Mohamed Farid — Chairperson of the Egyptian Exchange (EGX) — held two meetings with all parties relevant to the institutional investment file in the stock market to formulate a common framework and an action plan to increase their investments.
In implementation of the decisions issued by Prime Minister Mostafa Madbouly, and in an attempt to complement the efforts of the EGX’s management, all parties are coordinating with one another to increase government institutional investment in the stock market in particular.
This series of meetings are linked to a meeting held by the PM in the presence of representatives of Economic Group — a food goods company — and all relevant government agencies to discuss increasing the governmental institutional investment component in the stock market.
The first meeting included investment management companies and representatives of the Egyptian Investment Management Association (EIMA) on 9 May, and the second included investment officials in government funds and institutions, investment managers, and representatives of the Accountability State Authority (ASA).
The meetings witnessed a back-and-forth discussion with all parties in an attempt to assess the current situation of government institutions’ investments in the stock market. Figures have proven these investments to be rather weak compared to the participation rates of these institutions in regional and global stock markets.
The meeting also tackled ways to reach an action plan with applicable goals, follow-up, and assessments. This plan starts with removing all the obstacles preventing these parties from increasing their investments in the EGX.
For his part, Farid said that the two meetings witnessed a great convergence of views between the participating parties to work together to remove all obstacles along with simplifying all requirements necessary to increase investment.
He added that insurance and pension funds are among the largest investors in the stock markets, especially that they usually make long-term investments, which supports the efforts of investment managers and fund officials in bridging the actuarial gaps.
Farid also explained that the second meeting included investment officials from Egypt Post, the Egyptian Endowments Authority, public and private insurance companies, pensions officials, representatives of the ASA, along with investment managers.
All attending parties agreed to start preparing and formulating proposals and work plans that are applicable in their respective fields in an attempt to achieve the general benefit of enhancing liquidity and activating market trade.
For her part, Gehan Saleh — Adviser to the Prime Minister for Economic Affairs — said that Madbouly directed holding a series of meetings with all parties related to stimulating institutional investment in the stock market to reach a common vision and action plan that can allow everyone to move quickly during the coming period according to controls and limitations that guarantee that the rights and obligations of all parties are met and fulfilled.
During the meeting, investment managers noted that it is necessary to work quickly to develop the selection and evaluation criteria set and applied by government agencies, with government representatives and all participating parties showing enthusiasm for that suggestion.