Surge in active shares reflect encouraging trend

The recent positive uptick in stock market activity since the start of the year has had a noticeable impact on previously stagnant accounts, which saw a relative decline in January last year. These accounts experienced a significant increase, rising by 6.7 percent compared to January 2023. The total number of active shares during this period surged to 19,017 from 17,809, reflecting an encouraging trend.

Furthermore, the total number of accounts in the market saw an increase to 423,677 thousand, marking a growth of approximately 6,401 accounts over the span of a year, a rise of 1.5 percent. Despite challenges faced by small investors in monetizing stagnant stocks to unlock frozen liquidity, there is optimism regarding potential improvements in the number of active accounts in the coming months, reports Al-Jarida daily.

This optimism stems from the anticipated positive impact of the proposed government direction and economic program on the market. If even a portion of these initiatives — estimated at 40 to 50 percent—is implemented, it is expected to significantly bolster market performance.

However, the return to activity of many small investors’ accounts is contingent upon their success in liquidating shares, including those with declining prices or delisted stocks moved to the Over-The-Counter (OTC) platform. Yet, the OTC platform lacks essential data and information, hindering investors’ ability to make informed decisions and execute transactions efficiently.

Additionally, long-term investment strategies contribute to the stagnation of a significant portion of traders’ accounts, with many investors holding onto blue-chip and preferred stocks for extended periods.

Foreign ownership in the primary market remains substantial, with the value reaching 5.25 billion dinars. Settlements from last Tuesday indicate ongoing efforts to discreetly select dividend stocks amid a relatively stabilized market. The current value momentum reflects confidence, yet broader alternatives to the primary market stock base are needed to further enhance liquidity and accommodate the preferences of foreign and professional investors.

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