The Casablanca Stock Exchange proceeded, since January 1, 2022, to the definitive stop of the calculation of the Madex index which had been created in 2002 and composed of stocks quoted continuously.
With this stop, announced on April 5, the Morocco Stock Index 20 (MSI20), a new generation index that takes into account international best practices as well as the specificities of the Moroccan market, replaces the Madex and becomes the benchmark index of the Stock Exchange. of Casablanca.
Indeed, the success encountered by the MSI20 since its launch has prompted the Casablanca Stock Exchange to continue the process of modernizing its range of indices by establishing it as a benchmark index for the Moroccan stock market, alongside the Masi. .
As a reminder, a survey was carried out among market professionals (management companies, institutional investors and brokerage firms) in order to measure the impact of this launch, within the framework of the work of the Scientific Committee on Indices.
This survey revealed that 85% of respondents are satisfied with the MSI20 and almost half think it is used as a benchmark. The MSI20 captures the price performance of the most liquid companies listed on the Casablanca Stock Exchange. It is made up of 20 stocks selected from among the 40 largest free-float capitalizations, on the basis of volume on the central market and the frequency of quotation.
The choice of these two indicators was made on the basis of a Principal Component Analysis (PCA), which made it possible to demonstrate that the liquidity of a security can be explained by these two variables which synthesize 92% of the information.
These variables are noted and the sum of the two scores is centered-reduced in order to homogenize the data. In addition, a cap is applied in harmony with the prudential rules of undertakings for collective investment in transferable securities (UCITS).
The sum of the values which exceed the threshold of 10% is capped at 45% of the free-float capitalization of the sample. All of these management rules are subject to regular review by the Casablanca Stock Exchange and the Scientific Committee of Indices, in order to ensure that they continue to best reflect market expectations and the objectives of the index.
Stock market indices represent an indicator of performance and diversification of assets, as well as a benchmark for portfolio managers. They make it possible to follow the trend and evolution of a sector of economic activity, to assess its profitability and risks and thus make the act of investing simpler because it is better informed and measured.
As such, they are essential devices to support the development and liquidity of the stock market. Also, the Casablanca Stock Exchange will continue to improve its range of indices by designing, in collaboration with the Scientific Committee on Indices, new products with a strong impact on market development, in particular an index of securities respecting the principles. of Participatory Finance.