Research & Analysis

The national economy is now facing an unprecedented situation marked by a double shock of supply and demand. This is due to the lockdown measures adopted both in Morocco and in most of its trading partners. In response to this challenging context, Bank Al-Maghrib has started a new era of monetary policy since mid-March 2020. [...]

Morocco risk premium analysis by Attijari Global Research

In 2020, COSUMAR is positioned among the resilient stocks in the Equity market. The stock’s high quality is based on the robustness of the Supply/Demand component, the low disruptions in the logistics chain and finally, the room for development of the export activity.

Despite an unfavorable sectoral context, CIMAR outperformed its market at the end of H1-20. The operator posted cement sales volumes down -7.1% against -17.8% for the sector.

As one of the world's TOP 10 Silver mines, SMI is among the few single-product miners with a competitive cash cost between 8.0 and 9.0 $/Oz. The sustainability of current Silver price levels, combined with the stability of SMI’s production, would allow the mining operator to benefit from a considerable margin effect.

With a correction of -5.8% since the beginning of 2020 against -17.3% for the MASI index, TAQA Morocco confirms its status as a defensive stock offering a real investment alternative for risk averse investors.

After a slight increase of 0.5% in Q1-20, the aggregate revenue of listed companies at the end of the 2nd quarter stood at MAD 55.7 Bn, down -10.5%. In more detail, 54 listed companies reported declining revenue in Q2-20 against 36 in the pre-vious quarter. [...]

After hitting a low since April 2013, we note a significant improvement in investor confidence toward the Equity market in September 2020. In more details, AGR Confidence Index stood at 46.6 pts, up +11.1 pts in comparison to the previous edition.

The diversification of Mutandis’s business portfolio strengthens the resilience of its results in 2020. To this end, the stock rate should benefit from a natural drop in its cost of capital on the stock market. According to our own valuation, the share price offers a potential increase of 33%.