CAIRO: The Egyptian Stock Exchange will kick off a road show next week to encourage investors, making the first stop in the United Arab Emirates.
Heading to several states in the Middle East, as well as the United States and the United Kingdom, the tour hopes to encourage investment in Egypt’s financial market and banks, Chairman of the Egyptian Stock Exchange Mohamed Abdel Salam said Thursday.
Commercial International Bank Chairman Hisham Ezz El-Arab along with Mohamed Farouk, chairman of Mobica Furniture Co., were present to ring the opening bell with one message: looking to the future.
The market ended the week on a sour note, however, with the main EGX 30 index dropping 0.91 percent and the broader EGX 100 index falling 0.67 percent.
A total of 123 stocks ended red on Thursday with only 47 gainers. The construction and materials sector took the biggest hit, falling more than 24 percent, followed by the financial services sector. Banks were up more than 15 percent.
The major losses of the day were incurred by Eastern Tobacco (falling 7.08 percent), Egyptian for Tourism Resorts (4.60 percent), Palm Hills Development (4.57 percent), Egyptian Arabian Securities Brokerage (4.46 percent) and El Arabia for Land Reclamation (3.78 percent).
National Cement gained the most, rising 8.28 percent.
“If we compare how our market is doing now to December 2010, we will not get anywhere,” said Ezz El-Arab. “From now on, we compare our market to how it was this past February.”
The Egyptian Exchange was closed for almost two months due to the country’s 18-day popular revolt, which toppled Hosni Mubarak’s regime and put many of his cronies and close business associates behind bars and under investigation.
In light of the recent political turbulence that took its toll on the Egyptian economy, Ezz El-Arab sent out a reassuring message: “Egypt’s economy isn’t just made of corrupt officials.”
Pointing out that the country is on the road to change, Abdel Salam wants to assure potential investors that Egypt is indeed putting an end to corruption.
“We want to express to our Arab neighbors as well as other potential investors how the Egyptian market is stable and encourage them by showing our confidence,” he said.
Abdel Salam says after the revolution, Egypt’s ranking on the emerging markets list improved tremendously.
“Before, investors might have shied away from countries with corruption and political instability, but now this is changing and it’s a chance for smart investors to jump in,” he added.
He also emphasized that obstacles investors may have faced before when entering the market are now disappearing.
“Prior to the recent events, investors paid more fees because they knew that they were dealing with corruption, now it’s gone and they will see a more attractive Egyptian market.”
By keeping an eye on the country’s future potential rather than the current uncertainty, Ezz El-Arab says that if shareholders ventured back in to the Egyptian market now, they would not regret it.
“The best time to improve in business is when things are risky, that way when things do stabilize and the situation improves, you’ll already be ahead because Egypt after 2011 is not the same as before.”
Farouk, along with Abdel Salam feel that the “media must play a role” in encouraging investors in the Middle East to put their trust in Egypt’s market.
“We need the media to show the world, especially our Arab brothers and sisters that the corrupt officials are gone. Whether the past was good or bad, it is time now to forget it, move on, and rebuild.”
