00:00 We have with us Mr. Ehab Saeed, former member of the Egyptian Stock Exchange Board.
00:04 Mr. Ehab, welcome to our show.
00:06 It seems that the Egyptian indexes are in a good shape for the month of August.
00:11 We are wearing important 100-level indexes, 18,700 points.
00:15 It is clear that the news we are hearing from the investment operations
00:19 has started to accelerate more than expected during this period.
00:23 Let's start with the market and this level, 18,700.
00:27 What does this mean for investors and to what extent is Hafez a focus for buying operations?
00:33 In the name of God, the most merciful.
00:38 We were finally able to overcome the very difficult period we have been in since February.
00:43 Every time we get closer to 18,200 or 18,300,
00:47 we find that the index moves in a two or three-seats range,
00:51 then it returns to the previous position,
00:53 we get closer to 16,500, then it rises again.
00:56 We have been going through a very long time of correctional movements,
01:00 since the beginning of the year, not since February,
01:03 but since the end of January, we have been moving in this range.
01:06 Until the index was able to break through, as we have seen.
01:09 But yesterday, there was a bad news,
01:13 which was showing that there was a normal pressure with the second half of the session.
01:18 The worry of today's session was that there would be strong selling pressures
01:24 to continue the negative trend of the candle trend that took place yesterday.
01:28 But, thank God, the index was able to hold on to the areas it was in yesterday.
01:33 After it closed yesterday at 17,500,
01:35 it closed today with a higher closing at 17,629, as I have indicated.
01:40 But the region of 18,750 will remain.
01:44 We need to see if we can break through it in the short sessions that will come tomorrow.
01:49 Then the road will be open to areas that can get closer to 20,000 points.
01:54 The problem here is not in the level, but in the levels that existed since the beginning of the year.
02:09 The index was getting closer to these areas, and then it would go down again.
02:16 I cannot go back to the level of the last months,
02:27 which has now become a support level.
02:29 I am not talking about the support level of 18,400,
02:31 but the support level of 18,200, which is the area that the index was getting closer to.
02:36 But I have doubts about the high volumes and the high value of transactions,
02:41 and that there is a state of optimism in the market.
02:43 I do not want to repeat myself, but we are talking about a lot of proposals,
02:50 and the implementation on the ground is not being done.
02:53 Even those that are being done are done with strategic investors.
02:56 We hope that things will change in a way,
03:00 because it is not possible that all this time,
03:02 even if we do not find a strategic investor,
03:05 so that we can deal with him in a company that I have a portfolio of,
03:10 and I can propose a company to him.
03:13 If some people say that the issue is difficult because of the dollar valuation,
03:17 and because of the problem of foreign investors,
03:20 that they do not enter until there is a one dollar price.
03:22 I have a portfolio of 3 billion pounds,
03:25 and there are very solid liquidity,
03:27 I can propose to it, and give some optimism to people outside,
03:30 so that they know that I am serious about my program,
03:32 and therefore, they will think about it again.
03:34 But two years or a year and a half,
03:36 and I am talking about the program,
03:38 and there is no real implementation on the ground,
03:40 the talk has become repeated,
03:42 and I cannot say that it is the reason for the rise.
03:44 The rise ended a wave of inflation,
03:46 and the market was able to overcome it,
03:48 and pass it, and get closer to 18 weeks.
03:50 We hope that it will continue, whether it is proposed or not.
03:52 Mr. Ihab, we are most prepared for the eastern smoke.
03:57 Why do you think that we did not hurry in the process of the proposal,
04:01 and we put the period for the first quarter of 2024?
04:05 Is it possible that the third quarter of the proposal for the eastern smoke will be completed faster?
04:11 It may be related to the news that one of the companies wants to acquire a share,
04:20 and this may be a kind of pressure,
04:23 but it is possible that if this deal is made,
04:28 then there is nothing to be done.
04:30 This may be a delay in the matter related to the eastern smoke.
04:33 But far from the eastern smoke,
04:35 there are many companies, and they are ready.
04:38 Why don't I propose?
04:39 This is a very strange question.
04:41 I know that there are crises in the government,
04:43 and there are bigger problems,
04:45 and they are focused on bigger issues,
04:47 but the Prime Minister's government appointed a consultant for the proposal program.
04:50 Where is he?
04:52 Where is the proposal program?
04:54 And where is the consultant?
04:56 So this will take a long time, and in the end, he will lose his positives.
05:03 I will wait again, as we used to do in the days of the corona,
05:07 and everyone benefited from the corona crisis,
05:09 and everyone is proposing, because people are sitting at home,
05:11 and the demand is very high.
05:13 No one heard the words.
05:15 Today we say the same words.
05:17 From the beginning of the year until today,
05:19 no one company has proposed.
05:21 I don't know what to say.
05:23 We hope that this will be done a little faster.
05:26 As you said, even to give a good impression to the people I want to sell to,
05:32 as a strategic investor, and to raise the price I want.
05:35 Even the box that is waiting for the review,
05:38 should look and see what I did,
05:40 and that I started to propose and move.
05:43 I think this needs to be done a little faster,
05:46 so that I can't link it to presidential elections or anything else.
05:49 The government has been around for years,
05:51 and has not made a single proposal to unite us, as they say.
05:54 Except for the Eastern Smoke, which is what was done in a hurry, and that's it.
06:01 Okay.
06:02 It is clear that the Arab energy,
06:04 immediately after we looked at the document for the proposal,
06:08 it was referred to the process of the "Ignorance Test"
06:13 for the process of nationalization.
06:16 We saw the arrow today,
06:18 and Mr. Ihab, you were able to shoot it directly,
06:21 with about 20% of the target.
06:23 How much will the Arab energy share be ready for this acquisition,
06:30 and how much will it affect the share and the contributors?
06:34 The proposal that was made may have provided a kind of liquidity for the company,
06:41 and consequently it is considering this matter.
06:43 But I was hoping that the nationalization would include a company coming from abroad.
06:47 It would have been better, but I have no doubt that in all cases,
06:52 this would give a good impression on the exit of the state,
06:54 and especially the armed forces companies that we mentioned at the beginning.
06:58 I was also hoping that the nationalization would include a share in the stock market,
07:02 because I think that the Egyptians,
07:05 the individuals in particular, are the first people to participate in a profitable company,
07:09 a good company, and a strong company like this.
07:11 I was hoping that this would happen.
07:13 But I have no doubt that it is a positive thing.
07:15 Of course, from an artistic point of view, I cannot comment on the energy share at all.
07:18 It has been two or a month and a half, so there is no date to talk about it.
07:22 But the share has risen today.
07:25 The period in which it was at 18-17% was not very long,
07:30 so I can say that this is a compensation from the levels that it had reached.
07:34 Many people bought from it and suffered losses
07:37 with the decline in the share since the day it was proposed,
07:40 when it reached 500 pounds, which was the cancellation of these operations.
07:44 But what I doubt is that, for me,
07:47 the most important issue of energy share is the nationalization,
07:50 which all people are waiting for.
07:52 You can see whether the state and the armed forces will actually
07:57 propose and sell a part of its companies or not,
08:00 especially the international investment houses abroad,
08:03 which monitor the situation on its side and always comment on this matter.
08:08 We thank you, Mr. Ihab Saeed,
08:10 a former member of the Egyptian Stock Exchange Board.
08:15 Shukran Laka.
