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00:00 We move to Cairo, Mr. Mohamed Rida, CEO of Solid Capital.
00:05 Welcome to us, Mr. Mohamed, and thank you for being here.
00:09 Yesterday, we saw levels of 22,425 as the most important levels of support for the market.
00:16 Did the level today help you in your opinion to test a new historical level of 22,600?
00:22 And this increase we are witnessing from the purchases of Egyptian and foreign companies, how much does it explain the big liquidity movement that we saw today and that has risen to more than 4 billion?
00:34 Let's talk, as we said, about this issue a lot.
00:39 We have seen the market focus recently on some sectoral stocks, the stocks that have the highest weight.
00:46 We saw a focus on international trade, on Bellton, EFG and other such stocks.
00:52 Then, a little bit, it was taking the direction of New Egypt and others.
00:55 Then, we saw a price in the 70s that started to move.
00:58 If we look at this trend, we saw during the last six or seven sessions, a strong entry of the Egyptian institutions to buy specific stocks.
01:06 Either the leading stocks that we talked about, or they buy the stocks that have a government sense in them.
01:11 This may be a prelude to some deals that will happen soon from the state in its exit or it is strengthened by its sense in it that sells some other senses.
01:20 This is very clear by focusing on the stocks that have a government sense to a large extent.
01:24 We see the general trend, of course, any level we break very much.
01:28 We saw from the level when the dollar was 18.5, what is the shift in the number of trades or revaluations that happen to the stocks with the contraction or the price of the 30 or in the market, of course, move in this way.
01:39 All this supports the indicator to go beyond 22.6, which may touch 30,000 before the end of this year, to the big movements.
01:48 Let's also talk about the fact that it is very clear that there is a trend or there is a market with the Egyptian institutions that is heading towards 100 or a good direction or a general level of 100 or a little bit of a point a day.
02:00 This may be the trend. Some days, it is a point increase with an increase in the trading volume.
02:05 All this is a clear direction for the Egyptian institutions to prepare for something that we are not yet clear or may be clear, but the things that we will discuss now.
02:14 It is clear that we are also talking about the stock market.
02:19 The stock market is moving more than 75% during the month of Mr. Mohamed.
02:24 It rose more than 6% today, despite the rejection of the stock market on the demand or the increase in capital.
02:32 Can Kima continue in your opinion in the same way?
02:35 Are there certain reasons that support the movements and this focus on the stock market today?
02:41 No, Kima has a great development in terms of its performance and financial performance.
02:45 Of course, there is a very respectable development, and also related to some of the projects that are being done during this period.
02:50 Of course, it has changed a lot.
02:52 We are talking about the rumors that have spread a little bit and all the rumors are rumors.
02:56 The first one is that there is a profit in the sale of Eastern Company.
03:02 The government is using it to develop a swan factory.
03:05 Or we can say that there are some foreign investors who are very interested in this project or this company.
03:10 All this supports the trend of the stock market.
03:13 Plus, it is one of the stocks that is placed on the top target of the Egyptian institutions that bought it.
03:18 It builds its centers in a big way.
03:20 This is very clear, whether the relationship of the share is with the performance of good money or with the interest of the Egyptian institutions.
03:26 Or its existence in the market of the shares, and all the shares are good if they are confirmed during the coming period.
03:35 Yes, and we also have the commercial bank today.
03:38 Despite the movement and the process of rising, it is probably what it is and it has reduced profits.
03:43 It has broken the level of 59 pounds for the commercial bank. Mr. Mohamed, how will this take us to lower levels in your opinion?
03:51 No, these levels may be the result of the collective actions that are taking place now.
03:56 Because today we saw the exit of some of the companies that were focusing on it recently.
04:00 And it started to enter the shares of some institutions, especially the shares of some government institutions or the Bellton or leadership shares in a very large way.
04:08 We may see this trend and the market will return to its previous level and it will start to enter the market again and break the level of 59 pounds.
04:14 Because it is the main opportunity to rise the index and to achieve the level of the stock market.
04:19 And this is the target that exists during this period, despite the violent political pressure that the Egyptian market is trying to create.
04:27 We see that all the Arab markets are affected, while the Egyptian market is making huge levels with a very high expectation.
04:34 Whether in the price of the equities and the reduction in the review of the IMF. All this may be negative effects.
04:41 But we see that there are very strong transactions for the Egyptian market in the share market.
04:46 So any decrease in the market will lead to another rise because it will take the first stage of the index to a high level.
04:56 We noticed yesterday that the trading of bonds has increased significantly compared to what happened in the stock market.
05:05 Is this a process of diversification for the shareholders of the bonds and the shares for the institutions?
05:12 Because usually when we see the bonds' returns rising at a high level, this reduces the investment in bonds.
05:19 Is this a preliminary step for the return on the bonds?
05:26 Let's talk about the level of the bond performance.
05:30 This is a very big diversification that includes some tools, whether public or private, companies or public debt.
05:37 Today, the idea of the big change in the level of interest rates, the high risk level, the level of interest on the dollar,
05:44 may have a negative effect on the interest of foreign investors.
05:49 So the process of diversification is very important, with a great focus on predicting the return on interest rates in the coming period.
05:57 This may be a very clear direction for local investors or foreigners to pay attention to this sector or invest in it or trade on its tools in general.
06:06 Do you think we will see more support for the review of the box for Egypt from the American and European sides,
06:14 despite the clear and explicit position for Egypt on the circular war in the Gaza Strip, Mr. Mohamed?
06:21 Let's talk about the end of the solution to the land, as they say.
06:25 But today we will talk about exceptions that may occur on the ground.
06:29 Today we will talk about a geopolitical diversion.
06:32 As we said at the beginning, there may be some pressure and some advantages.
06:37 But the political system has rejected all these suggestions, so I expect that the direction will be very large.
06:42 We may continue in this framework until the situation improves,
06:47 with a slight change in the process of dollar estimates.
06:51 This may be the fear, or the current protests by the Egyptian economy,
06:55 that there may be a delay after the elections, which has a great impact on the movement and the price of the dollar in the black market.
07:02 All these coincidences are affected by the end of the agreement with the IMF,
07:08 and the reviews will end and the economic situation will start to settle down and there will be dollar additions.
07:13 This may be a possibility, but I see changes in the direction of the European or American side
07:18 in the coming period, as Egypt has been in the past, with Trump and the great support that Egypt has been missing.
07:23 Perhaps all the programs of the IMF and its success with Egypt were present in the past,
07:27 but now they are completely different. The political leadership has changed, the situation has changed a lot.
07:31 I expect that there will not be a big change, because if there is a big change,
07:34 I think that there will not be any real declines on the Egyptian side.
07:37 Thank you, Mr. Mohamed Rida, the executive president of the Solid Capital group.
07:41 You were with us from Cairo.