Moroccan bourse drops second day in a row
On Tuesday, May 29, the Morocco's all-share index fell 0.5 percent closing at 649.85 points, erasing all of last week’s gains following Monday’s 0.6 percent drop. Last week’s sudden gain was due to the high demand by foreign investors with the inclusion of the Moroccan bourse in the MSCI emerging markets index.
Tuesday’s total trading volume amounted to merely 12.2 million dirhams ($1 million), with 16 losers, 10 winners and four remaining unchanged.
Analysts expect the stock exchange to pick up in early June, as twelve Moroccan stocks will be included in the MSCI index starting June 1. The move is expected to attract foreign cash and boost volumes in the presently illiquid bourse.
According to the Reuters news agency, this week’s sudden fall of the index was sparked by the finance ministry’s decision to pass a draft law on a tax-deductible saving plan for private investors without the prior consultation of a committee set up by the ministry, which includes bourse and brokerage houses' officials. The Moroccan cabinet must first approve the long-awaited plan before it be applied as a law. —(MENA Report)
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