Government moves to boost Casablanca bourse

Moroccan finance, economy, tourism and privatization minister, Fathallah Oualalou, announced on Tuesday a set of measures to guarantee Morocco's return to international financial markets, to diversify its financing resources and reduce dependence on domestic resources.

The minister, briefing the press on a new plan to boost the Casablanca stock exchange, said measures will include perks to savings to attract investments in the bourse, new regulations of institutional investments.

He said his department will submit to the parliament's upcoming session new law proposals, including one to reinforce the role of the bourse watchdog (CDVM).

Oualalou called the bourse's drop "paradoxical and unjustified" given the country's positive overall economic outlook. Companies listed on the stock market are posting "continuous and uninterrupted" progression and their prospects for 2001 are also good as analysts are expecting profits growth to reach 12%, he added.

Oulalalou was also upbeat that economy will generally witness good perspectives since both internal (drought) and external (hike in oil prices, Euro slump) factors are set to be alleviated.

He cited other incentives such as a three-year 25% reduction of the corporate tax for companies listed on the bourse and a 50% reduction for companies whose listing is accompanied by an increase in capital.