The Egyptian Exchange Chairperson Ahmed El-Sheikh stressed the importance of investment in the stock market as a vital step to preserve the financial value of savings.
Speaking at the second session of the program “Egyptian Cultural Institutions” under the theme “Invest Right,” at the “Diwan Al-Shoar” hall in the Cairo International Book Fair’s fifty-fifth edition, held from 24 January to 6 February, El-Sheikh highlighted the diverse investment opportunities offered by the stock market. He also emphasized the exchange’s commitment to promoting learning and diligence, especially with the increased ease of stock market investment through electronic applications.
El-Sheikh noted that the Egyptian Exchange has been participating in the book fair for the fourth consecutive year, aiming to raise awareness about its significance. He said that while traditional Egyptian investment thinking often leans towards gold and real estate, these assets have become less affordable for everyone due to their high values. In contrast, investing in stock market shares is open to everyone and can help savings grow.
He pointed out that unlike gold prices, which fluctuate based on factors like craftsmanship, stock prices on the exchange remain stable. This stability, along with the ease of buying and selling securities, makes financial instruments as secure as a bank account. El-Sheikh stressed that the Egyptian market is large and promising, representing the diversified Egyptian economy, with various sectors available for investment on the stock exchange.
He mentioned that companies involved in real estate or gold are listed on the stock exchange, providing opportunities for those interested in these sectors. He also acknowledged that, like any investment, there are risks associated with stock market investments.
Mohamed Marjawi, the Managing Director of MI Capital, stated that there is no minimum limit for investing in the stock market. Individuals can start investing with any amount from their income through financial portfolios on the stock exchange. He emphasized that buying shares in small amounts initially helps increase individual savings. He added that the use of digital applications has greatly facilitated personal investment management.
Hani Suleiman, the Managing Director of Mubasher, mentioned that many large companies are ready to manage individuals’ stock market investments, either through securities or portfolios, making it accessible even for those with limited time.
Mohamed Kamal, the CEO of Pharaonic, explained that the main index of the stock exchange (EGX30), commonly heard of, measures the performance of the top 30 companies in the market, serving as a guide for overall market movements.
He described speculation as individuals entering the market, buying a specific stock at a certain price, and selling it as soon as it rises.
Omar Hussein, the CEO of Arabia Online, highlighted that returns from bonds are fixed and paid in advance, making them a safe investment. He emphasized the importance of dealing with companies that are knowledgeable in analyzing financial market movements if returns are lower than inflation, as it means a decrease in the value of savings.
Ahmed Sayed, the Managing Director of Faisal, viewed the stock exchange as a market like any other but more organized and professional. He suggested that dealing in the stock market does not require specialists since agents and companies can be hired to manage investments.
