Foreign Investors increase to EGP21.9bln in EGX since flotation

Foreign Investors at the Egyptian Exchange (EGX)  increased to 21.9 billion Egyptian pounds  between the Pound flotation decision in November 2016 and the end of 2018, according to Chairman of EGX Mohamed Farid.

However, Net foreign investment 2.04 billion pounds between September 2014 and October 2016.

Mohamed Farid added during the EGX annual conference that those rates have  resulted from the positive appetite from investors in coincidence with the government procedures related to implementing the comprehensive economic reform programme.

In addition, The shift in the foreign exchange policy, measures to reduce the chronic fiscal deficit such as the introduction of a value-added tax, and the new investment law and its regulations to improve the business environment, have all had transformational changes on the EGX.

He also added that The EGX’s reforms include reducing the circuits breaker time from 30 minutes to 15 minutes, improving communication between listed companies and research firms, and establishing a special unit for reviewing financial disclosures by listed companies and introducing the law governing both leasing and factorisation activities.

Going forward, the EGX aims to improve the intra-day trading mechanism, and introduce short selling and derivatives . These factors will all contribute to the attractiveness of Egypt’s capital market to foreign and domestic investors.

The trading value jumped about 50.3% from November 2016 to December 2018, Farid also revealed.