Egyptian Exchange to approve 10 listings

The Egyptian Exchange expects to have approved the listings of 10 companies by the end of this year as confidence in the local economy grows, the exchange’s chairman Mohamed Omran said.

By Ehab Farouk (Reuters)

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Published: Thu 23 Oct 2014, 12:18 AM

Last updated: Sat 4 Apr 2015, 4:52 AM

The stock market was hit hard by the political and economic instability which followed the overthrow of Hosni Mubarak in early 2011, but many investors now feel stability is returning. The main stock index and trading volumes have both rebounded above the levels seen in 2010.

Arabian Cement Co listed in Cairo in May this year after raising $110 million in its initial public offer, the first major one on the bourse for about three years.

Omran, in an interview for the Reuters Middle East Investment Summit, said the exchange had approved the listing of four companies so far this year and expected that number to rise to ten by the end of 2014. Growing activity in the stock market “is a very positive indicator that the Egyptian economy has started to recover,” he said.

“Companies are able to acquire, expand and invest to a greater extent in order to achieve profitability and growth. This will reflect on per-share earnings and in turn on prices in the market. The exchange and the economy can never be separated.” He added: “We have an economy that hungers for investments. The major economic projects that Egypt is currently working on will lift the dust off its economy.”

Stock prices have tumbled in the past two weeks as global markets have been hit by concern about economic growth; the Egyptian index is down about 13 per cent from last month’s six-year peak.

Omran said the pull-back was not related to fundamental copnditions in Egypt.

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