The North Africa Journal: Where to Invest in the Moroccan Economy 

Where to Invest in the Moroccan Economy
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Arezki Daoud on 02 February, 2010 08:55:00
 
Companies and businesses active in the North Africa country have had their own
share of troubles and many see continued difficulties this year. But despite the
downturn, or perhaps because of it, there are opportunities to grab here and
there.
Analysts of CFG say that investors looking to acquire equities through stocks in
the Casablanca Stock Exchange should adopt a stock-picking approach, favoring
stocks with solid fundamentals and a good visibility on earnings over the next
few years. Some cyclical stocks can also prove to be worthy investments.
The recommended strategy for these stocks is to acquire shares when the economy
is on a descending cycle as these stocks have proven throughout history to
anticipate economic revival. But trouble still looms. The same analysts estimate
that a glance at banks’ 2009 interim financial statements foreshadows how that
sector, for example, will evolve in the short run. The banking sector is facing
a slowdown in its traditional business activities along a tightening in interest
margins. Banks are encountering deterioration in risk levels which may lead to a
surge in their cost of risk. This report looks at what investors should expect
as the new year begins.
Click here to read the analysis.