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00:00 We will talk more about the performance of the Egyptian stock market with our guest from Cairo, Mr. Mohamed Rida, the CEO of Solid Capital. Welcome to Egypt.
00:12 I would like to start with you, we have a clear compensation for you today in EGX 30.
00:16 Thank you.
00:18 Today we compensated EGX 30 with more than 1000 points on the index and we rose to more than 29,400 points. What are the reasons in your opinion?
00:28 Let's talk about the last period, we had a big change in the shape of the stock market performance since the decisions regarding the monetary policy and the increase in interest rates and the dollar's inflation.
00:48 This was a big difference. We saw in the last period the big impact of the dollar's decline in the EGP and its impact. We saw in the past months that there was a price increase for the Egyptian stock market on the dollar.
01:02 This caused a lot of price changes and we reached the level of 33,500. What happened in the last period was that there was a lot of pressure on the market and on the price.
01:14 Today we are talking about the SMART market which is 30% higher and we are talking about the market's big inflation.
01:22 We see that our movements will be at the level of 26% and 23% and we will be in this area between the rise and the decline of the profits and so on.
01:33 This will cause a change in the shape of the monetary policy with the inflation rates. The monetary policy will start to decrease interest rates in Egypt and the reform process will start again.
01:50 We saw some of the rise in the market and this is a sign of the decline in the market.
01:56 Today, if you look at the chart, you will see that all the stocks that were supporting the high index are mostly positive and have positive news.
02:04 All of this will be the driver or the one that will lead some of the stocks to rise.
02:09 As you said, any change in the monetary policy will have a big impact on the shape of the stock market in the rest of the year.
02:17 We saw that the dollar is back to the 48.30 level. Is this the reason for the situation you mentioned, the situation of waiting?
02:28 This confirms what I said in the beginning, that the decline in the dollar was due to the dollar against the dollar that we saw recently.
02:43 Today, we saw some of the rise and there is a link between the dollar and the market.
02:49 But today, the movement in the region is trying to have a fair price for the pound and the dollar that the market is trying to adjust.
02:58 This will be a big impact in the last period and will also affect the income and output flows with the effects of the dollar price stability
03:08 and the rise of some of the stocks that were in the capital on the listed companies and their impact on the results of their work.
03:15 Let's go back to the state trade. Today, we saw a sharp rise and one of the reasons that pushed EGX 30 to this level.
03:25 Why should the banking sector be in a tight spot during this period? What are the important investigations waiting for?
03:36 The state trade bank was the one that was in charge of the arbitration process between the international trade certificates and the price of the dollar.
03:45 The certificates were in terrible numbers and the numbers were exaggerated.
03:50 It was the leader of the last period. We saw that the last period was a correction process to reach the fair price.
03:58 During the last period, before the financial policy decisions that were taken in the month of Ramadan,
04:04 people were in a big clash between the international trade certificates and the local stocks on the state trade.
04:10 This made a big difference to the exaggeration of the dollar price.
04:13 When the dollar price started to stabilize, a big correction happened.
04:16 Now, the dollar price is rising again. Today, all these indicators will be greatly affected.
04:23 The banking sector, with the high interest rates, is in a big crisis.
04:29 Its arbitration processes are shrinking.
04:33 But, the exposure of the banking sector to the government's financial instruments, which have a high level of interest,
04:40 will give it a lot of support for more loans.
04:43 But, the core of the bank, the percentage of the employment that is divided by the interest rate of any bank,
04:48 will be affected by the high interest rates.
04:51 Let's go back to the issue of the daily withdrawal of dollars,
04:59 which we saw in the last period, especially for foreign bank cards.
05:04 Today, the number of internal bank cards has reached 250,000.
05:08 This is an indication of the liberation of the ability of the bank's client to handle his money well.
05:18 What is the need for this step today?
05:21 What is the reason for the expansion of the bank cards among investors?
05:27 Let's say that there are big restrictions imposed by the previous governor, Amr El-Roub,
05:39 which had a great impact on the dollar market in Egypt.
05:44 There were also big restrictions on withdrawals.
05:49 We were also talking about restrictions on withdrawals of ATM machines.
05:53 The process that took place in the new governor, Hassan Abdullah,
05:56 and the major adjustments and developments that we saw,
05:59 and the whole system's revolution,
06:01 the exploitation of the "head of wisdom" deal,
06:03 the success of the negotiations with the International Monetary Fund,
06:06 and the entry of international institutions,
06:07 all of this was a great success.
06:08 Today, the continuation of these elements is very important.
06:11 Today, the central bank is trying to stay very far away from the dollar price,
06:16 and it leaves the banks to determine the price.
06:19 The price on its website is a guaranteed price from banks and the interbank,
06:23 and this is a big change in policy.
06:25 It continues this process with the process of allowing and canceling some restrictions.
06:30 It is also trying to gradually cancel them,
06:33 not to raise them once so as not to be affected.
06:35 The second purpose of this decision is to reduce the withdrawal limits,
06:39 which affects the dollar process,
06:41 to reduce the cash in people's hands,
06:43 so that they can use it in the purchase of the dollar.
06:45 Today, the process has changed a lot.
06:48 The market for withdrawals on the dollar is very large.
06:50 Banks and the government were able to withdraw the dollar very largely,
06:53 and withdraw from the hands of individuals.
06:55 Today, the process of restricting the withdrawal of cash is no longer necessary.
07:00 The process of gradually reducing it is required to facilitate the process of dealing between individuals and companies.
07:08 Thank you for your time and analysis.
07:10 My guest is from Cairo, Mr. Mohamed Rida,
07:12 and you are the CEO of the Solid Capital Group in Egypt.
07:15 Egypt.