According to Property Wire, North Africa's fast growing property sector could be the next to be affected by the credit crunch and turmoil on Wall Street. Their front page headline warned:
Booming property market in Morocco waits for Wall Street effectNorth Africa's fast growing property sector could be the next to be affected by the credit crunch and turmoil on Wall Street.
As more US banks seek mergers to avoid the crash that brought Lehman Brothers down earlier this week, the effect on finance markets is spreading across the world. In Morocco, which has been largely immune to the global credit crunch, property stocks are tumbling.
Moroccan real estate shares fell as much as 6% on Wednesday amid concern that the credit crisis could dampen foreign interest in the North African country's fast-growing property sector.
Analysts said the Moroccan stock market had been stagnating for several months as investors felt share prices had outpaced earnings expectations, especially for property stocks. Shares in real estate firm Addoha ADH.CS were suspended after tumbling 6% to 162.05 dirhams. The stock has lost 45% of its value this year.
Other key companies including Cie. Generale Immobiliere CGI.CS, a property unit of state investment vehicle CDG, and Alliances Development Immobilier ADI.CS, also all suffered falls of around 6%.
'Analysts have said the market is overvalued and a correction would be healthy,' said a Casablanca analyst who asked not to be named.
He said that property stocks were seen as among the most overvalued, and are also a source of particular concern given the global credit crisis.
Tags: Moroccan Morocco Fes, Maghreb news
Moroccan real estate shares fell as much as 6% on Wednesday amid concern that the credit crisis could dampen foreign interest in the North African country's fast-growing property sector.
Analysts said the Moroccan stock market had been stagnating for several months as investors felt share prices had outpaced earnings expectations, especially for property stocks. Shares in real estate firm Addoha ADH.CS were suspended after tumbling 6% to 162.05 dirhams. The stock has lost 45% of its value this year.
Other key companies including Cie. Generale Immobiliere CGI.CS, a property unit of state investment vehicle CDG, and Alliances Development Immobilier ADI.CS, also all suffered falls of around 6%.
'Analysts have said the market is overvalued and a correction would be healthy,' said a Casablanca analyst who asked not to be named.
He said that property stocks were seen as among the most overvalued, and are also a source of particular concern given the global credit crisis.
Tags: Moroccan Morocco Fes, Maghreb news
No comments:
Post a Comment