The Egyptian Exchange (EGX) Discusses Connectivity and Dual Listing with Abu Dhabi Stock Exchange

Monday, 16 May 2011


EGX Chairman "Mohamed Abdel Salam" announced, during EGX delegation

meeting with Abu Dhabi Securities Market, the discussions to established

connection and dual listing between EGX and Abu Dhabi Securities Market.

Mr. Abd El Salam said that EGX is in the final stage to get connected to

London Stock Exchange. This was announced during EGX promotional

meeting in the Gulf countries, which was held in Abu Dhabi in presence of Mr.

Rashid Al Balushi, Executive Vice President & Operations Director of Abu

Dhabi market.

EGX Chairman also mentioned that the British companies will be able to

access the Egyptian market directly, and this applies on the Egyptian

companies wishing to enter the British market as well.

Mr. Mohamed Abdel Salam declared that around 1,093 foreign investors were

coded after trading resumption, which was suspended for 55 days after the

revolution, compared to 5,576 investors in the year 2010. While the number of

newly coded Egyptian investors reached 20.1 thousands.

On the other hand, the number of coded institutional investors reached 3,910

institutions (including 438 new institutions after the revolution). Moreover, the

composition of EGX investors witnessed a fundamental change after the

revolution. Institutions dominated the market with a ratio of 74% compared to

46% before the revolution, while individual investors accounted for 26%

compared to 54% before the revolution.

The Chairman affirmed that EGX succeeded to restore the non-Arab and Arab

investors' confidence, despite the expected decline after the revolution.

According to statistics, the Arab investors were net buyers, with a net equity of

AED 65.63 million, compared to a net sell of AED 427.74 million.

Arab investors captured 34% of value traded. Non-Arab investors accounted

for 61%, while Egyptians captured 5%. That was according to the statistics

presented by Mr. Abd El Salam.

The Chairman also declared that a number of Gulf financial institutions

announced plans to support the Egyptian economy.

The Kuwaiti Investment Authority announced that it had established a

company with a capital of EGP 1 billion to invest in EGX, furthermore a group

of Saudi investors is planning to establish a bank for investment and

development in Egypt with a total value of EGP 100 billion (USD 17 billion).

EGX chairman stressed that efforts by Egyptians here and abroad should be

exerted to rebuild the Egyptian economy and achieve the necessary growth

rates. He also pointed that the transitions period in the history of nations may