Category
🗞
NewsTranscript
00:00 Regarding the closure of the Egyptian directories, we have Mr. Mohamed Riddar, the Executive President of the Solid Capital Group in Egypt.
00:06 Mr. Mohamed, welcome to us. We are closing the month of July on light earnings for the EGX30.
00:12 Also, SEVENTEEN is recording the first monthly return after three months of earnings.
00:16 But in general, today's session was a collective rise and improvement in liquidity levels.
00:21 What is your assessment of the month of July and what is waiting for the market in your opinion in the coming August?
00:29 Let's talk about the market. There were many changes in the month of July.
00:33 We tried to rise to 16,500 and try to stay at that level.
00:38 But there were some major decreases in the month.
00:40 It was affected by some pressures and some circumstances we went through.
00:44 Some issues, some offers, some other things, some entry of subscriptions, etc.
00:48 And in the end, today we are recovering.
00:50 We are closing at the same level we opened in the month.
00:53 We might have made some recovery. But the difference now with the last sessions of the month of July and today's session
01:01 is that the financial sector is largely controlled by the market in terms of liquidity levels.
01:06 We will find international trade, we will find Bellton, of course, and the major developments it has experienced.
01:11 We will find EFG, Fowry, Alaa. All of these are controlling the transactions a little bit,
01:16 regardless of the highs and lows in them, at the level of performance as a share on the screen.
01:20 And this might give you many reflections on the vision and direction in the coming period.
01:25 Let's say we talk today about something like Bellton's book and its size.
01:29 This might give you some reflections on the financial sector and the pressures and circumstances it is going through.
01:33 Why Egypt might have a little more potential in the growth processes in the coming period, God willing.
01:38 Yes, but the central decision will be at the end of the week, Mr. Mohamed.
01:42 Starting from the principle of stability, in your opinion, how much will there be an advantage for banks?
01:49 Especially since we recently saw that the biggest banks have turned to issuing high-revenue certificates.
01:56 How much can banks continue the journey of issuing these certificates after the process of stability?
02:01 Let's say we want to witness now a very strong inflation process for the Egyptian Central Bank.
02:08 Let's talk clearly, as the Central Bank Secretary said, we are targeting the levels of inflation,
02:14 we are not targeting the value of the currency.
02:16 This is a very good direction, but today, in order to be able to control the process of inflation in the currency,
02:22 I have to pull the currency as much as possible from the markets.
02:24 He worked on the law of reserves in the banks and he wanted to be able to pull it very much.
02:29 Then today we are talking about the process of issuing a very strong certificate of Egyptian pounds,
02:34 so that he tries to pull the currency as much as possible from the Egyptian market.
02:38 He also started to face the issuance of dollar certificates,
02:43 which is an attempt to fill the reserve in the dollar.
02:47 This will also give a very high performance to the banks,
02:50 that they will be able to have a very large volume of liquidity in the banking sector,
02:53 and they will be able to finance the needs of the state as local issuances of debt or other such things.
02:58 If the process of pulling the dollar from the market succeeds, it can give it a position,
03:02 because today, in addition to foreign assets in the banking sector,
03:05 at this moment it is in the balance, so today we are coming to a dead end.
03:08 The process of raising the interest rates or exiting them has not been very successful.
03:12 And let's also talk about the international framework,
03:15 today the US federal government has freed itself from the interest rates,
03:17 so you want to buy tools for foreigners.
03:20 Because today, be careful, there is a reference to the entry of foreign investments,
03:23 whether it is in government debt or other such things,
03:25 because of the rise of the US interest rate from the US federal government.
03:28 He also wants to do a balancing process or a balance process with the interest rates at the global level,
03:32 and we have a very realistic conviction that the time of the low interest rates is over.
03:38 Today we can work for a very long period on these levels,
03:42 or we can fix it for a period of years, which can be reduced again.
03:45 He will also have a challenge to be attractive to foreign investments,
03:50 despite its tendency towards most foreign investors in the most advanced markets,
03:55 such as the US market and others.
