The North Africa Journal: Avoiding Risk and Finding Opportunities on the Casablanca Stock Exchange in 2009 

Avoiding Risk and Finding Opportunities on the Casablanca Stock Exchange in 2009
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The North Africa Journal on 13 April, 2009 09:58:00
 
This strategy is based on the arbitration in favor of yield and non-cyclical
sectors, which are recommended in reversal phases because of their defensive
characteristics. For the stocks belonging to the cyclical sectors, the
Casablanca Finance Group (CFG) recommends higher selectivity. These stocks were
historically favored during periods of strong growth, but they are the first to
encounter cycle reversal.
CFG analysts find that the last five years were profitable for cyclical stocks,
since they were correlated to the economic context, therefore benefiting from
the growth of the economy during those last years. The top achievers
outperformed the CFG25 index. In the real estate sector, for instance, the
Addoha Company achieved a cumulated performance of more than 700% since its
initial public offering (IPO), when the share price reached its highest at MAD
232.5. Also, banks recorded performances over 400% between 2002 and 2008,
compared to a 316% progression for the CFG25 index. This report looks at CFG’s
proposed investment strategy for the year 2009, starting with a review of 2008.
Continue here.