Foreigners, More Active
Egypt, Economics, 11/29/2000

Recently, many rumors have spread concerning foreigners' withdrawal from the Egyptian Stock Exchange (ESE). Chairman of the ESE, Dr. Sameh el-Torgouman spoke of the matter.

As for developing ESE, Dr. Torgouman said that the network of the new dealing system has been installed. "We have updated relevant database and construction works are due to be finished by the end of 2000. This is in addition to training some 400 brokers on the new system," noted Torgouman adding that experimental applications will be carried out in January to work in parallel with the current system.

"On the other hand, ESE has launched a specialized Arabic/English site on the Internet to offer transactions information," he remarked.

On the law of capital market and its impact on the stock exchange, Torgouman said that relevant negotiations are going on between the Ministry of Economy and Capital Market Authority. "Under this law, ESE will be considered self-organized institution. Thus, it will enjoy more independence as regards organization, regulations membership system and self-supervision authorities. These will help in settling any disputes within ESE," he elaborated.

Dr. Torgouman affirmed that foreign buy dealings hit L.E. 219.9 million, or 33.7%, while sell dealings amounted to L.E. 119.3 million, or 30.55%. On the other hand, national dealings scored L.E. 432.5 million, or 66.3%, and L.E. 453.1 million, or 69.5%, for buy and sell respectively.

"Following up foreign activity from January to October 2000 shows that foreign buy and sell transactions scored 28% and 18% of total dealings respectively," he stressed.

"In addition, training courses on financial analysis have been organized under the auspices of Prime Minister Ebeid. Also, there will be another training course by experts from Harvard University in cooperation with the Ministry of Justice on the legal issues concerning capital market and relevant problem-solving techniques," said Dr. Torgouman.

He added that daily 5% increase/decrease in share price is being discussed for probable cancellation.

Moreover, Torgouman asserted that ESE will be linked with Arab stock exchanges that use Canadian method, which ESE is going to implement. "This is in addition to dealing with New York stock exchange, which considers Egypt the gateway to the region and a larger Arab stock exchange," he concluded.

Previous Stories:
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