Moroccan mutual funds: buy-outs predominate
The net assets managed by mutual funds are still tumbling down. Over the week ended July 27 the volume has yielded some points to be set at DH 41.2 billion, against DH 42.2 billion a week before, i.e. 1.42 percent downwards.
The decline can be partially explained by the valuation operation, leading to a reduced value of financial portfolios. Indeed, the negative performance of the Stock Market has had a bad impact on the valuation of mutual funds.
Another increasingly important element is the volume effect.
Over the previous week, the volume of buyouts went far beyond that of subscriptions (DH 1.9billion for the first against 1.4billion for the second).
The lack of interest in the mutual fund's market concerns shares, debentures and diversified funds alike. On the other hand, the performance indexes have registered a generalized decline. Stock Mutual Funds went down by 1.59 percent, Diversified Funds by 0.95 percent, and Debenture Funds by 0.05percent.
At the level of shareholders, individuals still monopolize about 90 percent of the total, while the legal entities hardly represent 7 percent.
For the few coming weeks, it is difficult to foresee the market's trend in the absence of any economic indicators on a possible recovery. The market is lacking enough activity and does not allow a new revival of the Debenture Funds, in particular.
Given these facts, the resumption of the process of privatization is expected to breathe new life into both the Stock Exchange and the Mutual Funds market. – (Finances News)
© 2000 Mena Report (www.menareport.com)