EGX and the Federation of Euro-Asian Stock Exchanges (FEAS) chairman reviewed the features of the board of directors’ current plan, which aims at deepening and increasing the efficiency of the market by diversifying investment tools while offering new tools and products to investors.
EGX Chairman mentioned that the capital market has responded to the reforms that the management implemented, especially the macroeconomic reforms. The net foreign purchases since November 2016 surged to EGP 25 billion, compared to EGP 1.6 billion during the same period before the currency flotation; it is an increase exceeding the 1000%, worth EGP 23.4 billion. The net foreign purchases during the first quarter of 2018, “January-March” soared to EGP 8.7 billion, compared to EGP 3.1 billion in the fourth quarter of 2017 “October-December”. The average daily trading after November 2016 recorded EGP 1.6 billion compared EGP 530 million before November 2016 with an increase of 200%.
Egypt is ready to receive investments due to unprecedented courageous reforms. These reforms has not been expected for the past 60 years, including the radical structure of the subsided goods system and the currency floatation, “no return to the previous methods,” according to Farid.
Farid said that investors now perceive Egypt as a future opportunity, which is demonstrated in the immense activity of the stock exchange. The Egyptian economy has been in need for a strong boost. We believe in the future to overcome the difficulties that the economy has suffered in the past. Opportunities are great for all large, small and medium enterprises.
Farid stressed on the importance of the economic diversification in the Egyptian market, as many sectors contribute to the economic development and stability, which is reflected on the recent recovery, where the economic growth raised by 5% during the first and second quarters of the current fiscal year.
Moreover, the International Monetary Fund raised its forecast for Egypt’s economic growth to 5.2% by the end of June 2018, instead of 4.2%.
In conclusion, Farid said that the program of expanding the ownership base of state-owned companies through the stock exchange would contribute to raising awareness of the role of the stock market as a financing tool for investments to achieve sustainable growth.