The Casablanca Stock Exchange launched its new Morocco Stock Index 20 “MSI20” on Tuesday. Set up by the Casablanca Stock Exchange teams in close collaboration with the Scientific Committee of Indices, the MSI20 takes into account international best practices as well as the specificities of the national market. Description:
The “Morocco Stock Index 20” (Ticker MSI20) is the compact index created and launched by the Casablanca Stock Exchange to meet the needs of market participants, in particular institutional investors.
It was designed to reflect the performance of the 20 most liquid companies listed on the Casablanca Stock Exchange and thus serve as a new benchmark for the Casablanca market.
Due to its design, the MSI20, a price index weighted by the floating market capitalization, manages to capture 83% of the capitalization of the Casablanca quotation and more than 87% of the overall transaction volume.
The index is revised once a year (September). The frequency of calculation and distribution is in real time for each transaction. Main objectives: – Serve as a benchmark for the equity market with local and international investors.
– Reflect the physiognomy of the Casablanca Stock Exchange through the free float / volume mix.
– Be able to represent the main sectors of activity of the Casablanca coast.
Sectors of activity represented:
Banks (38.2%), Telecommunications (20%), Building and construction materials (15.2%), Agribusiness and Production (8.8%), Transport services (4.3%), Distributors (4% ), Electricity (2.9%), Hardware, Software and IT Services (1.9%), Oil and Gas (1.6%), Mines (1.1%), Real estate investment and promotion (0.9% ), Insurance (0.6%) and Chemicals (0.4%).
Composition :
Attijariwafa Bank (20%), Itissalat Al-Maghrib (20%), BCP (10%), LafargeHolcim Maroc (9.39%), Bank Of Africa 8.21%), Cosumar (6.88%), Ciments du Morocco (5.77%), Marsa Maroc (4.33%), Label Vie (3.46%), Taqa Morocco (2.92%), HPS (1.94%), Total Maroc (1.64% ), Minière Toussit (1.07%), Mutandis (0.99%), Lesieur Cristal (0.97%), Addoha (0.65%), Atlanta (0.63%), Auto Hall (0.59 %), Snep (0.35%) and Residences Dar Saada (0.21%).
Methodology:
On an initial universe of the 40 largest free-float capitalizations, the most liquid securities on the basis of volume on the central market and the frequency of quotation are used. These last two indicators are noted and the sum of the two scores is centered-reduced in order to homogenize the data.
Finally, the 20 more liquid securities are retained by applying a dynamic cap of 20%, 15% and 10% in harmony with the prudential rules imposed on UCITS. In addition, the sum of the values exceeding the threshold of 10% is capped at 45% of the free-float capitalization of the sample. These capping rules must be respected at each revision of the MSI20 index.
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