The Moroccan Capital Market Authority (AMMC) has released a warning about the inherent weaknesses in the structure of the Casablanca Stock Exchange, highlighting its heavy dependence on institutional investors as well as insufficient involvement from retail investors and small to medium-sized businesses.
The AMMC’s recently published 2024 annual report, entitled “Capital Markets in Figures,” highlights the dangers associated with having a limited range of investors. According to the study, domestic organizations such as insurance firms and pension funds remain predominant players in the secondary market. Although this offers some level of steadiness, concentrating power among them might make the market susceptible to fluctuations should there be significant external disruptions or rapid exits from international investments.
The report also disclosed that foreign investors currently make up approximately 30 percent of the total market capitalization of listed shares. This highlights the increasing global attractiveness of the Casablanca Stock Exchange, supported by enhanced sovereign credit ratings and bolstered corporate governance and transparency measures.
Even with these advancements, the AMMC stressed the importance of prompt actions to increase local involvement in capital markets. The organization urged for measures aimed at boosting financial understanding and encouraging the engagement of individual investors and small businesses, seeing this as crucial for building a stronger and more adaptable financial environment.
“To ensure long-term development and safeguard against system-wide threats, we need to expand the circle of investors who comprehend and have confidence in the market,” said the AMMC.
The report similarly emphasized the significant impact of digitalization, stressing how it can make financial services more accessible to everyone. As Morocco proceeds with its nationwide digital transformation plan, the AMMC encouraged government officials and banking entities to use technological advancements to reduce disparities in engagement.
The suggested answers included improved financial literacy initiatives, simplified procedures for opening accounts, as well as the creation of digital platforms designed specifically for minor investors and enterprises.
As capital markets play a vital part in funding economic growth, the AMMC’s initiative highlights an increasing agreement that inclusiveness and diversity are not only beneficial but essential for sustaining market well-being over the long term.
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The Moroccan Capital Market Authority has issued a warning regarding the precarious state of the market structure and has called for increased involvement from a wider range of investors.
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