03:57 Today, despite the market's grip, there are some selling pressures,
04:01 and in a clear way, on the point of Mr. Mohamed,
04:04 there are certain reasons for this big decline that happened,
04:09 and despite the decline, the market was able to hold on to its profits,
04:13 even though we had reduced the profits at the highest levels of the market to 17,630.
04:20 What are the reasons for the pressure on Hermes in your opinion today?
04:24 Let me say it very clearly, today there is a bit of a change in the financial sector,
04:29 there are new players trying to enter the market,
04:33 now it is Bellton, with its entry in the hands of foreign investors,
04:37 with a very high volume of capital,
04:42 so I expect that today, it is starting to say gradually that it is thinking of entering the small financing sector,
04:48 and it may be clear that it may have a tendency to buy one of the big companies,
04:53 which is doing it in the financial market, and to push a part of the market to finance the small financial sector,
04:59 and maybe we will see more in the consumer finance sector,
05:02 so today, maybe most people are more inclined to the share that has new changes,
05:07 we have seen that in the last period, there were not very big changes in the size of growth,
05:12 in the size of business, without this talk, so this may be a trend,
05:15 today the main players will find some banks and non-financial services,
05:22 and of course, the scene will be exported for a while,
05:25 until the use of its liquidity starts, and what will affect its growth,
05:31 you know that at the level of the financial sector, Bellton is still moving in losses,
05:35 but today we are talking about a very large liquidity volume,
05:37 you can catch some opportunities at the long term,
05:42 you can force them to make a profit, and you can take an unexpected position in the Egyptian market,
05:47 because we repeat the same words, the size of the liquidity, the entry of the 30-day index,
05:52 all of this will make a big difference in the long term,
05:54 which will affect its activity in the Egyptian market.
05:58 Yes, and it is clear that Abu Dhabi is the first to announce the procedures for the crisis of the Egyptian Bellton book,
06:05 this book may have affected the liquidity levels, Mr. Mohamed,
06:12 in your opinion, was it normal for some mistakes to happen in this book,
06:18 as the Abu Dhabi Bank announced, due to its large size,
06:22 and can we see the scenario of increasing capital in this size for other companies in the market?
06:29 If you read the scene a month or two ago,
06:36 you will find that all the operations that happened, from books, from bids, from the Egyptian market,
06:44 all of them have mistakes, all of them have problems, and not small problems that can be solved,
06:50 we are talking about disasters, the biggest book operation that has this disaster,
06:55 it is not a mistake, but it is a disaster,
06:57 today we are talking about the organizational role of the organization responsible for this matter,
07:02 and what the regulatory authorities have done, and what they have taken in these cases,
07:06 today we are talking about the beginning of the Arab region, the exhibition of Shira Bakin,
07:10 today we are closing the Belton, the suspension of the process of trading in one of the days,
07:16 all of this has a big impact on us,
07:18 there is a big shape for all the big transactions, from bids and books,
07:22 and others that have been done in the Egyptian financial market in the last period,
07:25 and we are always exposed to mistakes, problems, and ambiguity about the handling of the regulatory authorities
07:32 and the regulatory authorities responsible for the Egyptian financial market and the Egyptian stock market,
07:35 with these files, and the more we do not admit that there is a mistake or a problem,
07:39 and we try to realize it in the future, the more problems we face,
07:42 today we are talking about the biggest increase in the Belton,
07:47 and we are talking about the existence of foreign investors, and the extraction of foreign investments,
07:50 and other such things, and these mistakes that have no meaning or no justification,
07:54 and their existence on the ground, all of this has an impact,
07:57 and increases the problems of the Egyptian market,
07:59 and brings it back to the back, in front of the markets,
08:03 not only the global markets, but the markets around us,
08:07 which we have been very worried about,
08:10 when we were number one in the markets of the region.
08:13 We thank you, Mr. Mohamed Rida, the CEO of the Solid Capital Group in Egypt,
08:18 you were with us from Cairo, thank you.
08:21 You are welcome.