MOROCCO
A lack of foreign and institutional interest in Moroccan
stocks continued to weigh down on the Casablanca Stock
Exchange, with the market remaining on a downward
trend. Activity was low and sentiment continues to reel
under a slowdown in economic growth.
Severe drought and lack of rainfall have lowered the
economic prospects for 1999, putting growth estimates
for the year at less than 1%. The Moroccan economy remains
heavily dependent on the agriculture sector, which
accounts for 17% of GDP and employs 50% of the labor
force. The economy needs to grow by at least 6% per annum
over the coming three years to curb the high unemployment
rate, currently at more than 20%.
EGYPT
Egyptian equities rallied strongly in November and December
on the back of spectacular gains by leading blue-chip
stocks in the telecommunications, banking, construction,
and tourism sectors.
Heavy demand from both local and foreign investors
sent the market to new highs with gains in the first two
weeks of December totaling almost 10%. This brought the
year-to-date performance to more than 17%, making Egypt
the second-best-performing stock market in the Middle East
after Tunisia this year. Market leader MobiNil led the
market higher as it broke all records and closed at
EGP155.76 on December 9. Other top performers included
Orascom Construction Industries and CIB.
JORDAN
The bearish sentiment that has dominated the Amman
Stock Exchange for most of 1999 continued in November
and December. After some initial gains in the summer
following positive privatization moves by the government,
the market fell to profit-taking and a general lack of
interest on the part of international investors. This was reflected
in a significant drop in foreign portfolio inflows,
which in the first eleven months of 1999 fell to JD13.9
million ($19.6 million) from JD44.5 million ($62.7 million)
over the same period last year. Nevertheless, total
turnover from January to October reached JD304.8 million,
up 13% on 1998. The industrial sector accounted for
53.5% of total activity, followed by banking with 36.8%.
