EGX Meets Market Participants To Present EGX’s Efforts For The Development Of The Egyptian Capital Market

The Egyptian Exchange (EGX) held a meeting with representatives from the Egyptian Capital Market Association (ECMA), Egyptian Private Equity Association (EPEA), and Egyptian Investment Management Association (EIMA) as well a number of capital market investors to discuss present market performance.

Mohamed Farid, EGX chairman started the meeting by presented EGX’s board measures taken addressing the value chain elements; the supply side, demand side as well as the trading and technology environment.

He added that all measures were undertaken to achieve the value chain objectives. Adding that all decisions were taken after extensive study and after discussions with market participants. For example, measures taken to activate the market; cutting circuit breaker trading halt time two times to enhance trading environment, same day trading, allowing new IPO shares to be added to specialized activities records once they comply with the required standards, and introducing new financial products as short selling and market maker. Farid added that the activation of these new tools is an important role of the brokerage firms.

Also the auction system was reviewed with market participants through a comparative study with the other markets, such study aimed to increase the turnover ratio increasing securities trading.

From the supply side, he stated that "our primary goal is to raise the quality and efficiency of disclosure”. Adding that a new department dedicated to analyze corporate financials with the aim of enhancing disclosures will ensure that the investor obtains credible information.

In addition, a new system named CRM “client relation management" has been launched in order to identify the companies from various economic sectors that are illegible to list in EGX, as well as inform them of its advantages. EGX management was able to contact more than 150 companies in this context.

From the demand side, Farid stressed on the importance of communication as a vital element in the progress of the Egyptian capital market. He added that the EGX website has been developed. Similarly, he further highlighted the upgrade of the workshops and educational lectures conducted for university students and employees, which are the key channels of communications with the public. Moreover, it was stated that EGX’s management played a vital role in the settlement of disputes, such as the Global Telecom dispute case.

Farid concluded that EGX is always keen to cooperate with all market participants for the development of the Egyptian market.

For their part, participants in this meeting stated that the timing was very important to discuss all raised issues and review efforts of EGX in the development of the market.