Morocco has been reclassified as a frontier market country by S&P Dow Jones Indices, following feedback from market participants.
A lack of liquidity in equity markets was cited as a “significant issue for market participants,” S&P DJI said in a statement Wednesday.
The country will move next September into the S&P Frontier Broad Market index from its current position in the S&P Emerging Broad Market index.
S&P DJI also considered the positions of Egypt, Kuwait, Saudi Arabia, Palestine and Zimbabwe.
It said Egypt will continue to be classified as an emerging market because concern “surrounding the geopolitical situation has abated.”
Kuwait remains in the frontier market index due to restrictions on foreign ownership.
Saudi Arabia, Palestine and Zimbabwe will continue to be classified as stand-alone markets because they do not qualify yet for reclassification into frontier market indexes, the statement said.