00:00 But what are the reasons that the Egyptian market continued to move for these profits?
00:05 We join us Mr. Mohamed Abdelhadi, CEO of Wathiqa, a financial paper company.
00:10 Mr. Mohamed, welcome to us and thank you for being here.
00:14 Since the decision to raise interest rates, the shares have reached their highs.
00:20 The closures are still going on and a long chain of profits, we are witnessing it on the 70.
00:25 And if you look at the 1.3%, we have maintained with the closures this week,
00:30 at more than 500 points.
00:33 How has the market performed since the reading we saw for interest rates so far?
00:37 To what extent is it a good sign for the market?
00:39 First of all, welcome, ladies and gentlemen.
00:45 In principle, there is a case of monitoring and fluctuation in the market of financial papers and the Egyptian stock market
00:51 during the week's transactions.
00:53 This was very clear, that there was very strong monitoring and waiting,
00:57 especially that the Egyptian stock market was separated from the Arab stocks as a result of a number of factors,
01:04 including the results of the companies' transactions, and the companies were entitled to very strong business results.
01:09 Finally, yesterday, Sodeca announced the achievement of business results of about 10 billion, compared to 8 billion.
01:16 The second news that affected the Egyptian stock market during the week's transactions,
01:21 and a kind of fluctuation occurred, we saw fluctuation in the 1st, 2nd and 3rd day sessions,
01:26 there was a decrease, the main indicator decreased from 30,700, which is the highest peak it has reached,
01:33 to 27,600, and today it has returned to 28,000, that is, above 28,000.
01:38 And two sessions, on the 4th day and today, there was a contraction in the Egyptian stock market.
01:44 Therefore, we must monitor and monitor the situation of the Egyptian economy during the current period,
01:52 whether the inflation will be reduced or not, this is what is happening in the Egyptian economy.
01:57 Therefore, the situation of inflation affects the Egyptian stock market,
02:04 because the stock market is one of the indicators of the Egyptian economy.
02:08 There is a kind of fluctuation in the Egyptian market.
02:11 At the beginning of the week's sessions, there was a reduction in the dollar price in the equitable market,
02:18 as a result of news related to the head of wisdom, and the previous days indicated that it will enter Egypt
02:26 with a value of about 22 billion dollars, as a result of the investment of the Emirate of Egypt in Egyptian lands,
02:33 worth 22 billion dollars.
02:35 Of course, this affected the dollar price in the equitable market, and there was a very large reduction during the previous period.
02:42 And as far as the Egyptian stock market is connected to the equitable price, this is not an economic issue.
02:47 But when we point to the existence of a control from the equitable market over the official market,
02:53 in this case, we must return to the equitable market in its prices and prices for the existing Egyptian stock markets.
03:01 Therefore, we noticed that with the reduction in the dollar price at the beginning of the week's sessions,
03:05 there was a reduction in the Egyptian stock market.
03:07 And the Egyptian stock market resumed its sessions on Thursday and Thursday,
03:12 in view of the supporting news that the president mentioned in supporting the social distance
03:18 and increasing the wages by about 50%.
03:22 This warned all economists and investors in the Egyptian stock market that what we have been waiting for a year will happen,
03:32 which is the compensation, because when the compensation starts or any country takes it, it is based on two things.
03:39 The first thing is the increase in interest, and this happened last Thursday.
03:44 On Thursday, the Egyptian central bank increased the interest rate by 2%.
03:49 And secondly, what happened with the social distance, support and support in increasing wages,
03:57 and therefore the circumstances were completely prepared for compensation,
04:01 even if the news was leaked, not from a supporter or a supporter, not from an official source,
04:09 but all the economic means that compensation will take place in today's session, today, Thursday.
04:15 And therefore, this is a warning to the Egyptian market in the session on Thursday,
04:19 that it will rise and that the session on Thursday will support this rise above 28,000,
04:26 and close 28,411 with support from the commercial bank, which began to try at the price of 80 pounds again.
