Dr. Mostafa Madbouly, Prime Minister, in a meeting held last night, continued efforts to promote to attract more investments to the Egyptian capital market, in the presence of Hassan Abdullah, Governor of the Central Bank of Egypt, Dr. Hala Al-Saeed, Minister of Planning and Economic Development, and Dr. Mohamed Moait, Minister of Economic Development. Finance, Dr. Mohamed Farid, Chairman of the Board of Directors of the General Authority for Financial Supervision, and Ramy El Dokani, Chairman of the Egyptian Stock Exchange.
Dr. During the meeting, Mohamed Farid reviewed the most prominent decisions and measures taken by the Financial Regulatory Authority since he was assigned responsibility last August, whether related to measures contributing to the revival of the Egyptian Stock Exchange in particular, or not -bank financial activities in general.
Regarding the efforts made to develop and revive the performance of the Egyptian Stock Exchange, Dr. Mohamed Farid refers to a number of measures that have been taken, including the approval of additional amendments to the listing rules to procedures in the implementation of the recommendations of the Economic Conference; Including facilitating the procedures and requirements for the acquisition of unregistered companies by listed companies to promote the growth of companies through the capital market and achieve their financial and operational objectives.
Farid explained that the executive rules were adopted to settle the operations on the bonds of companies listed on the stock exchange in the same trading session. In order to reduce the cost of trading on bonds and activate the secondary market for bonds, the stock exchange proposal was also adopted to fix transactions by selling what was bought and buying what was sold, in order to ensure the stability of the market. retain. protect the bona fide investors.
He touched on the prime minister’s decision to amend some provisions of the executive regulations of the capital market law to facilitate the work of investment funds and efforts to achieve sustainable development goals by regulating the process of issuing various types of sustainability bonds that are consistent with international tendencies.
He added that discussions were held with the Minister of State for Immigration and Affairs of Egyptians Abroad; To increase investment opportunities for Egyptians abroad in the stock exchange, as part of the Authority’s efforts to raise the levels of awareness and financial knowledge of Egyptians abroad on how to invest and save through the stock exchange, and to benefit draw from the Authority’s services, including insurance and other financing activities.
Regarding the measures taken in the context of the promotion of a number of non-bank financial activities, Farid explained that the first license to practice microfinance activities was issued, according to Islamic financing formulas, as part of the authority’s effort to maximize the development impact of all its financing activities and services in support of economic growth A Community dialogue with all professional associations and federations to consult on how to develop non-bank financial markets within the framework of the authority’s emphasis on the importance of the principle of partnership for development and stability and the achievement of the sector’s objectives to play a greater role in supporting the growth of the national economy.
He added that it was approved to issue securitization bonds worth half a billion pounds for one of the consumer finance portfolios as part of the authority’s efforts to diversify financing solutions that support economic activity, and 3 issuances of securitization bonds worth 23 billion pound was approved. the largest in the history of the authority, which increases the importance and capabilities of the non-bank financial sector in providing major financing solutions that support economic growth.
During the meeting, Ramy El Dokani, chairman of the Egyptian Stock Exchange, indicated that the main index EGX 30 has risen by 32.8% since the beginning of August; Accompanied by an increase in the average daily turnover to 1.6 billion pounds. The EGX70 index also rose by 30% in the same period.
He added that the decision to liberalize the exchange rate and the announcement to reach an expert-level agreement with the International Monetary Fund led to an increase in average daily trading during the month following the decision, and emphasizes that the listed shares enjoy high profitability ratings. with great potential for growth.
Al-Dokani reviewed the results of the promotional tours for investing in the Egyptian Stock Exchange, and the first promotional tour took place in Abu Dhabi and Dubai during the period from October 18 to 21, 2022, as the visit aimed to reach the largest number . of investors and investment funds and seek their opinion on the market, noting that the promotional tours will be intensified during the stage.
He also touched on efforts to coordinate with the state authorities involved in the government’s offering program, indicating that the new offerings will lead to an increase in liquidity rates and the attractiveness of the market for investors, as well as achieving the greatest degree of stability in the market, and emphasizes the importance of increasing institutional investment flows to shares listed on the stock exchange.
He reviewed the efforts to activate and reactivate trading mechanisms to increase the ability of investors to hedge investment risks, as well as the efforts made to make the stock exchange a preferred destination for individual investments. The main trading company for carbon certificates in the African continent.