EXECUTIVE SUMMARY
The release of listed companies’ operational achievements for the second quarter of 2021 took place within a favorable context of economic recovery. According to the HCP, the Moroccan econo-my would have achieved a growth rate of 12.6% over the same period.
At the end of this period, it is clear that investors reacted positively to the operational achievements of listed companies. As a reminder, the MASI index posted its strongest performance during August observed over the last 14 years, i.e. since 2007. This is a monthly performance of 3.2%, driving the Equity market to a higher level of 3 years, i.e. 12,785 points.
As of today, 71 listed companies out of a total of 74 released their achievements at the end of the second quarter of 2021. These represent more than 99% of the market capitalization.
When reading the press releases of listed companies, we note four key points :
- Listed companies benefited from a favorable base effect in Q2-20. A period marked by the repercussions of the strict lockdown on economic activity. In a context of recovery, growth in listed companies’ revenue thus stood at +13.5% in Q2-21 ;
- On a half-yearly basis, aggregate market’s revenue settled at MAD 128 Bn, up +7.3% compared to H1-20. This development is mainly driven by the sectors that are least resilient in the face of the health crises’ repercussions in 2020. These are Automotive (+89%), Building Materials (+32%), Cement (+22%), Real Estate (+10%) and Energy (+9.5%) ;
- The deceleration in loans’ growth to 3.7% in H1-21 does not come as a real surprise to us. In fact, after having made a considerable effort in 2020 to support the Moroccan economy in the face of Covid-19, banks would a priori be more cautious about the quality of their loans ;
- Based on our preliminary analysis of the mid-term results of listed banks, we believe the commission margin and the interest margin performed well. In contrast, the result of market activities would have a negative impact on NBI growth. As a reminder, the banks' fixed income portfolio was penalized by an unfavorable base effect due to two successive cuts in the key rate during H1-20.
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