04:33 Today, we were also monitoring the inflation data, Mr. Mohamed,
04:38 which came down to 29.8% compared to 33.7% in December.
04:44 Some are wondering, in your opinion, what are the reasons that led to this decline,
04:48 despite the fact that the prices of food products have dropped somewhat.
04:51 What are the most important factors that contributed to this decline today?
04:56 First, in terms of inflation, the data released in the Egyptian state,
05:02 from my personal point of view, is not true.
05:06 From my personal point of view, and I repeat,
05:10 that inflation, with the rise in the prices of goods, especially last month,
05:17 the prices of metro tickets, tickets and goods prices rose significantly,
05:23 and this is especially a source of the sources of the ruling on inflation.
05:27 Inflation in November was 34.6%,
05:32 and then it began to be announced that the inflation decreased by 34% from 33.6%.
05:39 Then we found out that inflation reached 29.8%.
05:44 Therefore, this question must be asked by the government official in the Egyptian state.
05:50 How can there be a very high price increase in goods in the Egyptian state,
05:56 and it announces that inflation is 29.8%?
06:00 How is that?
06:01 From an economic point of view, this equation does not exist completely on the ground.
06:07 Inflation in Egypt, according to the estimates,
06:10 rises above 40 and 45%, and therefore 29.8%.
06:16 How did the Egyptian state come to announce today that there is an inflation of 29.8%
06:23 in light of the rise in the prices of goods?
06:25 The main standards for inflation and its rise come from the prices of goods and consumers,
06:35 and therefore the prices of goods have risen very much during this period.
06:39 Even the prices of oil and gasoline have risen during the previous period.
06:43 So the main source of inflation is 29.8%.
06:50 I think this question does not address any economic in Egypt,
06:53 but addresses a government official who announces the reasons for the decrease in inflation.
06:59 During this time, we are also listening to the Prime Minister,
07:03 who is forming a legal committee and a global office to study investment offers
07:09 that may boost a large number of foreign currency.
07:15 Mr. Mohamed, will this formation be useful in your opinion,
07:19 in the government's ability to attract this direct foreign investment and foreign currency?
07:26 I want to tell you that the Egyptian state has no other source other than the currency market.
07:33 I am not against this concept of the currency market,
07:39 especially that in the Egyptian state, like the head of wisdom,
07:43 we have a very large area in the North Coast that is not exploited.
07:48 Therefore, the Egyptian-Emirati cooperation in exploiting this large area of land
07:55 in the North Coast will benefit the economy,
07:58 will increase employment rates,
08:01 and will increase the foreign currency, which is worth more than 22 billion dollars.
08:07 The Egyptian state has sources in foreign currency.
08:10 During the previous period, and I repeat,
08:13 these sources, the dollar income, come from several sources.
08:18 We are talking about tourism.
08:20 Tourism during this period, with the political parties, is under great influence,
08:25 especially that the war between Gaza and Israel is still going on.
08:31 They even refused to give us a permit during these days, and they will regret it.
08:36 But we come from the other factor, the Suez Canal.
08:41 Therefore, the Suez Canal is one of the main sources of foreign currency.
08:45 It is also affected by the political turmoil that took place in the Red Sea area of Hussien.
08:52 So, what are the sources of dollars?
08:54 You will find exports, and you will find the sale of assets.
08:58 So, the sale of assets is a source of basic sources of foreign currency.
09:03 Therefore, this is one of the main factors in the rise of the Egyptian currency during the current period.
09:10 So, the focus of the Prime Minister on selling assets is a positive thing,
09:15 because he does not have another source other than selling assets.
09:20 There is a final source, the transfers of Egyptians abroad.
09:23 By the way, this is a basic source, but the transfers will not be made
09:27 unless the equal price is balanced with the official price at one price.
09:34 And this will increase the transfers of Egyptians abroad.
09:37 Thank you, Mr. Mohamed. You are the director of the financial documents company.
09:43 You were with us from Cairo. Thank you.
