Continuous market decline in Casablanca
The Moroccan stock market seems unable to regain grounds, as Wednesday's session ended slightly lower—having lost all of its previous day's earnings.
The IGB fell to the initial level it was at the beginning of the week, closing at 727.84 points—representing a 0.16 percent loss for the day—with an overall annual decline of 6.34 percent.
The downward trend continued to show in Wednesday's trading session, as trading volume merely reaching 21.4 million Dirhams. The first Moroccan private group, ONA, and its mining holding company Managem, represented 36 percent, or DH7.6 million, of the day's total transaction volume.
The only two stocks which managed to finish the day with slight gains, were Consumar and Africa gaz.
The overall market performance was poor, as even the leading shares were affected by the general downward trend—unable to provide minimal market movement.
For a change, the industrial sector (including cement, transport, food, and iron and steel industries) performed better than the banking sector—mostly due to the increase in oil prices. However, even if the discovery of the oil field in the Talsinnt area provoked effervescence in the Moroccan stock market, its impact was quickly limited by the profit taking movement.
The market's activity has for some time now been characterized by the cautioned “wait and see” approach of institutionalized investors. Analysts predict that the stagnant situation may well remain until the first national telecomm operator, Ittissalat Al Maghrib, enters the stock market. – (Albawaba-MEBG)
© 2000 Mena Report (www.menareport.com)