Ahmed Nashi, Director of the Research Department of the Investment Financial Credit Company for Securities Trading, said that the main index of the Egyptian Stock Exchange, EGX30, since the beginning of this year has moved in a largely horizontal range, due to the absence of economic incentives related to offerings and changes in the exchange rate, which made investors turn largely to small stocks. Medium and medium in search of better returns, especially since these stocks do not need large liquidity to show large price movements.
He added in an interview with Al-Arabiya that most of the investors in the Egyptian Stock Exchange in the current period are individuals who always prefer short-term deals, and this environment is most suitable for dealing with fluctuations in the “EGX70” index, which gives it an advantage for investors.
He explained that the capital increase of Beltone was one of the factors affecting the activity of the “70s” index on the Egyptian Stock Exchange, because its companies need less liquidity and individuals can achieve faster returns through significantly lower daily trading, unlike the leading stocks.
He pointed out that as long as the important economic stimuli and the movement in the cross-band of the main index are absent, individual investors will continue to resort to medium and small stocks because it will bring them better returns on their capital at the present time because fluctuations are the best environment for individuals to achieve returns, and therefore expectations indicate a continued rise EGX70.
The government has stated more than once its intention to sell a number of companies, including “Safi” and “Tanya” belonging to the National Service Projects Authority of the Egyptian Armed Forces, along with other companies, and to achieve a proceeds of two billion dollars by the end of this month, according to Nashi.
He referred to reports about the interest of Gulf companies in the Egyptian “Safi” and “Tanya” companies, and expected the start of serious negotiations to sell Egyptian companies to strategic investors to achieve the target amount of foreign exchange.
He said, “I think that the only obstacle to completing the process of selling companies is the exchange rate of the Egyptian pound, as some investors see the possibility of waiting for a longer period until a new devaluation of the pound to achieve more profits on their capital, and that point will be the subject of negotiations between the government and strategic investors during the coming period.” “.
He expected the government to succeed in achieving its goal of collecting two billion dollars from selling stakes in companies before the end of this month.