EXECUTIVE SUMMARY
The release of listed companies’ operational achievements in the 2nd quarter of 2020 is a long-awaited deadline by investors. Two main reasons would justify this interest. On the one hand, to be able to assess the resilience level of the various listed sectors in a context where strict lockdown measures marked almost entirely this 2nd quarter (from March 20th to June 20th 2020). On the other hand, collect any comments from Top Management regarding their vision for the whole year 2020.
At the end of August 2020, 69 listed companies out of a total of 73 released their Q2-20 revenue, representing 99% in the total market capitalization.
Following the aThe listed banking sector is continuing its efforts to support the economic recovery, through a sustained increase in customer loans of 5.4% at the end of the first half of 2020. In light of the unprecedented health crisis context, this situation weighs significantly on banks’ cost of risk which has more than doubled over the same period ;
- When analyzing the evolution of the stock market, we believe that investors are now looking beyond the health crisis. In fact, investors are making bets on the recovery in 2021 regarding many listed sectors. In this context, the MASI index erased nearly 60% of its correction induced by the Covid-19 crisis ;
- Our investment themes outlined in our strategic report published in April 2020 (Cf. Covid-19 : glimmers of hope at the end of the tunnel) now present attractive opportunities on the stock market. These include "precious metals", "digitalization", "agribusiness" and "modern distribution".nalysis of listed companies’ quarterly press releases, we come out with four key messages:
- After showing an almost stagnation in Q1-20, the market’s revenue fell by -10.5% during this 2nd quarter, penalized by a lockdown effect which lasted over 80 days. As expected, the Real Estate, Tourism, Distribution and Cement sectors are by far the most affected ;
- The listed banking sector is continuing its efforts to support the economic recovery, through a sustained increase in customer loans of 5.4% at the end of the first half of 2020. In light of the unprecedented health crisis context, this situation weighs significantly on banks’ cost of risk which has more than doubled over the same period ;
- When analyzing the evolution of the stock market, we believe that investors are now looking beyond the health crisis. In fact, investors are making bets on the recovery in 2021 regarding many listed sectors. In this context, the MASI index erased nearly 60% of its correction induced by the Covid-19 crisis ;
- Our investment themes outlined in our strategic report published in April 2020 (Cf. Covid-19 : glimmers of hope at the end of the tunnel) now present attractive opportunities on the stock market. These include "precious metals", "digitalization", "agribusiness" and "modern distribution".
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