Lack of liquidity represents EGX's 1st challenge: rami El-Dokany

CAIRO - 18 September 2022: Lack of liquidity represents the first challenge facing the Egyptian Stock Exchange (EGX), according to the Head of the bourse, Rami El-Dokany.

 

El-Dokany added, in an interview with Bloomberg Al-Sharq, that work is being done on four axes to increase the market value of the stock exchange and enhance its liquidity, represented by motivating government institutions with high solvency to pump larger sums into the stock market, and accelerating the program to offer shares from public sector companies in coordination with the government.

 

He also referred to conducting promotional tours in foreign markets, especially the Gulf ones, 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. 

 

Previously, Minister of Planning, Hala El-Said announced that Egypt plans to launch a program for proposals to raise $40 billion over 5 years.

 

The government aims to offer shares of 10 government companies in the Egyptian Stock Exchange before the end of June 2023.