Daily News Egypt

Stock market surpassed itself in supporting growth despite economic slowdown: EGX chairperson - Daily News Egypt

Advertising Area




Advertising Area




Stock market surpassed itself in supporting growth despite economic slowdown: EGX chairperson

Mohammed Omran, chairperson of the Egyptian Exchange (EGX), said that the stock market played a vital role in supporting the country’s economic development despite Egypt’s slow economic growth. The stock market has provided funds in the form of initial and secondary offerings and increased capital through issuing bonus shares totaling EGP 37.72bn since mid-2013 until …


Mohammed Omran, chairperson of the Egyptian Exchange (EGX), said that the stock market played a vital role in supporting the country’s economic development despite Egypt’s slow economic growth.

The stock market has provided funds in the form of initial and secondary offerings and increased capital through issuing bonus shares totaling EGP 37.72bn since mid-2013 until mid-2016.

Omran pointed out that the stock market also succeeded in attracting big offerings after a recession period since 25 January 2011 until mid-2014, despite the slow economic growth.

He said that the stock market has worked under difficult circumstances and succeeded in providing funds in light of medium economic growth over the last five years, ranging between 1.8% and 2%, except last year, which recorded 4.2%, due to the expansion of national projects.

The EGX witnessed about seven large initial offerings, notably Arabian Cement Company in 2014. There were also about four offerings in 2015, including Orascom Hotels and Development, Orascom Construction, Edita and Emaar Misr. In 2016, the EGX witnessed offerings of two companies: Domty and Cleopatra Hospital.

Omran said that the nature of the economic environment determines the ability of the stock market to play an influential role in supporting economic growth.

He pointed out that companies, during an economic boom, seek to extend their business through injecting new investments, which will require obtaining funds from banks as well as the stock market. This highlights the importance of the stock market in supporting economic growth.

At the time of recession or economic slowdown, investors prefer to postpone their new investments or postpone offering their company’s shares after registration in the stock market, as it happened during the current year, Omran noted. In this case, the stock market lost its ability to provide funds required for the economic growth.

 

 

Advertising Area



https://wwww.dailynewssegypt.com/2016/09/18/stock-market-surpassed-supporting-growth-despite-economic-slowdown-egx-chairperson/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe