2023-10-08 00:10:55
The Moroccan Capital Market Authority (AMMC) has just taken a major decision aimed at revising upwards the maximum variation thresholds for shares and other capital securities listed on the Casablanca Stock Exchange.
From tomorrow, October 9, 2023, the maximum upward and downward variation in the price of a capital security during the same session, on the Casablanca Stock Exchange, will be limited to the following thresholds: 10% of the price of reference for equity securities whose quotation is in continuous mode; and 6% of the reference price for equity securities whose quotation is in fixing mode.
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This decision, which comes into force this Monday, aims to strengthen stability and confidence in the Moroccan stock market in the face of the current situation and the evolution of financial indicators. The AMMC’s decision comes in a context where financial markets are subject to significant and potentially volatile fluctuations. By increasing the maximum variation thresholds, the AMMC seeks to prevent excessive movements in stock prices, while allowing some flexibility for investors.
A clear framework for investors
These new limits provide a clear framework for investors by defining the maximum acceptable fluctuations for shares listed on the Casablanca Stock Exchange. They aim to avoid sudden price movements, which might disrupt the regular functioning of the market and compromise investor confidence.
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The AMMC underlines its commitment to carefully monitor the evolution of the Casablanca Stock Exchange and to intervene if necessary to preserve the proper functioning of the capital market. It must be said that this decision demonstrates the AMMC’s desire to maintain a balance between the need to ensure market stability and the facilitation of trade and investments.
Reduce excessive price volatility
The impact of this decision on the Moroccan stock market is likely to be significant. On the one hand, it can help reduce excessive price volatility, thereby providing greater predictability to investors. On the other hand, it can also influence investment strategies, prompting market participants to adjust their approaches to take into account the new variation limits.
It should be noted that these maximum variation thresholds are not fixed in time and might be adjusted in the future depending on market conditions. Please note that the AMMC will continue to constantly evaluate the situation and take appropriate measures to maintain a balanced and transparent market.
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