Moroccan shares recover but trade still thin
CASABLANCA, (Reuters) - The Moroccan bourse rose for the first time this week, to close on Wednesday 0.93 percent higher on bargain hunting, after falls in the previous two sessions but trade remained thin.
The all-share index closed at 655.87 points, up from Tuesday's 649.85 points close. The bourse had fallen 1.1 percent in the previous two sessions, erasing all of last week's gains. Total traded volume stood at just 29 million dirhams ($2.45 million).
"Ahead of the bourse on the MSCI listing, the bourse is seeing volatile swings in prices, luckily volumes are low," a broker said.
An analyst explained that while institutional investors remain on the sidelines, small investors lack direction on how the market would react to its effective listing in the MSCI emerging markets index on Friday.
Twelve Moroccan stocks will make their debut on June 1 in the MSCI index, in a move analysts expect would attract long-missed foreign cash and spur volumes in the cash-strapped bourse.
Of the 30 traded issues, gainers led losers 12-9, while nine stocks ended unchanged.
Insurance firm Wafa Assurance led gainers with 27,979 shares trading on the block market at an average 498.7 dirhams each, before closing 3.8 percent higher at 498 dirhams.
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