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00:00We will now move to the analysis of the session performance for this day with my guest from Cairo, Mr. Mohamed Abdelhadi, CEO of Wathiqa for the circulation of financial documents.
00:10Welcome, Mr. Mohamed. I will start with you with what happened during this week.
00:15First, we had fewer sessions because we were at the beginning of the week on vacation.
00:20We returned, we acted as a reaction after the absence on vacation and as a reaction after the events that were in the region.
00:27And we explained what happened in the third session after that.
00:32We came yesterday and we returned noticeably, and today we reduced the loss.
00:39I don't call today increases, I call it stability on indicators.
00:43Your explanation of what happened during this week.
00:46First of all, I welcome you, ladies and gentlemen, and viewers, with the best of luck and success.
00:53In principle, if we look and analyze the weekly sessions, which are the sessions on the 3rd, 4th, and 5th.
01:00The session on the 3rd was positive, we closed at a high rate, and the market capital was profitable.
01:07But this was coming after the vacation, and this is normal.
01:10All investors, psychologically, are afraid of vacation.
01:15And some investors prefer to close their city centers.
01:21Therefore, the session on the 3rd was a normal session for me.
01:26I expected there to be increases because the customer waited and waited.
01:32Then this situation ended with the session on the 3rd.
01:35So he started to buy and return to the city center that he created before the long vacation of Sham Al-Nisil and Khilafat.
01:46Therefore, the session on the 3rd was a positive session.
01:49The session on the 4th was a negative session in my opinion.
01:53The market capital of the Egyptian stock market was very low, and it had a main reason.
01:58If we look at the main reasons for the low stock market, there are basic general reasons.
02:06I told you that in the Egyptian institutions, since the session on the 3rd, 11th, and 10th,
02:1334,500 institutions were being sold.
02:15And this is normal after an increase of 20-23%.
02:19Therefore, they try as much as possible to create a center and start selling on paper.
02:29Therefore, this is normal for Egyptian institutions.
02:33But it was not normal for me that there were positive indicators for the Egyptian economy at the time.
02:40So I was talking about the positive indicators in the institutions' sales.
02:46But the language of money is the main reason.
02:51What are the positive economic indicators?
02:54Do you consider one of the numbers of inflation today?
02:59One of the economic indicators is, of course, the inflation that decreased, as you mentioned.
03:05Today, it decreased by about 32.5%.
03:08It was expected to decrease by about 32.8%.
03:11Last month, it was expected to decrease by about 33.3%.
03:14So there is a kind of decrease.
03:16There is a gap in all the goods on the shelves.
03:22There is a dollar surplus.
03:24These are some of the positives.
03:26Yes, for the citizens, they did not feel this decrease in inflation,
03:33given that all the goods during the previous period were priced at $ 70.
03:39So economically, we must leave about three or four months at least
03:45for the citizens to feel the decrease in inflation and the increase in the value of Egyptian pounds,
03:52especially for physical goods.
03:54Even today, the Central Bank did not indicate that the reason for the decrease in inflation is the decrease in physical goods.
04:00Because physical goods have a direct impact on the increase in Egyptian pounds compared to the dollar.
04:08You, in two or three sessions, did not announce a change in your view of Egypt from stability to positivity,
04:16especially since there are some other international institutions that will change the face of Egypt.
04:22I want to take your point that the reason for the decrease in inflation in the fourth session was the main reason.
04:28The reason for the decrease in inflation in the fourth session was the main reason.
04:34This is what I want to ask you about.
04:36The company's statement today said that the freezing is not easy and the number of frozen shares is not easy.
04:43Today, the share price is 7.5%.
04:46We hope that the freezing period will be released.
04:50Two years.
04:52Two years ago, you were talking to me, senior officials, about people who are fundamentalists in their ownership in the castle.
04:59When the process of managing the shares in the company freezes, what can we expect in response?
05:06Today, the price of 7.5% is back.
05:08What will happen to the company next week?
05:11I do not like to make my own statements.
05:15As you said, the report of the General Committee of the Monetary Authority has frozen the shares for two years.
05:23Okay, I will freeze the shares for two years, but the return to the investor in two years is about 50 billion pounds.
05:31If I tell you that you will get about 50 billion pounds in two years, what will you tell me?
05:36I will tell you that I agree.
05:38I think that the General Committee of the Monetary Authority, although it made this decision, is not in favor of the investor or the minority rights.
05:47That is why I ask the General Committee of the Monetary Authority to protect its minority rights.
05:51Allow me to explain what happened in the castle.
05:55The castle's debt is about 12 billion pounds.
06:00The main investors in the castle negotiated with the banks in their cities in the castle to reduce the loan by about 90%.
06:11That is, 12 billion pounds will be taken from 1.2 billion pounds.
06:17The banks agreed to the loan.
06:19For one reason, the banks were in the budget that this was an unpaid loan.
06:24Today, if I tell them that I will pay them 1.2 billion pounds, the banks think that this is a profitable deal.
06:32But, until now, this is a positive thing for the castle and a positive thing for the small investors or the minority rights.
06:41But what is not positive is that the same investors who paid 1.2 billion pounds from the original 12 billion pounds,
06:49after a while, will increase the capital not by 1.2 billion pounds, but by 12 billion pounds.
06:58That is, I pay 1.2 billion pounds and I will let the investor write 12 billion pounds worth of 5 pounds.
07:07It is impossible for this to happen.
07:11Of course, we hope that there will be a reconsideration of this decision.
07:15Because the truth has surprised us all today in the market.
07:18Let's move on to the behavior of the other leaders,
07:23those affected by EGX30 and others, and the levels that are expected to be rebuilt.
07:2926,000. We have been talking about it a lot.
07:33We can break it once and go back to it.
07:36Give me your expectations for the artistic levels of the index movement next week.
07:43And keep in mind that all the data and scenarios are open.
07:48I want to tell you that you pointed out to me that today's session, and I liked the word very much,
07:53and I welcome you to it, that today is not a session of ascension, indeed.
07:58Because it is a session of stability, as you pointed out.
08:01Indeed, it is a session of stability.
08:03Yesterday, there was a decrease, and today there is a positive stability.
08:06But, as I pointed out to you, the language or the secret word in the Egyptian market is the Egyptian institutions.
08:14Yesterday, the Egyptian institutions sold about 293 million shares.
08:20Today, there is a positive side in the Egyptian institutions.
08:23We even noticed in the second half of the session that there are trading operations.
08:27But, with the reports by MSCI yesterday, in addition to some shares,
08:34and the change in view of the Egyptian shares after the preservation, which was almost 100 years ago,
08:43I think that foreign investments in the Egyptian markets may begin to be countered.
08:49I hope that the boxes will be distributed between the passive and the active,
08:59and that there will be a specific activity on the shares that these directions are suitable for.
09:03Thank you for your time and your analysis, my guest, Mr. Mohamed Abdelhadi from Cairo,
09:07and you are the CEO of Wathiqa, a financial documents company.