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- EGX chairman: Developing the capital market from the value added chain perspective as a platform for finance and investment
- Farid: We are working rapidly to apply short selling and market maker systems to enhance liquidity and calming the market volatility
In order to effectuate the memorandum of understanding (MoU) signed by the Egyptian Exchange (EGX) with the International Finance Corporation (IFC) of the World Bank Group, last September, the two parties held on Thursday, a workshop for a group of companies in various economic sectors under the title ”Road to listing and offering in the Egyptian market and the disclosure requirements after listing”.
Through the MoU, the 2 parties aim to raise the companies’ level of knowledge about the listing and offering rules and advantages and to help them adhere to the best governance practices.
From his part, Mohamed Farid, EGX chairman, stated that EGX management has taken the responsibility to develop the securities industry from the value chain perspective; applied through the supply side support, the demand side stimulation and improving the trading mechanisms.
" In order to enhance and activate the disclosure process as a mechanism to attract foreign investments, EGX’ management has succeeded in increasing the number of listed companies that have been disclosed in English to 40 companies so far, compared to 25 companies before " according to Farid.
Farid said " We strive with all of the relevant parties to implement the mechanism of selling the borrowed securities " Shorts Selling " During the first quarter of next year 2019 " , expecting that the decision regulating the market maker will be issued within few days by EGX management.
EGX chairman stated during his participation in the workshop on Thursday that the international institutions and investment funds are making their investment decision according to the macroeconomic indicators stability. Egypt has succeeded in implementing an ambitious reform program from the liberalization of the Egyptian Pound exchange rate and restructuring of fuel subsidies, beside the big regulatory reforms including investment, bankruptcy and the capital market laws.
He pointed that listing in the stock exchange enables companies to start, grow, achieve targets and making them in the focus of the international investor interest, which would increase foreign and domestic investments that are the main entrance to increase production, provide jobs, increase incomes and improve the living conditions of the people.
In his speech, Farid said that raising the level of knowledge and financial awareness of the society and disseminating the financial culture is necessary for the capital market improvement and developing a conscious and financially educated generation reflected on trading and liquidity rates; moreover to use the stock market as a financing platform.
He stated that EGX is working in coordination with companies to raise their commitment to the governance and sustainability standards, specially in light of the growing investment institutions interest in companies that are more committed to those standards.
During the workshop, EGX leaders gave a presentation on the listing and public offering steps, including rules, procedures, benefits and documents needed for this purpose, as well as the disclosure requirements and adherence to governance standards in accordance with the best international practices in the post- listing phase.
