Mr. Omar Radwan, EGX Executive Chairman, participated in a panel discussion at the annual conference of Middle East Investor Relations Association (MEIRA) in Dubai. He highlighted the record leaps achieved by the Egyptian Exchange and its main indexes that recorded unprecedented historical levels, supported by the strong volume and values of trading. He also reviewed the rapid developments in the market performance following stability of the macroeconomic indicators and the gradual return of institutional investment and international investment funds.
During the discussion, Mr. Omar Radwan pointed to EGX direction towards diversifying asset categories and updating the trading environment to meet investors’ requirements. He added that currently we are working to activate short selling mechanism, besides future contracts and options in the derivatives market. In addition to activating the role of market maker to minimize the gap between bid and offer prices, and improve the depth of trading.
Omar Radwan emphasized that EGX is continuing its intense efforts to attract new foreign investments, supported by the strength of the Egyptian economy and its high ability to absorb global shocks and fluctuations. This is reflected in the growing interest of foreign funds, and investors seriously considering accessing the Egyptian market and injecting new capital investments, supported by keeping our position within “Emerging markets” in S&P Dow Jones and improvement of our position in other international indicators, which boosts international institutional trust in the efficiency of the market and its stability.
In a related context, EGX Executive Chairman, Omar Radwan, pointed to the role these modern financial tools played, in conjunction with the recent packing of tax facilities, which included simplifying the stamp duty tax and reducing the tax burdens on non-residents. Besides granting exemptions and investment incentives especially for newly listed companies to reduce funding costs and attract liquidity.
He also mentioned the importance of the ongoing cooperation with Micro Small Medium Enterprises Development Agency (MSMEDA) and the program of supporting start-up companies, in which EGX focuses on promising projects and the transition of rapidly growing companies from SMEs platform to the main market, broadening investment base and bringing new economic segments into official financing channels.
Omar Radwan concluded his speech pointing to the impact of these structural steps on the trading indicators, as the capital market value exceeded EGP 4.3 Trillion, while the daily trading averages reached about EGP 10 Billion. This provides the market with an ability to handle large offerings with minimal effect on prices, supporting its readiness to welcome expected companies within the offering program, like Bank of Cairo and Misr for life insurance. Besides the private sector offerings in fields related to exportation activities, and services like health care, financial, and logistical services.
