Stock market: institutional investors continue to dominate the market in the 1st quarter of 2022

Stock market: institutional investors continue to dominate the market in the 1st quarter of 2022

The AMMC’s “Profile of stock market investors” report, for the 1st quarter of 2022, shows that institutional investors continue to dominate the stock market. Here are the main trends emerging from the report.

The first quarter of 2022, which saw the beginning of the reversal of the uptrend of the Casablanca stock exchange, was marked by the dominance of institutional investors.

According to the report “Profile of stock market investors” of the Moroccan Capital Market Authority, published for the first quarter of 20222, UCITS concentrate 42% of the volume in the central market, up 14 percentage points compared to the previous quarter and Moroccan legal persons represent 27% of the volumeup 4 percentage points compared to Q1-2021.

Moroccan natural persons intervened for 20% of the volume of the quarter recording an increase of 10 percentage points compared to the previous quarter.

To remember that 1er quarter of the year was marked by the start of the downtrend– which was later confirmed – caused by the lack of visibility hovering over the market due to the consequences of the outbreak of the war in Ukraine and the risk of inflation.

Indeed, the Casablanca rating recorded respective declines in the MASI of -5.85% in February and -1.94% in March, to close the first quarter of 2021 at 12,818.11 points, i.e. -4.04% compared to compared to the end of December 2021. The Morocco Stock Index 20 (MSI20), an index comprising the 20 most liquid stocks, fell by -4.47% to 1,037.15 points.

On the other hand, year-on-year, the two indices recorded a positive performance of +11.62% for the MASI and +10.84% ​​for the MSI20.

These developments were accompanied an overall quarterly volume of trade on the central and block markets of 10.2 billion dirhams in the first quarter of 2022against 9 billion dirhams over the same period in 2021, showing an increase of 13.3%.

By market, exchanges on the central compartment total an amount of 9.5 billion dirhams, or 93% of the overall volume, while over-the-counter transactions represent 7% of the overall volume, or 0.7 billion dirhams.

Buyer UCITS on 1er quarter 2022

The Moroccan legal persons (PMM) attracted a purchase volume of 2.1 billion dirhams in the 1st quarter of 2022, up 21% compared to the same period in 2021, and a sale volume of 2.9 billion dirhams, thus posting a net position saleswoman.

For their part, the UCITS generated a net long position on 1er trimester. They achieved a purchase volume of 4.7 billion dirhams, up 46.4% compared to Q1 2021, and a sale volume of 3.2 billion dirhams.

Reached by LeBoursier, a local analyst points out that “the first quarter saw a mixed trend. We started the year on a global upward trend thanks to a strong buying position and good prospects for the market. But towards the end of February the market began to decline following the outbreak of a selling trend generated by a lack of confidence following the start of the war in Ukraine”.

“Because of these elements, we don’t really have an overall trend for the first quarter. Moreover, it is clear that Moroccan investors have remained present, especially institutional investors. So they continued to dominate the market,” he adds.

The Moroccan natural persons (PPM), they recorded a purchase volume of 1.9 billion dirhams, up 20.1% compared to the 1er quarter of 2021, and a sales volume of 1.8 billion dirhams, thus generating a net buying position.

Concerning the Foreign legal persons (SME), they generated a purchase volume of 484 MDH, up 10.9%, and a sale volume of 695 MDH, posting a net selling position.

“Opposite, foreign investors have retreated. They always react this way in times of chaos and lack of visibility. They are still present, but not very active, ”he comments.

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