Morocco: 12% Increase in Profits of Companies Listed in Stock Exchange

 Morocco's currency. Reuters
Morocco's currency. Reuters
TT

Morocco: 12% Increase in Profits of Companies Listed in Stock Exchange

 Morocco's currency. Reuters
Morocco's currency. Reuters

The total net profit of 70 companies listed on the Casablanca Stock Exchange last year was 31.81 billion dirhams ($3.5 billion), up 12.1 percent year-on-year, according to a Moroccan business bank.

The increase in profits is mainly due to the efforts made by Moroccan companies in the area of debt reduction and rationalization of expenditures in addition to the general economic situation, the bank explained in its report on Morocco’s stock performance.

Morocco's economy grew by four percent in 2017, compared to 1.2 percent in 2016.

The report said that 51 companies listed on the Casablanca Stock Exchange announced a rise in net profits while 19 companies reported a decline in their annual results.

It pointed out that the banking sector is the largest contributor to these profits with 36.5 percent, followed by telecommunications with a 17.9 percent stakes and construction and building materials sector with 10 percent of the total net profits of listed companies.

The building materials industry recorded the highest rise in its annual profit block by 60.6 percent to 3.2 billion dirhams ($348 million).

The report said that the rise was mainly due to the results of the “Cement Morocco,” which moved from a loss of 136.4 million dirhams ($15 million) in 2016 to a net profit of 979 million dirhams ($106.5 million) in 2017.

Also, the profits of the six Moroccan banks listed on Casablanca Stock Exchange amounted to 8.7 percent to 11.7 billion dirhams ($1.3 billion).

The bank attributed the performance to Moroccan banks' risk management results and the acquisition of Attijariwafa Bank to Barclays Bank in Egypt.

The report also pointed out that the profits of the mineral sector increased by 71.8 percent in 2017 compared to 1.3 billion dirhams in 2016 ($141.3 million).

The increase was mainly due to a 67.2 percent increase in the profits of a mining company after selling stakes in the Limekal copper exploitation project in the Congo for the Chinese Wanbao Group.



Gold Rebounds to End 6-Session Losing Streak as Dollar Rally Pauses

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
TT

Gold Rebounds to End 6-Session Losing Streak as Dollar Rally Pauses

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold prices rebounded on Monday, having posted losses in the previous six sessions, with gains driven by a pause in the dollar's rally, while investors await comments from the Federal Reserve officials for clarity on the interest rate trajectory.
Spot gold rose 1% to $2,587.83 per ounce by 0917 GMT, moving away from a two-month low hit on Thursday. US gold futures were up 0.9% at $2,592.20.
Gold prices last week saw their biggest weekly decline in over three years as expectations of less-aggressive interest rate cuts by the Fed boosted the dollar.
However, the dollar was holding flat below Thursday's one-year high after rising 1.6% last week. A softer dollar makes bullion less expensive for buyers holding other currencies, Reuters said.
"We can look to the dollar for a significant part of the current gold price corrections ... I'm not saying you've found a solid physical floor yet, but clearly, some opportunistic buying is coming in to support the market as well," independent analyst Ross Norman said.
"As the year ends, we will see volatility in gold prices and there'll be some books clearing and profit-taking, regardless of what the Fed does in December."
Recent US economic data has reduced expectations for a December rate cut by the Fed. At least seven US central bank officials are due to speak this week.
Higher interest rates make holding gold, which doesn't pay any interest, less attractive.
"President Trump's inauguration is likely to see an ongoing strengthening of the USD (US dollar), which is negative for gold in the short to medium term. However, as his stated policies are likely to be significantly inflationary in the long term, this will benefit gold," said Michael Langford, chief investment officer at Scorpion Minerals.
Spot silver rose 1.4% to $30.63 per ounce, platinum added 1.4% at $951.59 and palladium climbed 1.8% to $967.62.