The Egyptian Stock Exchange made gains after falling 3 sessions..and experts explain Qatar’s relationship with the gains

Cairo, Egypt (CNN) – The Egyptian Stock Exchange made huge profits on Tuesday, immediately after an agreement between Egypt and Qatar was announced to pump up investments worth $ 5 billion over the coming period.

The Egyptian Stock Exchange’s main index rose 1.36% to 153 points during Tuesday’s trading session, and market capitalization rose $ 6.8 billion ($ 370.9 million). Egypt, the stability of the dollar exchange rate and returned the return on investment in the money market.

The Egyptian Prime Minister, Dr Mustafa Madbouly, and a number of his government ministers met with Sheikh Mohammed bin Abdul Rahman Al Thani, Minister of Foreign Affairs of the State of Qatar, and Ali bin Ahmed Al Kuwari, Minister of Finance of Qatar. and an agreement has been announced on a set of investments and partnerships in Egypt totaling $ 5 billion in the coming period, according to an official statement.

Hanan Ramses, a financial markets expert, said that the announcement of Qatar’s pump of investments pushed the Egyptian stock market upwards, due to investors’ expectations in the money market, the impact of Qatari investments on supporting dollar liquidity in the local market, to support foreign exchange reserves in Egypt and to stabilize the exchange rate, which encourages the return on investment in The money market as one of the savings investment instruments.

Ramses added, in exclusive statements to CNN in Arabic, that another reason for the rise of the stock market is the performance of a number of leading companies with strong business results, which was reflected in their performance during Tuesday’s session, as the shares of these companies rose, and led to the stock market achieving positive performance.

Hanan Ramses pointed out that the Arab financial markets have performed positively during the last period, due to the rise in oil prices due to the global inflation wave and the Russo-Ukrainian war, which indicates that the budgets of the Gulf countries has achieved surpluses, part of which could potentially be directed at investing in Egypt, which will reflect positively on the economy.The Egyptian foreign exchange reserve position has improved and confidence in the Egyptian money market has been restored.

Ramses indicated that the positive performance of the stock market on Tuesday’s session was preceded by a sharp drop in indices for 3 consecutive sessions due to investors’ fears over two rumors, the first being related to the government’s rise in energy prices for factories , which will negatively impact operating costs and their distributable profits, leading to a decline in equities, particularly in the industrial sector. Which testifies to an intense sales wave by institutions. The second rumor claimed that the government had stopped importing some products from abroad, which had an impact on the requirements for the production of some commodities.

The Egyptian stock market fell by a large percentage during the Thursday, Sunday and Monday sessions, with the main index losing 503 points, and the market capital losing 26.4 billion pounds ($ 1.4 billion).

In response to the continued sales of foreign investors on the Egyptian Stock Exchange, the financial market expert said that foreign investors continued to record net sales on the stock exchange, due to the Gulf’s financial markets supporting a sharp rise in support through strong budgets and high growth rates due to the rise in oil prices, note that foreign investment is reluctant to enter the market Egyptian money in light of weak liquidity in the market.

Hanan Ramses linked the continued rise of the Egyptian capital market to the activation of the government’s supply program to increase the number of securities supply and attract new liquidity and new traders.

The Egyptian government has begun taking the necessary measures to offer other shares in some companies in which the National Investment Bank participates in the Egyptian Stock Exchange, within the framework of the government program for government offerings with the aim of expanding the ownership base, activating the stock exchange and foreign investment attract, according to an official statement by dr. Hala Al-Saeed, Minister of Planning and Economic Development.

Mohamed Kamal, a member of the Board of Directors of the Securities Division of the General Federation of Chambers of Commerce, has agreed that the announcement of Qatari investments worth $ 5 billion in Egypt during the coming period will increase the return on investment in encouraged the Egyptian capital market. especially because stock prices have reached attractive levels that are considered acquisition opportunities.Purchasing forces appeared during the trading session on Tuesday and pushed the money market to move positively.

Kamal in exclusive statements to CNN in Arabic indicated that the Egyptian Stock Exchange saw selling pressure during 3 consecutive sessions, due to the preference of some investors in the money market to sell part of their investments in shares, to save high-returns certificates in government banks, noting that the Egyptian institutions were behind share A large number of these sales, which decreased the main index to the level of 11 thousand points, and significantly reduced stock prices until they became attractive to buy.

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