Mohamed Farid — Chairperson of the Board of Directors of the Egyptian Exchange (EGX) — said that the government’s proposal to offer more of its companies through initial public offerings (IPO) is a good catalyst for reviving the EGX during the current period.
He added, during his speech at the opening session of the Portfolio Egypt 2022 Conference, that the Egyptian market is currently under a lot of pressure due to many global and local crises.
Farid also pointed out that the current crisis is similar to the global recession that occurred in 2008, noting that increasing supply is a good solution for dealing with it.
Furthermore, he said that work is be continuously done to activate the restricted bond markets — especially government treasury bonds — given that their trading value has increased to more than EGP 500bn.
He also pointed out that this comes within the framework of the intensive efforts of the EGX’s management to support the market situation in general while trying to remove obstacles.
Additionally, Farid said that the EGX’s management has discussed with the authorities an attempt to introduce expatriates to trade in the stock market, saying that meetings were held with the concerned authorities to increase government institutional investment in the stock market in particular.
He stressed that these meetings aimed to discuss removing all obstacles while simplifying all procedures to increase institutional investment in the EGX according to international best practices that confirmed that insurance and pension funds are among the largest investors in stock markets.
He added that this plan comes within the framework of the EGX’s plan to increase the volume of liquidity.
