An official for Al-Arabiya: the new system of “margin” on the Egyptian Stock Exchange postponed for 6 months

Mohamed Maher, a member of the Capital Market Advisory Authority, chairman of the Egyptian Securities Association and head of Prime Holding, revealed in an exclusive interview with Al Arabiya that “the implementation of the new margin buying system has been postponed and the current price limits for buying the margin will be maintained for a period of 6 months.”

Maher explained during the interview that took place from the headquarters of the Financial Supervisory Authority in Cairo after the meeting, that “Positive discussions ended with a deadline of 6 monthsFor the margin purchase system that should have been implemented at the beginning of January 2022, and therefore the postponement will be until June 2022.

He stressed that the members of the advisory committee had supported the postponement of the application of the changes to the conditions of purchase of the margin, and it is what concluded the meeting, stating that “they are in discussion of the proposals presented by the Exchange, and another presentation is made on this subject before the expiration of a sufficient period of time “.

Maher said that the members of the advisory board and the meeting tried to allow this time in order to reach a proposal agreed by the various parties involved. in this problem, after studying more thoroughly.

He added that the meeting also concluded by underlining that “there will be some sort of disclosure by the stock exchange management on the extent of the margin on listed companies, which has already begun, with the aim of informing brokerage firms and operators. on the size of the risks on each of the listed shares “.

He also revealed that the assembly discussed many other issues, explaining that the Authority confirmed that the actions were not suspended except within the limits of the occurrence of manipulations and in in order to protect shareholders.

When asked what is needed to stimulate the Egyptian market, Maher said that applying the tax requires mitigating its effects, and therefore the impact of the capital gains tax on the market has become very limited, so the market still has need for greater stimulation of supply and demand through the government’s privatization program and the proposals of the private sector.

He stressed the importance of the role of public entities that have liquidity, in the development of the demand side in the Egyptian market, and it will be an influential factor in stimulating the market and working hand in hand with the proposals of the government and private individuals, and therefore the improvement will take place sooner or later to strengthen the institutional aspect and mitigate the speculative influence of individuals.

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