Casablanca Stock Market

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Casablanca Stock Market

• An Overview

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GDP changes (1980 market prices)
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Budget deficit
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Inflation
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Historical Background

• CSE founded in 1929
• Morocco resort to the World Bank IMF
• CSE reform in 1993
• Privatization program launched in 1993

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Foreign Direct Investment

• 1999 GSM License (11 bn MAD)
• 2001 Vivendi/Maroc Telecom (22 bn MAD)
• 2003 ALTADIS (15 bn MAD)

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• Weaknesses of The CSE

• Marginalisation of minority shareholders
• Free float estimated at only 15
• Overdominance of commercial banks
• Quasi-absence of Trading (leverage, short sales)

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61.54
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• Morocco launched during 2003 an important
  euro-bond issue worth 400 millions over a five
  year period
• The bond issue spread amounted to 215 bp
• The bond issue, contracted without any foreign
  guarantee and with a favorable risk premium,
  reflects the confidence of foreign investors on
  Morocco
• The proceeds of the bond issue financed servicing
  Moroccos expensive debt
• SP improved Morocco status from Neutral to
  Positive

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Macro-economic environment Overview
GDP changes (1980 market prices)
Inflation
Budget Deficit
2002 GDP Break Down

• In the last years, GDP growth was over 3 through
  the dependency reduction from agriculture.
• Inflation is maintained at a low level thanks to
  economy liberalization pricing and Free trade.
• Budget deficit was restrained thanks to
  privatization revenues.