Petroleum companies are at forefront of attractive sectors in Egyptian Exchange: El-Molla

Daily News Egypt
5 Min Read

Minister of Petroleum and Mineral Resources Tarek El-Molla discussed with Ramy El-Dokany, Chairperson of the Egyptian Exchange (EGX), and the heads of the petroleum sector companies listed on the Egyptian Exchange, cooperation in implementing mechanisms to enhance trading for the shares of the sector’s companies listed on the stock market, given that oil and petrochemicals are at the forefront of the sectors that attract Arab and foreign investors.

El-Molla stressed the importance of cooperation with the Egyptian Exchange in exploiting all opportunities and employing the competitive advantages enjoyed by the petroleum sector companies listed in the stock exchange in an efficient manner, which helps to increase their attractiveness to investors and enhance the value of shares in line with the great development in the companies’ performance and then maximizing the returns from the shares listed for oil companies in favor of the Egyptian economy, especially since the oil and petrochemical companies have demonstrated through their strong performance in the stock exchange in recent years their high competitiveness and that they can offer more during the coming period.

The minister directed to strengthen cooperation with the stock exchange during the coming period to develop the performance of investor relations with companies and to apply all models and rules that help in effective marketing of companies listed on the stock exchange and to show their advantages to achieve greater success.

He added that the importance of this approach will multiply during the coming period, with the tendency to offer new shares of a number of petroleum companies during the coming period within the program of government offerings on the stock exchange, which necessitates the existence of mechanisms that help achieve trading and the expected demand from investors, which helps the success of these offerings and achieve their goals.

Ramy El-Dokany, Chairperson of the Egyptian Exchange, said that the petroleum and mineral wealth sector contributes to supporting and serving the national economy by meeting the needs of the local market for petroleum products, petrochemicals and mineral resources, achieving the targeted growth rates for the sector and contributing to achieving the targeted growth rates for the national economy, as well as transforming Egypt into a regional centre for energy trade and circulation.

He pointed to the efficiency and effectiveness of the sector in achieving its export targets and its emergence as an important and vital source of foreign currencies, and the reflection of all this on the strong financial indicators of the sector as a whole and its listed companies.

He stressed the importance of the petroleum sector’s contributions to activating the trading activity on the Stock Exchange and his desire for the positive performance of the sector, the quality of its financial indicators and the good growth in profits to be reflected more on the trading movement of the shares of its listed companies.

He stressed the importance of clarifying the strategic plan for the officials of investor relations in the listed companies and working to increase the proportion of free-floating shares in some companies, which confirms the importance of developing the tasks and capabilities of the investor relations departments in these companies through several axes, including creating more transparency and communication with all parties to the capital market. 

He pointed out that the stock exchange is keen to identify the challenges facing the investor relations officials and help them solve them in order to maximize the role of the sector and its ability to attract various groups of investors. Continuing to improve the system of investor relations with companies whose securities are listed and their money is of importance in light of the development of means of information circulation as well as legislative and regulatory changes, which helps to achieve a better image of the listed companies and thus attract investments and create a better climate for investors.

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