Omran showcases EGX achievements during his 4-year tenure

CAIRO – 30 July 2017: The Egyptian Exchange (EGX) Chairman, Mohamed Omran, reviewed the EGX’s achievements during his tenure, from 2013 to 2017 in a press conference on Sunday.

The Egyptian Exchange focused on attracting the emerging companies during the past four years, which was reflected in the volume of offerings that leapt to about LE 11 billion.

Omran said that Egypt came first in the region in terms of offerings volume, despite the slowdown of offering activity internationally and regionally.

The chairman expected that the stock market will start taking decisions regarding the public listing of state-owned companies and banks in the first quarter of 2018, explaining that there is coordination with the Central Bank of Egypt (CBE).

Omran said that the stock market is now qualified for receiving public offering (IPO) of state-owned institutions, noting that EGX has already received offering requests from Banque du Caire and the Engineering Co. for the Petroleum & Process Industries’ (ENPPI).

Earlier in July, the Executive Director of investment bank CI Capital Mahmoud Attallah said in a TV interview that around 24 percent of ENPPI’s shares will be offered for listing.

Speaking about his chairing period for the EGX, Omran noted that the chairman’s validities diminished by 60-70 percent.

The chairman highlighted that from 2013 to 2017, the stock market saw the appointment of four employees and the exit of 30 others.

EGX managed to achieve the highest financial surplus in its history worth LE 103 million in the fiscal year ending in June 30, compared to LE 101 million in the year-ago period, Omran added.

He said that over the last four years, the EGX was able to increase the shareholders’ equities to LE 616 million from LE 257 million in June 2017, after being reduced by LE 40 million from 2011 to 2013.

Egypt was ranked as one of the best six countries around the world in terms of conducting material development in protecting shareholders’ equities.

The Egyptian exchange greatly contributed to developing the Egyptian economy, where around LE 37 billion were pumped as capitals of 183 companies since 2013, Omran said, adding that 46 new companies have also joined the market during the four years.

During the period between June 2013 and June 2017, the Egyptian stock exchange ranked first among the world’s emerging and advanced markets regarding institutional performance by Morgan Stanley Price Index (MSCI), after its main index (EGX30) leapt 200 percent in four years.

Omran added that EGX30 recorded its highest level in history by breaking the level of 1,300 points in 2017.

Moreover, Omran pinpointed that the traded volume of the market has surged for four times in the four years to reach an average of around LE 1.5 billion, compared to an average of LE 300 million before 2013.

Foreign investors have bought shares at a value of LE 11 billion since November 2016, in addition to LE 15 billion in foreign investment since 2013, Omran said.

Foreign trades recorded one of its highest levels in its history, achieving 70 percent of the realized investments in eight years, he said, noting that more than 6,000 new funds and institutions have been established during the four-year period.

The market capital of listed companies on EGX surged 114 percent to more than LE 366 billion in the period between 2013 and 2017, the chairman said.

He further explained that the volume of acquisitions and mergers in the market has jumped to LE 45 billion during the four years, which accounts for 66 percent of total acquisitions and mergers undertaken since 2011.

Furthermore, on the sidelines of the press conference, Omran told Reuters that Egypt has lifted restrictions on Egyptian investors who buy global depository receipts (GDRs).
Local investors will be able to purchase shares on EGX in Egyptian pounds and to receive their returns in U.S. dollars, he added. In 2015, EGX allowed local investors to collect returns only in local currency.

Listing some prominent events that happened during his tenure, Omran said that in 2014 the EGX entered in an agreement with the NASDAQ OMX Group to support the EGX trading platform, powered by the corporation’s X-stream trading technology.
Moreover, the Egyptian stock exchange approved the listing of the country’s first Exchange Traded Fund certificates in 2015.

EGX also signed the "Marrakech pledge to promote green capital markets in Africa" in 2016 to support sustainability in the securities markets internationally and regionally.

This comes in light of the Parties Conference for climate change COP22 that was held in Marrakech, Morocco.