The Egyptian Exchange (EGX) is in advanced talks with five or six companies that wish to list on the stock market soon, Chairman of the EGX Rami El-Dokany told Asharq Business on September 18th.

The bourse should first build local investors’ trust and boost liquidity and the market value through initial public offerings (IPOs) to be capable of attracting foreign investments, El-Dokany stressed.

The energy, oil, fertilizers, and petrochemicals sectors will lead the market’s activities in the coming period, he added.

The increase in interest rates will be positively reflected on the fixed income instruments, however, it will affect the liquidity in the stock market, El-Dokany noted.

He also pointed out that lack of liquidity is the main challenge for the EGX.

The EGX is working on four factors to increase the market value and boost liquidity, he mentioned.

These factors are encouraging government institutions with high financial solvency to pump higher amounts in the securities market, accelerating the IPO program of private companies in coordination with the government, and launching IPOs promotion campaigns abroad, especially in the GCC to attract new investors, he highlighted.

Moreover, the factors include offering new solutions such as short selling and carbon trading, the EGX’s chairman added.

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