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00:00 We will analyze the performance of the Egyptian stock market in the first quarter and today's session with my guest, Mr. Mohamed Abdelhadi, CEO of Wathika,
00:07 to discuss the financial papers. Welcome.
00:10 Mr. Mohamed, let me start with you with today's session before we go into the performance of the first quarter and specifically March.
00:19 Today's session had a 5% compensation on EGX30 and the rest of the indicators also rose. What is the reason?
00:28 First of all, welcome, ladies and gentlemen.
00:32 By the way, if we put a title for the EGX today, it gives a clue to the EGX to continue in its first session, April session.
00:42 The main news that is currently spreading in the economic mediums and that supported the EGX in the rise is the prediction of a ministerial change tomorrow,
00:53 as announced by the President. The news indicates that there will be international figures that will be the main scene of the Egyptian economy.
01:06 In other words, there will be international figures who can hold the presidency.
01:10 What do you mean by that?
01:12 If we were to be honest, we were all talking about Dr. Mahmoud Mohieddin holding the presidency.
01:22 This is what gave a positive impression to the EGX in its sessions today.
01:31 It was clear to the Egyptian market in the rise today in all its indicators.
01:36 If we look at yesterday, we say that the EGX30 was more than 26,838.
01:44 The lowest decline occurred in March. The lowest decline was in the session yesterday.
01:52 But there was a positive indicator in the session yesterday.
01:56 The exchange rate was completely low, 2.3 billion pounds.
02:01 This is clear that it was finishing, as they say in the Egyptian market, after it was performing 3.4, 3.5.
02:09 Therefore, we see that the EGX session today has a difference of about 102 million pounds.
02:17 Therefore, these news that are available in the economic field are what pushed the EGX to rise further in today's session.
02:28 Let me go with you to some of the stocks that may have started to recover from their health.
02:35 We have been on the road for several months.
02:39 March was the month in which we were most pressured by the market,
02:43 because the central bank had decisions on its head, and the price of the stock rose by 600 points.
02:47 The performance was bad.
02:49 Are we ready to return to the highest level of history we recorded before March?
02:54 Or at the beginning of March, specifically?
02:56 Certainly, sir. I will tell you that the highest point achieved by the main indicator, by the way, was on March 11.
03:05 It achieved 34,500 points.
03:08 But I see that the Egyptian stock market, with the difference in the dollar prices,
03:13 that is, all the main stocks rose strongly, 200 and 300 points, but 300 times.
03:21 But the Egyptian stock market does not mean that it rose and recorded 34,500 points,
03:27 but that it stopped at that level.
03:29 Let's see, dear viewers, how the results of the companies' work have been achieved.
03:35 Let's look at the basics.
03:37 The Egyptian currency announced today that it has achieved 7 billion pounds, compared to 630.
03:45 This is a very large number for New Egypt, by the way.
03:49 Since yesterday, New Egypt has achieved 1 billion pounds, compared to 630 million pounds.
03:57 The results of the companies' work are the basis on which the prices of the stocks are reflected.
04:03 So, New Egypt, with its price of 10 pounds and its achievement of 7 billion pounds,
04:07 what is the value of its price?
04:09 So, it is assumed that this price will rise much more, that is, it will rise to 25.
04:15 I say this for the sake of example.
04:17 Therefore, the Egyptian stock market has achieved very strong results in the first quarter of this year,
04:23 as the companies announced, and this reflects its high prices.
04:29 There are prices of stocks that are still low, below one pound.
04:33 These are low prices that are not measured by the extent of the results of the companies' work.
04:41 So, the Egyptian stock market has achieved higher than 34,500 pounds.
04:47 I think it is higher and higher, even with the changes in the state news.
04:51 I think the stock market can have a strong push for the Egyptian stock market.
04:56 And your assessment of the first quarter in general, with all the circumstances we have experienced
05:03 and the season of announcing the results,
05:05 which stocks have been active, which have taken their rights, and which have been underpriced in general?
05:11 First, let's look at the first quarter of 2024.
05:18 As you pointed out, there is a very high rise in the main index of the Egyptian stock market,
05:24 and also the 70-index has risen strongly.
05:27 But what was built in a year was destroyed in 4 or 5 sessions.
05:33 In other words, the 70-index was recorded at about 6,500.
05:39 During the month of March, it recorded a decrease of 6,174,
05:43 which is more than 1,300 points of decrease in the 70-index only in the month of March.
05:51 The 30-index, at the quarter-annual level, has risen strongly, as we said.
06:00 But at the monthly level, in March, a big decrease has been made.
06:06 In the beginning of March, the index was recorded at 29,065.
06:13 It decreased by 26,838 points in the session yesterday.
06:18 If we look at the stock market in March alone, the main index decreased by 2,175.
06:25 But in March, it decreased by 7,600 points.
06:30 From the highest point recorded by the index, 34,500, to the lowest point, 26,838.
06:38 So, in March, the main index really fell, and it really achieved a kind of decline and decrease, even in the trading values.
06:49 If we look at the sectors, we will find that the sectors that were affected the most by the first quarter of the year
06:58 were very obvious, due to the increase in interest rates and the whole exchange rate freezing process,
07:04 which is the whole EGP/USD, were the petrochemicals sectors.
07:07 The asset share in the Egyptian stock market declined in the first quarter of this year.
07:14 The other sector is the logistics and transportation sectors.
07:19 Indeed, it was a very unfair sector, which deserved strong results,
07:23 but we found that this was reflected in the effects and the political momentum that took place in the Middle East.
07:31 This sector was negatively affected, even in some stocks, it decreased by more than 50%.
07:37 The whole balance was the banking sector, which was stable, and was lucky or in debt,
07:44 due to the increase in interest rates, which is 6%, and therefore, this was the most profitable sector in the first quarter of 2014.
07:51 Thank you for your time.
07:52 I would like to thank you, Mr. Mohamed Abdelhadi, and you, the director of Wathiqa, not the State of Financial Papers.