Mohamed Farid, the chairperson of the Egyptian Stock Exchange (EGX), said that the Egyptian capital market still enjoys a strong legislative structure and advanced financial instruments.
Farid said that EGX’s strategy includes developing the conditions of listed companies and modernising the trading mechanisms in addition to providing investors with professional mechanisms, where the management of the EGX focuses on the quality of companies, not just on the number of new companies.
During a conference organised by the Egyptian Association for Direct Investment and the Association of Graduates and Trainees of Britian in Egypt (AGTBE), a forum was held in the presence of 100 investment experts and representatives of the major investment institutions in Egypt and graduates of British universities in Egypt.
There are current preparations to offer a number of new mechanisms, such as short-selling in addition to several new financial instruments, such as derivatives.
During his speech, the chairperson of the EGX stressed the importance of re-promotion for the EGX as a platform to finance the growth of companies and of small and medium-sized enterprises (SMEs) and not just to be considered a mechanism for an early exit.
Mahmoud El Sakka, the chairperson of the AGTBE, expects the upcoming period to witness several new offerings of some companies, especially those for which banks offer advisory services.
Abdallah El Ebiary, the chairperson of the Egyptian Association for Direct Investment, said that the capital market is considered a main partner in direct investment institutions, thanks to the way of exiting it offers from investments in terms of direct investment funds.
Mohsen Adel, the vice chairperson of the EGX, stressed that the securities market is not only a way to exit or transfer ownership, but also a way to obtain funding for growth purposes.
Adel said that the management of the EGX is working on developing a new market and enhancing debt instruments, such as sukuk.