The Egyptian Businessmen’s Association (EBA) Chairman, Eng. Ali Eissa, held an extensive open discussion with Mr. Omar Radwan, EGX Executive Chairman, to discuss developments of the economic scene, performance of the Egyptian stock market, and the latest regulatory and technical updates. Besides reviewing the unprecedable records recently achieved by EGX, supported by the increased trust of investors and expanding the base of market’s participants.
The meeting marked the presence of a group of the association’s board members with the attendance of: Eng. Ali Eissa, EBA Chairman; and Eng. Magd Eldin ElManzalawy, Secretary General and Head of Industry and scientific research committee; Dr. Mohaned Taha Khaled, Treasurer; Mr. Maged Ezz Eldin, Head of the finance committee; Dr. Farouk Nasr, Head of Tourism and civil aviation committee; MP Adel lamie, Board member, Parliament Member and Head of transportation committee; Mr. Hussein Lotfy, Head of environment committee. Also Dr. Dalia ElSawah, deputy head of SMEs committee and EGX board member, attended the meeting along with selected group of capital market and investment experts as well as leaders of business community from members of the association.
During the meeting, Omar Radwan replied on the questions and inquires of the attendees. He pointed out that the market capitalization increased to surpass EGP 4.3 trillion, while the average daily trading volume recorded historic levels approaching EGP 10 billion. He emphasized that these indicators reflect depth of market’s liquidity and its attractiveness to local and foreign investments.
EGX Executive Chairman discussed the latest updates of the government offerings program, being the key driver of attracting institutional local and foreign liquidity. He highlighted that EGX is ready to handle the expected major offerings, Banque du Caire and Misr Life Insurance. He pointed out that listing and offering of these leading entities will diversify investment options, expanding the base of ownership and give a strong boost to trading activity, increasing EGX’s market capitalization.
EGX Executive Chairman reviewed the recent package of facilities and tax incentives decided and applied to support the financial market and encourage trading. He clarified the impact of switching into simplified relative stamp duty tax instead of capital gains tax, to reduce burdens and facilitate transactions for investors, reducing the stamp duty tax for non-residents to achieve balance and fairness. Besides, exemption of Market Maker activity to support liquidity levels, and offering special tax incentives including investment deductions for companies that list their shares on EGX, to encourage new offerings and expand the base of ownership.
The meeting also included presentation of the benefits of listing of companies on EGX, being the primary platform for providing long-term funding and supporting expansion plans and corporate governance. Besides, reviewing the best investment mechanisms and strategies, as well as the latest offered financial products currently being activated, foremost is the financial derivatives market and the restructuring of short selling mechanism to enhance liquidity and market depth.
During the meeting Eng. Ali Eissa, EBA Chairman, highlighted the strong historic relationship between EBA and EGX. He stressed on the serious desire to develop and strengthen the ways of cooperation between the business community and EGX, based on the belief of the association in the pivotal role played by EGX as an important and primary platform for finance and growth.
This support comes from the innovated financing mechanisms provided by EGX, which help companies to expand and increase its capital attracting local and foreign investments. EBA Chairman also emphasized that this cooperation will contribute to enhance transparency and governance, boosting market efficiency, and creating sustainable attractive investment environment serving the national economy and benefiting the Egyptian business community and all relevant parties.
The meeting wrapped up by reviewing the efforts of enhancing cooperation with global exchanges, and the impact of international market movements and foreign investment flows on EGX.
