Effect of Block Trading on the Moroccan Stock Exchange

Abstract

Abstract

This research attempts to explore the block trading impact on the Moroccan stock market functioning and performance. The economic literature identifies two types of effects, the temporary and the permanent. Indeed, the influence of the block market relates to the liquidity, supply and demand, and to the informational content of these financial transactions reserved for large and institutional investors. Theoretical and empirical lessons have inspired the application of the ARDL econometric methodology, to the stock market data, to measure the blocks effects on the Moroccan financial. The main results of this empirical exploration do not confirm the permanent impact on any Moroccan Financial Market Indicator. In other words, the liquidity effect is weak and limited, while the informational effect is almost zero and insignificant.

Keywords: Moroccan Stock Market, Block Trading, Informational Effect, ARDL Model