Stock exchange development plan 90% complete
Sameh El-Torgman, Chairman of the Cairo and Alexandria Stock Exchanges, asserted in an interview published in the daily Al-Alam El-Youm today, that there is an improvement in the indicators of the Egyptian economy which will be reflected on all economic units as well as the capital market adding that the stock exchange will finance new projects.
El-Torgman also explained that applying the new trading system will be accompanied by training new cadres as the stock exchange attracts many external experienced personnel.
Regarding the supervision process, Al-Torgman declared that there is now a new supervision department where a data base of the listed companies will be linked to the trading system. There will be also a disclosure system connected with the data base. Thus, the supervision department will be able to follow the operations and disclose any manipulations.
Meanwhile, the stock exchange will issue releases based on the information provided by the Capital Market Authority as well as the pricing committee. These releases will be documented to prevent the circulation of rumors.
Al-Torgman stressed that all companies must present all the information related to their operations to notify all customers. Penalties will be imposed on the companies which do not abide by these rules.
He also emphasized that the stock exchange does not interfere with the internal affairs of any company regarding raising the price of its shares.
He also reiterated that there will be an exploratory session to determine prices away from the 5% margin.
As for the settlement operations, he added that securities brokers bear the risks of these operations which can be decreased through linking the settlement system to the banking trading system or allowing brokers to interfere directly in the quick purchasing and selling operations in addition to provide financial solvency.
In order to avoid any shocks, the time of exploratory sessions will be announced before being applied to the market.
El-Torgman underlined the fact that the stock exchange plays a major role now in the awareness and education of customers but all authorities and establishments should work together with the media to produce programs about the stock exchange.
About the size of trading in the stock exchange since the beginning of this year, Al-Torgman asserted that about 181,000,000 shares have been traded and with the acceleration of the privatization program, this size will double.
About the role of foreigners, he declared that foreigners have a great purchasing power and as long as the conditions of the stock exchange are stable, foreigners will invest more in it.