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00:00With this green alert to the Egyptian indexes and more than 1,370 points, we wonder to what extent it now forms more opportunities for buying, perhaps in light of the continuation of the refunds for the price of the Egyptian pound in exchange for the dollar.
00:15We move with our questions to Cairo with Mr. Mohamed Rida, CEO of Solid Capital Group in Egypt.
00:20Welcome, Mr. Mohamed. Let me ask you, between yesterday and today, what is different and what did the investor decide from the large-scale sales operations yesterday to enter today and build the purchasing centers? On what basis did the decision-making today based on this repetition?
00:37Let me speak clearly. In the last period and even the last meeting with us, we said that the index has moved from 26 to 33. This area is greatly affected by the monetary policies.
00:49We will not forget that there is a more restrictive policy for the Central Bank in the 600-note basis, and there were statements from the International Monetary Fund that they need more renewal.
01:00This was a pressure factor in the last period, and let's also talk about the fact that the previous year showed unprecedented increases that were greatly affected by the rise in the dollar price, even in the fair market.
01:10But this is a very strong correction that did not happen for a long time. Today, as soon as we touched the level of 26,000 down, a lot of pressure began and the seller began to lose his strength.
01:21Today, we saw very good repetitions. We saw that Arab and foreign investors began to reduce their purchases significantly. We saw that all movements differ greatly.
01:36Today, we will talk about this repetition, which may be the reason for this common appearance. Today, most investors have entered the creation of purchasing centers, especially institutions.
01:46All this has a great impact on the shape of the market. Today, unfortunately, there is no major news related to the shape of the market, but it is an end to the health crisis.
01:58We will start with the rise in prices, and we will continue to see a decline in prices until we re-establish this market.
02:04Some people linked the movement of the market today also to the continuation of the denial of interest in taxes for the capital gains tax.
02:11Last week, we also listened to the exclusive statements of those who said that there is no guidance so far in starting a process to fight these capital gains, Mr. Mohamed.
02:21Will the subject of the basic year's denial remain an impact on the psychology of investors?
02:26Between the implementation of last week and the denial of this week, today we will talk about a news that is used to influence more on the behavior of investors.
02:36At the end of the day, it is clear that today there is no new tax reform. Today, there is a new law that has not yet been implemented.
02:43There will be an amendment if the bill is issued. There is no new talk, but the process of finalizing the deal will have a greater impact on the rumors.
02:50We have seen that this has happened for more than an hour and in more than one subject, so this has a great impact on the psychology.
02:56But I want to look at the issue at the end. We have said that breaking the level 26 makes the seller stop and a new purchasing power begins to appear in the rest of the centers.
03:06Tomorrow, it will take us up to the levels of level 36, and there will be another decrease, and all this will re-form the monetary policy in the coming weeks for the Central Bank of Egypt.
03:15How much will this policy be linked? Because we are in the week of the Central Bank and the Federal Bank, Mr. Mohamed.
03:22Will any decision be taken, even if the markets are trying to stabilize the interest rates of the Federal Bank at its meetings at the end of this week?
03:32There were expectations that there would be a reduction in the policy of the US Federal Bank, and this reduction has decreased a little.
03:40This reduction was not what we expected. We have seen that most of the central banks in the past few days had proof of the increase in interest rates,
03:48so it will have a real impact on the fact that Egypt is currently, with the increase in interest rates, targeting very large foreign investments in these tools.
03:55It will try to maintain this attraction until this period or next month passes to enter the second phase of the head-to-head deal.
04:04The report that we recently saw from the Central Bank on the first and second reviews pointed to a very important point, Mr. Mohamed,
04:11that there are differences between the government estimates. The Central Bank expects that there will be support for the next year's cash flow,
04:18which is double what the government expected, and which pointed to about 153 billion.
04:24In your opinion, how much of these calculations are also giving conflicting signals to investors, despite the Central Bank's request for more reforms?
04:35The Central Bank is talking about energy support, and it is saying that we need to get away from it at all, and we need to start taking stricter policies at this point.
04:42So, in the end, the issue is more of a calculation for the Egyptian government. I am doing reforms, and I am raising support,
04:49despite the fact that we see that raising support was a great pressure on inflation, but the Central Bank saw that it was not enough to a large extent.
04:57The Egyptian government, in the end, balances the matter between implementing economic reforms and monitoring the social distance that greatly affects inflation.
05:05In the end, it requires raising support. On the other hand, it requires us to control inflation.
05:10The Egyptian government is trying to control the files and balance the files.
05:17We will continue to follow up on these gains and their continuation in tomorrow's session.
05:22Mr. Mohamed Rida, CEO of the Solid Capital Group in Egypt, you were with us. Thank you very much.