Foreign investors purchased LE 13M in EGX since flotation

CAIRO – 8 November 2017: Foreign investors achieved net purchases of LE 13 million since November 2016, which represents an improvement in the stock market’s performance, chairman of the Egyptian Exchange (EGX) Mohamed Farid said.

Speaking at the seventh annual EFG Hermes London Conference, Farid revealed plans to attract investments to Egyptian markets over the coming years, a Wednesday statement from the investment bank reported.

“There are efforts to improve the invest-ability aspect through improving the size and liquidity of sectors… the improved economic conditions tempt both investors and businesses to come to EGX from both domestic and international markets,” Farid said in his discussion with EFG Hermes’ head of brokerage in the UAE Julian Bruce.

Elaborating on the EGX’s measures to increase market liquidity and depth, Farid said that they set a minimum limit on the number of shares that companies offer for listing. “It’s important for us to look at the quality of both companies and the disclosures which are presented to investors… sufficient disclosures improve transparency, which in turn will improve attractiveness and share flotation in the market,” he said.

EFG Hermes launched the conference Monday, with the attendance of investors of more than $9 trillion in assets under management.

A number of 290 investors working in 10 industries spanning 20 countries, as well as fund managers gathered to exchange market insights.

Sessions of the conference addressed the outlook on initial public offerings (IPOs) and the impact of current oil prices on regional markets and regulatory changes and infrastructural upgrades in each exchange.