Back to the complete issue
Wednesday, 24 March 2021

Good news, brokerage firms

The EGX30 rose 2.2% at today’s close on turnover of EGP 1.12 bn (24% below the 90-day average). Regional investors were net sellers. The index is down 1.3% YTD.

In the green: MM Group (+5.9%), Ibnsina Pharma (+5.8%) and Abu Qir Fertilizers (+5.4%).

In the red: Orascom Development (-1.1%), EKH (-0.5%) and SODIC (-0.2%).


Brokerages are about to get a financial shot in the arm from a fund to which the Financial Regulatory Authority (FRA) has given the green light. The fund aims to boost trading volumes on the Egyptian Exchange, the regulator said in a statement (pdf). The statement provided no information on the size of the fund, who would own and manage it, or how it will work. We reached out to a number of sources at the FRA for comment; all declined to provide additional information.

The fund will be structured to allow brokerage companies to access financing at competitive rates to support margin trading, EGX Chairman Mohamed Farid told us, adding that authorities are yet to decide eligibility criteria.

The move is an extension of the central bank’s share-purchase initiative launched last year and it aims to support the market stability and boost liquidity, he said.

This isn’t the first time policymakers have tried to boost liquidity on the exchange: The fund is part of several initiatives to stimulate trading on the EGX including allowing factoring companies to finance margin lending by brokerage companies and the EGP 20 bn share-purchase program launched last March in a bid to stem sell-off and support asset prices amid the covid-19 induced market volatility and of which the bank used EGP 500 mn as at last January.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.