EGX Chairman, Mr. Mohamed Farid, held a meeting in Abu Dhabi last Tuesday with representatives of 19 regional and international financial institutions in a step that ensures EGX management dedication to develop relations with various companies and investment institutions to enhance communication and cooperation with them.
EGX Chairman presented to the investors the bold economic reforms the Egyptian government adopted. The international financial institutions from their side praised the plan which was the reason for the initiation of foreign investment cycle; foreign institutions started by investing in short-term debt instruments followed by their interest in long-term debt instruments and direct foreign inflows in various economic activities.
EGX Chairman said, "The structural amendments made at the monetary, financial, investment and legislative levels will be the main catalyst behind the return of foreign direct and long-term investments to sustainable economic growth to improve people's living conditions".
He also praised the role the investment funds play in raising the investment flows to Egypt, whether directly and indirectly. He looks forwards to attract more investments to the stock exchange through to the government IPOs program. Moreover, Mr. Farid expects that EGX will receive about 5 IPOs worth about EGP 25 billion, as well as the government's intention to offer additional of 9 listed companies and to listing 14 governmental companies with a total value of EGP 80 billion.
Additionally, he pointed out that the activation of the government program to expand the ownership base of its companies through EGX will support the market by diversifying the supply side leading to the rise in the trading volume. It will also improve the competences of these companies to comply with the corporate governance and will allow the government to follow up on their performance.
Farid added that EGX priorities is based on three main pillars; the first is to attract new companies to list, the second is to improve the trading environment through the introducing and activating new financial instruments and products. The third is to increase the channels of ??communication with domestic and international financial institutions.
"He highlighted the significant coordination with FRA to diversify investment options for all investors’ categories. This will be through activating and applying more financial instruments and products," said EGX Chairman. "It accommodates customers' needs and deepen the market and raise its competitiveness”.
EGX Chairman praised FRA’s fast approval on the proposals presented by EGX Board of Directors to support trading and liquidity. This includes the approval on the amendment of the auction unit to be one in a thousand of the local Currency (EGP) or foreign currency of the listed security that is value is less than EGP 2 or any other currency. Additionally, working on the lists of specialized activities starting from the next working day to announce those lists with a two months deadline when excluding securities from the lists.
In addition, other proposals were approved, such as the widening of the price limits and the temporary trading halt to be at a % change 20% per day as a cumulative rate during the auction session and the official trading session. Moreover, reduce the limits of the temporary halt to be at 10% instead of 5%. The halt time falls from 15 minutes to 10 minutes max.
FTSE Mondo Visione Exchanges Index:
EGX Chairman Meets Representatives Of 19 Regional & International Financial Institutions In Abu Dhabi
Date 24/09/2018