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Marketers hold high hopes for the government program from 18/2019 to 21/2022, under the title "Egypt launches" to support the start of the business and attract more proposals and attract a variety of Investors and institutions Stock market experts and investment banks pointed out that the stock market is one of the main beneficiaries of the state's guidance for the next four years, from As much as it is the true mirror of investors and foreign institutions. Increase the liquidity rates, v
The experts concluded that the capital market currently benefited from a number of supporting factors in order to attract more investment, to increase liquidity and increase its funding role, the most important being the program of government proposals to be implemented. To restructure public enterprises and support their future projects, Parliament has adopted amendments to the Capital Market Act, which will help to activate new financial instruments, including the exchange of contracts and products. derivatives.
The experts pointed out that maintaining the state and the government in implementing reform programs at all levels would strengthen the bond of trust between investors and financial institutions and their desire inject more direct and indirect investment. Radhi El-Helou, managing director of Investment Bank, Arqam Capital, Egypt, said that maintaining the government's seriousness in implementing the financial and monetary reform program is a clear signal. Foreign direct and indirect politics.
emphasize the need to implement the Central Bank's policy of expansion and the gradual decline in interest rates, after controlling the inflation rate, by increasing the dependence on with respect to hydrocarbons; In light of the growth of attractive investment opportunities in all sectors, especially sectors associated with high population density and the nature of consumption.
The policy of progressive and effective subsidy removal was aimed at reducing the budget deficit, especially in the energy sector, explaining that social justice and support for its beneficiaries were one of the main pillars of the budget. current period.
helped to strengthen and support the Egyptian market recovery opportunities in the next phase, supported by the availability of investment opportunities and the decline in the market value of most assets and liabilities. sector diversification. External to the market in general and the stock market in particular. "The stock market is one of the biggest beneficiaries of the current economic reform plans that will contribute to the flow of more foreign investment that will recycle liquidity," said Mahmoud Salim, head of banking services for the country. investment of HC Securities & Investment. Market and its activity.
and explained that the government is making great strides in the right direction of economic reform to strengthen its position as a global investment center, supported by the market's ability to reap the positive medium and long-term effects . "The IMF program and the positive ratings of the external rating agencies are a certificate of confidence in the measures taken by the government during the last period and are still seeking to complete them," he added. Current
In the same context, he points out that the Egyptian market is currently enjoying increasing opportunity in several vital sectors, including sectors with more than 100 million people, and that Egypt is historically a production center for the Middle East and Africa. Given the low cost of production and logistical capabilities it enjoys. Ehab Said, member of the Stock Exchange Board of Directors, stressed that his management strategy was based on the activation of new tools such as derivatives and futures contracts, speeding up the translation of the reform program. and make profits.
and the decision of the General Financial Supervisory Authority to activate the securities lending mechanism for sale and the role of this mechanism to reap the benefits of the reform programs and support the l & # 39; 39 market developments in terms of exchange values and external flows. Excellent and excellent first class volumes and trading values on the stock market in the medium term.
concluded that this mechanism is part of the market strategy aimed at increasing the market by diversifying the base of available financial instruments, in order to attract more dealers, especially in rebound periods, which confirms the ability of this mechanism to balance transactions and liquidity. . He pointed out that the Egyptian market is currently one of the most important markets for investors and foreign institutions, supported by a series of legislative changes and the adoption of the Capital Market Act which will contribute at the effective start of the market.
Government Proposals
Noha al-Ghazali, Managing Director of Pharos Investment Bank, confirmed that ongoing economic development and reform programs, in particular the government's proposals program, directly promote Egyptian enterprises and re-evaluate foreign investors. Investor base by increasing the number of shares traded to cover all sectors of investment. The contribution of these proposals should support the vision of foreign foreign institutions and increase the attractiveness of the market for investment funds. The new proposals, governmental or private, are considered the password to increase the depth of the market and increase the current volume of liquidity by supporting and increasing the customer base and the influx of external institutions to take advantage of benefits of these new proposals. According to the future plans of these companies.
The overt interest of foreign institutions and funds underscores the ability of the stock market to cover all new subscriptions and proposals, to provide funding and liquidity needed to restructure businesses and support its plan. expansion by strengthening its role as the main funding channel.
Acquisitions
With regard to acquisitions, Yasser Hashem, executive partner of Zaky Hashem Legal Consultancy Office, predicted the continued activity of acquisitions in the Egyptian market to support the opportunities for acquisitions. increasing investment in most sectors. The liberalization of the exchange rate, which represented a major step to unify the price and remove the main obstacle behind the postponement of a large segment of investors of their decisions on the Egyptian market. He pointed out that the structural changes observed by the Egyptian market at the economic and legislative levels have led to a strong market recovery and the consolidation of the bond of trust between all categories of investors.
In the same context, he underlines that the Egyptian market, supported by current and ongoing reform programs, can double the volume of foreign direct investment in parallel with the size of the investment opportunities available in various sectors. , especially the export sectors. The legislative revolution observed at the end of the period created a more fertile investment environment for more local and foreign investment, including amendments to existing laws, particularly the Capital Market Act. which brings the beginning of the stock market. Reform, as well as company law and bankruptcy law, as well as investment law, is a major step towards facilitating procedures and removing bureaucratic and bureaucratic constraints.
The fruits of the first phase of reform
The Egyptian stock market has reaped the benefits of the early stages of the reform program through the liberalization of the exchange rate, thanks to the success of the share capital of the shares restricted to the domestic market gains of 497 billion The EGX30 index has increased by 95% over the same period to close at 16349 points at the end of June 2018 against 8386 at the end of June 2018 against 413.425 billion at the end of October 2016. [19659003] Point to the end of October 2016.
On the other hand, the index has increased (EGX70) by 133% to close at 805 points end of June 2018, against 345 points end October 2016.
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