Stock market chairman: The capital market is suffering from a “vehicle” crisis, and government proposals are one of the important solutions

The first sessions of the Portfolio Egypt 2022 conference were witnessed by an excellent participation of dr. Mohamed Farid, chairman of the Egyptian Stock Exchange, presented by Hazem Sherif, editor-in-chief of the newspaper Al Mal, who asked him a general question that left. the space for the Chairman of the Stock Exchange, who elaborated on the market and its crises, and how to get out of the crisis situation.

Dr. Mohamed Farid, Chairman of the Board of Directors of the Egyptian Stock Exchange, said that the problem must be accurately described in order to reach solutions that address the financial market crises and the required reforms.

He added, during his opening speech at the Egypt 2022 Portfolio Conference, that the financial market is suffering from a complex crisis, and this crisis is similar in its characteristics to the global financial crisis, both in the liquidity and money crisis and the rise in inflation, leading to the signing of stock market corrections.

He pointed out that the Egyptian market is currently under various pressures due to various crises at global and local level, and pointed out that increasing the supply side is a good solution to deal with that crisis.

He explained that government proposals are one of the good catalysts for reviving the stock market in the current period, pointing out that it implements education and awareness programs on the importance of investment and gradual saving in the financial markets by exploiting investment funds in particular.

Farid stressed that the most prominent changes made in the context of the increase in demand, which reduces the age of the investor to less than 21 years, have contributed to an increase in the number of modern codes of less than 21 to 5 To reach 500 investors. .

He pointed out that the stock market remained long without implementing any government proposals, but when the “E-Finance” company was launched last year along with the additional shares, it contributed to an increase in trading activity.

The chairman of EGX explained that, despite the lapse of less than a year of its listing on the stock exchange, e-Finance was able to enter the Morgan Stanley Emerging Markets Index, emphasizing that it was a message is of the importance of the offer process in the stock exchange, and the increase in the number of companies’ offer.

On the demand side, the stock market seeks to increase the institutional investment component within the state’s plan, noting that the largest component of pension funds in the world is the component of equities that generate returns that enable countries to pay the membership fees of pensioners .

Farid stressed that there is a complete belief among institutions that the time is right to take the component of investment and gradual saving in the financial markets.

Last April, Al-Mal revealed that Prime Minister Mostafa Madbouly with dr. Mohamed Farid, chairman of the Egyptian Stock Exchange, discussed ways to increase the volume of Egyptian institutions’ investments in the local stock market, led by the General Authority for Social Security and Pensions, and the Egyptian Endowment Authority.

Farid said that ongoing efforts are being made to activate the restricted bond markets, particularly treasury bonds, in the context of the increase in their trading to more than £ 500 billion.

He pointed out that this comes within the framework of the intensive efforts of the stock market management to support the market situation in general, with an attempt to solve more other obstacles, and intensified efforts to introduce the stock market to its trading to support and increase.

He added that the EGX administration had discussed an effort with the authorities to introduce expatriates to trading in the stock market, and said that meetings were held with the relevant authorities to increase the government’s institutional investment in the stock market in particular.

He stressed that these meetings were aimed at removing all obstacles, while simplifying all the requirements needed to increase the percentage of institutional investment in the Egyptian stock market, in line with all international practices that have been confirmed. that insurance and pension funds of the largest investors in the stock markets, and he continued: That this plan comes Within the framework of the Egyptian Stock Exchange’s plan to increase the volume of liquidity.

Mohamed Farid, Chairman of the Egyptian Stock Exchange, during his speech at the opening session of the Portfolio Egypt 2022 Conference

Hazem Sharif, editor-in-chief of “Al-Mal”, intervened after the end of the speech of the EGX chairman and wondered about the differences between talking about the revival of the market’s trading this time from previous times?

Dr. Mohamed Farid, Chairman of the Stock Exchange, replied that the difference this time is that we are talking in meetings with the government about the causes of these crises, and this has not happened before, noting that it is in addition to intensive meetings . to figure out the obstacles to increasing institutional investment.

The editor-in-chief of the newspaper Al-Mal returned to put another question to the president of the stock exchange about his expectations regarding the possibility of a breakthrough in the demand file in the stock exchange, and an increase in institutional investment, in addition to the date of implementation of the first government presentation in 2022?

Farid responded by emphasizing that the stock exchange is trying to remove obstacles one by one until there is a gradual improvement in this file, adding that the ministerial committee for the management of the listing program has been entrusted with the details of the potential to announce offers.

Prime Minister Mostafa Madbouly announced in mid-May that the government intends to list 10 companies on the stock exchange in the current year 2022, including 8 business sector companies and two companies affiliated with the armed forces.

Al-Mal published in the May 9 issue of last year that the government intends to list 10 companies on the Egyptian Stock Exchange during the current year 2022, within the framework of the directives of President Abdel Fattah Al-Sisi, President of the Republic, and its mandates to develop the capital market, according to statements by the Minister of Finance.

President Abdel Fattah El-Sisi instructed the government to present, on the sidelines of the Egyptian family’s breakfast party, an integrated vision for the promotion of the Egyptian Stock Exchange, and to start offering shares of state-owned companies.

The president also ordered the government to list companies owned by the Egyptian armed forces on the stock exchange before the end of this year.

The Minister of Finance revealed to Al-Mal a few days ago that the government is finalizing the drafting of the executive plan for the President’s mandates, to develop the capital market and to develop an integrated vision for the stock exchange. , and note that this plan will be disclosed as soon as it is completed.

It is noteworthy that in 2018 the government drew up a program of government bidding, which includes the bidding of 23 companies with a target revenue of £ 100 billion, but it has been postponed several times due to unfavorable conditions.

While an additional stake of the Eastern Tobacco Company was offered by about 4.5%, with a return of £ 1.7 billion in March 2019, in addition to the offering of 26% of the shares of “E-Finance” in October 2021, with a return that is the largest in the history of the stock exchange, with a value of 5.8 billion pounds, then an additional share was offered.From Abu Qir Fertilizers with 10%, with a return of 2 , 2 billion pounds.

The Egyptian Stock Exchange is expecting major proposals, including “Bank of Cairo” and “Enppi” and an additional share of “Heliopolis Housing” and the two petroleum products companies “Mobiko” and “Safi” for food products next to the “Alexandria Bank”. “

HamedMohamed Farid: We strive to eliminate obstacles one by one until gradual improvement takes place

The difference at the present stage is in talking to the government about the causes and looking for solutions.

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