Elite Financial Consulting board member Mohamed Kamal said in an interview with “Al Arabiya”, today, Sunday, that the solutions of the Egyptian Stock Exchange so far are not enough to give the market the kiss of life, and currently the Egyptian financial market is in its worst condition and one of the 3 worst stock exchanges For more than a month, it has seen a consecutive decline in the main index.
He added that the CIB stock is climbing on its own in the main index “EGX30”, which supports the index, while all stocks are seeing declines.
He explained that the government’s recent stimulus plan was not enough and this practically translated into market performance, and the meeting of the Financial Supervisory Authority was also frustrating for investors, all statements for local consumption, and we have not seen stimulus measures for the market, which lives a state of moribund every day, and the majority of stocks are in subsequent reductions.
Mohamed Kamal said that the e-finance subscription contributed to the entry of new market segments, but the subscription did not help the market.
He added that the market needs an action plan, not incentives or declarations, which consists in the restructuring of the market and in the enactment of laws and laws to limit the intervention measures on the market, especially after the recent measures of the Financial supervisor, despite the validity of some of them, quickly followed one another and ran out of market in significantly, including the move to List D, which had a negative impact, and the Exchange conducting the auction session, which operators refuse, and officials require a de facto continuation of its application.
Mohamed Kamal said the government must intervene to save the Egyptian market by developing a bailout plan and stimulating the entry of new companies and limiting interventions in the trade.
The Egyptian government recently announced a package of incentives and changes to tax transactions on the Egyptian stock market, with the aim of encouraging investors and driving the market towards growth.
Among the new incentives are the reduction of the trading costs of the Stock Exchange, the Financial Supervisory Authority and the Egypt Clearing House, as well as the reduction of the contributions of the investor protection fund against non-commercial risks.
The board of directors of the Egyptian Financial Supervisory Authority had decided to reduce the cost of 20% for services obtained from trading operations on the Egyptian stock exchange and to send the draft resolution to the Prime Minister, to take steps to issue it with the objective of increasing the volumes traded on the Egyptian stock exchange.
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