Egypt is considering launching derivatives exchanges … and the stocks are breathtaking
Offering half a billion dollars in bonds
Tuesday – 30 Dhu al-Qi’dah 1441 AH – 21 July 2020 AD No. number [
The Egyptian Stock Exchange took a little breath yesterday after several sessions of the decline (Reuters)
Cairo: «The Middle East»
The Egyptian government is studying the possibility of launching regulated exchanges for derivative contracts and launching its settlement companies. This came during a meeting held by Prime Minister Mostafa Madbouly with Mohamed Farid, head of the Egyptian Stock Exchange, according to a statement published by the Prime Minister’s website on the social networking site “Facebook” on Monday.
According to the statement, the participants reviewed the developments of the stock market, restricted in terms of transactions in light of the Corona pandemic, which affected the markets and developed and emerging economies alike.
The meeting discussed the most important measures taken by the Egyptian government to deal with this pandemic in the field of the stock market, which is linked to reducing the stamp tax on residents to half per thousand down from 1.5 per thousand, and postponing work with the capital gains tax, in addition to announcing the banking sector to increase its investments in Restricted shares.
According to the statement, the meeting discussed the developments of the project for the establishment of the current stock exchange for commodities, and the expansion of preparing financial market awareness programs with the Ministry of Culture to increase awareness of securities.
Meanwhile, the Egyptian Stock Exchange took its breath after losses in the previous sessions, due to the heightened tensions in the Libyan file during the past few days. Stock indexes and collective rises at the close of trading on Monday, supported by purchases from Egyptian and Arab institutions and investment funds after a wave of decline during the previous sessions made stock prices more attractive to investors.
The market capital of the shares of companies listed on the stock market gained about 4.5 billion pounds (283 million dollars), to 573.3 billion pounds (36 billion dollars), after total trading amounted to 3.6 billion pounds (226 million dollars).
The main stock index, “EGX 30”, gained 0.97% to end trading at the level of 10380.45 points, while the “EGX 70” index for small and medium stocks increased by 2.6% to close at 1445.99 points. And the strong gains of the market indicators extended to the broader EGX 100 index, which gained 2.1% above its value, to end trading at the level of 2223.74 points.
On the other hand, the Egyptian Ministry of Finance launched, on Monday, treasury bonds with a total value of 9 billion pounds (566 million dollars). The ministry said on its website, that two-year treasury bonds were launched at one billion pounds (about 63 million dollars) at an average interest rate of 14.051 percent, and the highest price reached 14.17 percent and the lowest price 13.9 percent.
The ministry indicated that a 3-year treasury bond worth 4.5 billion pounds (283 million dollars) was launched with an average interest rate of 14.28 percent, and the highest price was 14.35 percent and the lowest price was 14.1 percent. It also indicated that 7-year treasury bonds worth 3.5 billion pounds ($ 220 million) were launched, with an average interest rate of 14.481 percent, and the highest price reached 14.5 percent and the lowest price 14.35 percent.
Economy of Egypt