Several government officials throughout 2022 have said that the state is looking to offer shares in 10 state and military-owned institutions, however the plan continues to be delayed due to market conditions
Lack of liquidity represents the first challenge facing the Egyptian Stock Exchange (EGX) explained Rami El Dokany, the recently appointed new head of the EGX.
In an interview with Bloomberg’s Al-Sharq, El Dokany pointed out that work on four axes have already begun, focusing on boosting the EGX’s market value and boost liquidity.
This is represented by stimulating government institutions with high financial solvency to inject larger investments into the stock market, as well as facilitating the government’s privatization plan to offer shares of public sector companies.
Several government officials throughout 2022 have said that the state is looking to offer shares in 10 state and military-owned institutions, however the plan continues to be delayed due to market conditions.
The EGX head also revealed that the EGX is to conducting promotional tours in foreign markets, with particular interest in the Gulf, and finally introducing new products such as short selling and trading carbon contracts.
Selling is the process when an investor borrows a security and sells it on the open market, planning to buy it back later for less money, while a Carbon Contract is a contract by which a government or institution agrees with an agent on a fixed carbon price over a given time period.
Concern over the US federal reserve raising US interest rates during their upcoming meeting later this week contributed to the EGX plunging today which lost EGP 17.71 billion in market capitalization.
