H.E. Dr Mostafa Madbouly, Egypt’s Prime Minister, participated in the opening with the presence of a number of ministers and 250 Egyptians, Arabs and foreign investors representing 100 international and regional investment institutions with assets of about USD 5 trillion.
During his participation, Mr. Mohamed Farid said that EGX indices have responded positively to the economic reform program adopted by the government since mid-2016. The reform program included the legislative, monetary and financial framework reforms, which contributed in achieving a high stability levels in the macroeconomic indicators and in enhancing the role of the private sector.
Mr. Farid pointed out that EGX saves no effort to develop and enhance the Egyptian capital market from the perspective of a value chain in order to raise the market’s efficiency and competitiveness through developing the demand side, supply side as well as improving the trading environment.
Concerning the supply side, EGX extends its efforts to improve all what it offers to investors, and enrich the quality of disclosures (Arabic and English). It also launched a new system to improve communication and follow-up with potential companies for listing; this is parallel to raising awareness about the role of stock exchanges as a long-term savings tool. It also highlighted that EGX is not limited to the rich or the professionals to strengthen the demand side.
In addition, EGX works to develop the trading environment by adding new products and financial instruments that contribute in diversifying the investment options for all investors. The latest activity is the market maker, which decision was issued in 2007.
Mr. Farid added, “We are working to improve communication with listed companies to improve quality of disclosures. We have established a follow-up section and financial disclosure department that coordinates with companies to meet investor needs”. Adding “The number of companies that discloses in Arabic and English has jumped to 56 by the end of 2018 compared to 23 in 2017”.
EGX Chairman said that many workshops were organized between the listed companies representatives, financial analysts, and research officials of the brokerage firms to consult on the business model of these companies and to activate trading on those shares.
Mr. Farid added that EGX plans to establish a derivatives marker and commodity market as well as the implementing new mechanisms, including the short selling.