The Managing Director of Bloom Securities Trading Company, Mohamed Fathallah, said in an interview with Al-Arabiya channel that the Egyptian Stock Exchange is currently witnessing a trend of liquidity from the stocks of small companies to their large counterparts.
Fathallah explained that this trend is due to the fact that most of the upcoming deals in the coming period are due to the shares of EGX30 index companies, adding: “The shares of large companies attract foreign investors, as they provide them with a larger market when they want to reap profits and exit, which is what these shares provide.” Where you sell deals.
And the Egyptian Stock Exchange achieved gains of more than 23% since the beginning of this year, so that the main index closed today, Sunday, at the highest level of 18 thousand points.
Egyptian President Abdel Fattah El-Sisi ruled out devaluing the Egyptian pound against the dollar, saying that “many people are asking for flexibility in the exchange rate and we are flexible in it, but when it comes to national security and that this will waste the Egyptian people, no.”
The managing director of “Bloom” company added that many investors, with the start of floating the Egyptian pound against the dollar, tended to invest in gold, the stock market and bank deposits to seize the high interest, which supported their prices in previous periods, but I do not think that the opposite is true.
Fathallah indicated that there has been a decline in the exchange rate in the parallel market, but not to a significant extent, and we need more time for prices to return to the target.
He continued, “I do not think that the decision of the Monetary Policy Committee of the Central Bank of Egypt will carry any surprises, and we believe that fixing the interest rate in Egypt is the best solution to revive the economy.”
With regard to the acquisition of Orascom Financial Holding Company by B Investments Holding Company, Fathallah said that it is a profitable deal for Orascom shareholders.
B Investments Holding Company submitted an offer to acquire no less than 51% and up to 90% of Orascom Financial Holding, through a share swap between the two companies.
The parties to the contract agreed to adopt a swap coefficient to implement the compulsory purchase offer at the rate of 1 share of B Investments Holding shares in exchange for 56.76 shares of Orascom Financial Holding Company shares, provided that B Investments increases its capital for the benefit of the second shareholders who may respond to the offer.
