its geographical expansion outside Morocco in 2005. The bank now has branches in Tunisia (6% of consolidated net income) and nine French-speaking sub-Saharan countries (13% of consolidated net income). Attijariwafa Bank operates in all banking business segments including retail banking, consumer loans and mortgages and is also the majority shareholder (79%) of Wafa Assurance, Morocco’s leading insurance company. By the end of 2015…
Ciments du Maroc: ConstructionOBGplus
Company Overview Founded in 1951 and listed on the Casablanca Stock Exchange since 1969, Ciments du Maroc is the second-largest cement player in the country with a 23.8% market share. It produces 3.3m tonnes of cement in a market that consumed 14.2m tonnes in 2015. The group is currently running under capacity at 4.3m tonnes, which is equivalent to a utilisation rate of 78%, in an overall market capacity of 20.3m tonnes. Ciments du Maroc has three cement plants: one in Marrakech (capacity 1.3m tonnes), Safi (0.8m tonnes) and Agadir (2.2m tonnes). Furthermore, the group produces ready-mixed concrete and aggregates, which account for 12% of total…
Label Vie: RetailOBGplus
Company Overview Founded in 1985 and listed on the Casablanca Stock Exchange since 2008, Label Vie (LBV) is the number two in the modern distribution sector in Morocco with a 30% market share in terms of surface area (vs. 54% for Marjane/ Acima). The company operates three business segments: supermarkets (number one with 46 stores), hypermarkets (number three with five stores) and hypercash (number one with 11 stores). LBV operates its stores under the Carrefour brand through a franchise agreement with Carrefour Group ( Carrefour Markets for supermarkets, Carrefour for hypermarkets and Atacadao for hypercash stores) and has an aggressive development…
Maroc Telecom: TelecomsOBGplus
Company Overview Maroc Telecom (MT) is the leading telecoms operator in Morocco. In January 2015 MT acquired six additional sub-Saharan subsidiaries. The international portion of the business now contributes more than 40% to company revenue. In Morocco the firm operates in both the mobile and fixed segments, while in sub-Saharan Africa it is only involved in the mobile market. The stock trades on the Casablanca Stock Exchange and accounts for over 20% of its total market capitalisation. MT is poised to recapture some of its lost glow in Morocco amid strong competition, as the sub-Saharan subsidiaries are expected to deliver substantial growth.…
Maroc Telecom: TelecomsOBGplus
Company Overview Maroc Telecom (MT) is the leading telecoms operator in Morocco. In January 2015 MT acquired six additional sub-Saharan subsidiaries. The international portion of the business now contributes more than 40% to company revenue. In Morocco the firm operates in both the mobile and fixed segments, while in sub-Saharan Africa it is only involved in the mobile market. The stock trades on the Casablanca Stock Exchange and accounts for over 20% of its total market capitalisation. MT is poised to recapture some of its lost glow in Morocco amid strong competition, as the sub-Saharan subsidiaries are expected to deliver substantial growth.…
