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00:00 We are talking about these closures with Mr. Mohamed Kamal, a member of the board of the
00:04 elite company for financial consultations.
00:06 Welcome, Mr. Kamal, Mr. Mohamed is with us.
00:11 Let's talk about the situation in the Egyptian market.
00:15 And actually today we were talking about that we have seen the situation in some
00:21 profits, but we end it on the revisions.
00:24 How can we explain this situation for the Egyptian market and the continuation of
00:30 pressure on all indicators today?
00:32 Welcome, ladies and gentlemen.
00:36 Maybe the confusion is still in the Egyptian market since the announcement of the decisions
00:45 by the Central Bank to raise 600 points of interest.
00:50 I think that the prices of assets that were in the past two years have started to
00:59 decline significantly, with the dollar falling in front of the pound in one way or another.
01:05 I think that the market has reached a stage where it is pricing itself in a new way
01:12 today with the official price or the one price after we had two prices, the
01:17 official and the discounted prices.
01:20 So today the market is still pricing itself in a new way or another.
01:25 Maybe the situation today has started to raise some points, but maybe the
01:30 pressure was on the side of the Egyptians or the local institutions that were
01:36 selling in a way or another.
01:38 But maybe the good thing about this is that in return for this, the foreign
01:44 institutions and the Arab institutions were buying, so this gives us more confidence.
01:50 To what extent, Mr. Mohamed?
01:52 Indeed, maybe this is the direction of the Arab and foreign institutions and
01:59 buying.
02:00 It gives us confidence in the market, as you pointed out, there is no buying,
02:06 there is no building centers by these groups, far from the exit of the Egyptian
02:13 market that we are witnessing today.
02:16 As you said, maybe the market is pricing itself with the current currency or
02:24 current dollar prices.
02:26 Maybe the market or the Egyptian market or the companies, the origin of the
02:31 Egyptian companies that are circulating inside or outside the stock market,
02:35 maybe even now it is still very cheap.
02:37 The profit margins or the profit duplication is still at a good level compared
02:43 to many sectors and very active markets.
02:46 So I think that the direct entry of foreign investment into the Egyptian
02:51 stock market will be the secret word for the coming period, especially as I
02:56 said, the last period was the 90% circulation of the Egyptians, whether
03:02 individuals or local institutions.
03:04 So I think the entry of foreign investment, and we have seen the entry of
03:09 foreign investment in religious instruments represented in the treasury, so I
03:14 think we will see a return again to foreign investment and the betting on
03:19 the Egyptian market in the coming period.
03:22 But it was a process of profit margin and the accumulation of profits after the
03:27 strong rise or rally that the market achieved for a very long period.
03:31 So I think that today any relaxation or any reduction in prices in any sector
03:37 I think is a buying opportunity for the medium to long term.
03:42 I think that we are talking about all the companies that can benefit in the
03:48 coming period will be affected in a good way, especially the business results
03:53 that will start to appear in the coming period.
03:56 I think that this will be a positive rise in some sectors and some companies,
04:01 so I think this is a very good opportunity for those who are looking for a
04:05 buying opportunity from the medium to long term.
04:08 I think it is a buying opportunity now in the reduction in the Egyptian market.
04:12 Yes.
04:13 Okay, Mr. Mohamed, today and especially when we saw what the Egyptian
04:17 investor, the Egyptian citizen is watching today, all these news that really
04:21 concern him.
04:22 The Prime Minister's statement today regarding the start of reducing the
04:27 prices of goods, that is, it reaches from 15% to 30% and this is what he pointed
04:32 out, it may be after Eid al-Fitr.
04:34 On the other hand, he said there are procedures to completely release the
04:38 goods today, the sacred and accumulated in the port.
04:41 In your opinion, today, is it the only way out of the inflation circle or
04:46 how far these steps may actually help and specifically, perhaps, reducing
04:52 prices may be a big obstacle for the citizen or the high prices.
04:58 We have seen that we have talked about not only, if we exclude Ramadan,
05:03 because Ramadan has a privacy, but the rest of the months, the prices are still
05:07 high.
05:08 Okay, let's say quickly our explanation to the street man or the Egyptian
05:16 street citizen, what is happening in inflation or what is affecting him greatly.
05:22 Maybe, in fact, there was really an empty circle, which is a severe shortage of
05:26 dollars and the currency is difficult to enter Egypt.
05:29 This may have a great impact on the lack of entering goods and goods and
05:34 food and medical supplies to the Egyptian market.
05:39 So, the price is being priced according to the market, in one way or another, and
05:45 a severe shortage of production entrances to all industries, whether food or
05:51 what to very large sectors.
05:54 This led to an excessively high prices, and perhaps these prices are greatly
06:00 affecting inflation rates.
06:04 Inflation rates have increased in an unprecedented way.
06:07 We have reached very high rates.
06:10 Today, with the availability of the hard currency or the availability of the
06:14 dollar currency, the government has stated that it has started to completely
06:18 separate from the sacred goods in the goods, whether from the thousands or
06:22 food or medical or chemical.
06:25 All this will lead to the reopening of factories and production lines.
06:30 There will be a shortage of products.
06:32 When the product is available, its price will be affordable and will be a
06:37 balanced price.
06:39 Today, we will be able to see inflation begin to be limited in one way or another,
06:43 especially since Egypt is adopting the new economic reform program with the
06:48 International Monetary Fund.
06:50 The government will be able to see the inflation rate in the coming weeks.
06:56 Thank you, Mr. Mohamed Kamal.
06:58 You are a member of the board of directors of the Al-Maliyah Consulting Company.
07:01 Thank you for being with us.