FRA agrees with CBE to establish fund to support liquidity at EGX

CAIRO – 24 March 2021: The Egyptian Financial Regulatory Authority (FRA) reached an agreement with the Central Bank of Egypt to establish a fund to finance financial brokerage companies, in order to increase the volume of liquidity on the Egyptian Exchange (EGX).

The fund also aims at the entry of new investors, in addition to increasing the solvency and financial capacity of current investors.

The authority said in a statement to the EGX, Wednesday, that this is within the framework of the role that the Central Bank of Egypt plays to support markets, including the stock exchange, in an effort to stimulate trading volumes on the stock exchange.

Chairman of the FRA Mohamed Omran explained that the Central Bank of Egypt is always working to support and sustain markets, and that there is increasing interest in the role of the stock market in supporting the economic development plans in the Egyptian state.

Omran indicated that this trend comes from the belief of the Central Bank of Egypt in the necessity of creating an investment climate and revitalizing the stock exchange by working to grant financing to financial brokerage companies through this fund.

The head of the authority praised the continuous initiatives undertaken by the Central Bank of Egypt to support the markets, as well as the continuous coordination and cooperation between the two sides.

During Tuesday's session, the benchmark EGX30 decreased 0.63 percent, or 65.86 points, to end at 10,471.36 points.

The equally weighted index EGX 50 dipped 3.47 percent, or 69.09 points, to end at 1,923.19 points.

The small and mid-cap index EGX 70 declined 5.10 percent, or 97.86 points, to close at 1,822.3 points, and the broader index EGX 100 lessened 3.72 percent, or 105.74 points, to close at 2,739.6 points.

Market capitalization lost around LE 7.56 billion, recording LE 633.65 billion, compared to LE 641.22 billion in Monday’s session.