President Abdel Fattah El Sisi is the first president in the world to support the financial market and the stock market

Wrote / Consultant Mohamed Sobeih

The decisions that stimulate the Egyptian stock exchange are continuing day by day, after a series of losses over the past two months that have brought them to their lowest level since October 2016, the latest of those decisions announced by President Abdel Fattah Al-Sisi hours ago, to allocate 20 billion pounds from the central bank to support the stock exchange, the first decision announced by the President of egypt to support the money market.

Experts welcomed the financial market, the statements of President Abdel Fattah Al-Sisi, as well as the decision and the amount allocated to support the stock exchange, and the number of the return of the decision, the most important of which is the official announcement of the status of the Egyptian stock exchange at the top of its priorities, in light of the important role of it as a mirror of the economy, and the best publicity for the successful economic reforms over the past period, secondly the assurance of investors and improving the psychology of customers, which is very positive because the decline of the Egyptian stock exchange during the last period, was not caused by the financial performance of the companies restricted or even the Egyptian economy, but the repercussions of the crisis of the Markets, which is very positive. Global Finance, thirdly, an opportunity to acquire shares with a strong financial return after reaching attractive price levels.

For his part, Mohammed Abdullah, Vice Chairman of The Board of Directors of Akyumen, said that the announcement of President Abdel Fattah Al-Sisi allocation of 20 billion pounds from the Central Bank to support the Egyptian stock exchange, a positive step, and proves the interest of the state in the capital market, and comes within the framework of the declarations of many advanced countries to support its stock exchange, adding that President Sisi is interested in the file of the economy, and puts him on top of his priorities.

The decision is also a message of reassurance to investors internally and externally that the Egyptian stock exchange has overcome the coronavirus crisis and recovered as soon as possible.

In a related context, Dalia Al-Sawah, a member of the Association of Egyptian Technical Analysts, praised president Abdel Fattah El Sisi’s decision to allocate 20 billion pounds to support the Egyptian stock exchange, adding that for the first time in the history of Egypt the Egyptian government is taking unprecedented decisions to stimulate the stock market, where president Sisi’s announcement came a few days after the decision of the Bank of Ahli and Egypt to pump 3 billion pounds, bringing the total allocated about 23 billion pounds.

The decision comes at a good time to face the economic risks of the Coronavirus, especially after the shares fell to low prices and became attractive by all standards to buy, stressing that the decision gives confidence to the Egyptian and foreign investors to inject more liquidity into the stock exchange, as well as expresses the government’s confidence in its companies and its economic entity and a very important message at a critical time to reassure all investors.

“The Egyptian market is witnessing a state of economic uprising thanks to the government of Dr. Mustafa Madbouli and its management of the crisis professionally with unprecedented proactive steps, whose decisions reflect its standing on the ground and that the interest stake of the citizen and his health is at the forefront of its priorities,” she said.

He also praised the economist Hani Abul Fotouh, president Abdel Fattah al-Sisi’s decision to allocate 20 billion pounds from the Central Bank to support the Egyptian stock exchange, and comes within a series of positive decisions taken by the government, the Financial Supervisory Authority, The Bank of Ahli and Egypt over the past days, adding that those decisions caused the Egyptian stock exchange to achieve its highest rise during 2020.

And the number of “Abul Fotouh”, from the return of the series of decisions stimulating to the Egyptian stock exchange, which is the first message of reassurance to the traders of the Egyptian capital market, and secondly a kiss of life for the Egyptian stock exchange, in light of the collapse of the Arab and international capital markets, hoping to continue the recovery of the Egyptian capital market during the coming period after these decisions presented by the president and the government, and to continue the interaction of the stock exchange with those initiatives, and the rise of the main index to a level commensurate with the size of the large companies registered with it.

While Mohammed Kamal, Director of Corporate Trading of Al-Raed Securities Trading Company, confirmed the decision of President Sisi, confirms the state’s interest in the stock exchange and its support, and this is good because the stock exchange is one of the most important indicators of the economy, adding that the state will benefit from this decision in acquiring investment opportunities after the arrival of the shares to attractive prices much lower than the values and even fair prices, as it is a positive message to improve the psychology of investors, especially individuals, who went on sale during the past period for psychological reasons far from any informed economic decisions.