EFSA ap­proves de­ci­sion to re­duce trad­ing time on stocks in EGX

EGX be­gins meet­ings with in­vestor re­la­tions of­fi­cials to im­prove com­mu­ni­ca­tion and dis­clo­sure

The Daily News Egypt - - Business - By Mo­hamed Ayyad

The Egyp­tian Fi­nan­cial Su­per­vi­sory Author­ity (EFSA) has ap­proved a de­ci­sion to re­duce the time of tem­po­rary trad­ing on stocks in the Egyp­tian stock ex­change (EGX) from 30 min­utes to 15 min­utes dur­ing a ses­sion be­cause of the price changes.

A state­ment is­sued by the EGX on Mon­day said that EFSA has pro­vided the man­age­ment with flex­i­bil­ity re­gard­ing in­creas­ing or re­duc­ing the pe­riod be­tween the min­i­mum of 15 min­utes to the max­i­mum of 30 min­utes, de­pend­ing on the mar­ket con­di­tions.

Mo­hamed Farid, the chair­per­son of the EGX, said in a state­ment that study­ing in­ter­na­tional ex­pe­ri­ences of a group of emerg­ing and ad­vanced mar­kets has shown that the time to stop trad­ing dif­fers from one mar­ket to an­other, rang­ing from two min­utes to fif­teen min­utes.

Farid noted that the EGX still adopts the strat­egy of halt­ing trad­ing in cases of price changes in or­der to guar­an­tee sta­bil­ity in the mar­ket even with sud­den price changes.

Mohsen Adel, the vice chair­per­son of the EGX, said that the de­ci­sion to re­duce the time comes within an in­te­grated plan adopted by the man­age­ment to de­velop the trad­ing sys­tem in the mar­ket.The step will be fol­lowed by other steps to in­crease ef­fi­ciency.

In an ef­fort to strengthen the mar­ket, EGX man­age­ment has held a work­shop in the pres­ence of a num­ber of in­vest­ment and re­search man­agers in com­pa­nies and in­sti­tu­tions work­ing in the Egyp­tian mar­ket and in­vestor re­la­tions of­fi­cials of three reg­is­tered com­pa­nies: Alexan­dria Min­eral Oils Co. (AMOC), Abu Qir Fer­til­iz­ers and Chem­i­cals Com­pany, and Tele­com Egypt (TE). This meet­ing came within the frame­work to ac­ti­vate more ef­fi­cient com­mu­ni­ca­tion chan­nels be­tween par­ties of the mar­ket.

The meet­ing wit­nessed of­fi­cials of the in­vestors’ af­fairs ex­plain­ing the data within re­cent dis­clo­sures and look­ing at the sit­u­a­tion based on the re­cent fi­nan­cial cen­tres an­nounced in a way that suits the rules reg­u­lat­ing dis­clo­sures in the EGX.

The meet­ing comes as the first in a series of meet­ings that the EGX plans to host be­tween fi­nan­cial an­a­lysts and in­vestor heads with the in­vestor re­la­tions’ of­fi­cials in the reg­is­tered com­pa­nies. The aim of the meet­ings is to ex­plain the work plans and the data re­cently dis­closed to the EGX man­age­ment. This comes as part of the ef­forts to in­crease the qual­ity of dis­clo­sures made by reg­is­tered com­pa­nies.

For his part, Farid re­vealed that hold­ing such meet­ings aims to cre­ate a more de­vel­oped and ef­fi­cient plan for the Egyp­tian cap­i­tal mar­ket. He pointed out that the up­com­ing pe­riod will wit­ness more at­ten­tion paid to de­vel­op­ing the abil­i­ties of in­vestor re­la­tions of­fi­cials in the reg­is­tered com­pa­nies in co­op­er­a­tion with pro­fes­sional as­so­ci­a­tions to meet the needs of traders within the mar­ket and help them build their in­vest­ment de­ci­sions.

Within the same con­text, the at­ten­dees of the work­shop have stated that they view these kinds of meet­ings in a very pos­i­tive light, es­pe­cially that this cre­ates di­rect com­mu­ni­ca­tion with the reg­is­tered com­pa­nies. They noted that the con­tri­bu­tion of the EGX in or­gan­is­ing such meet­ings helps fi­nan­cial an­a­lysts pre­pare fi­nan­cial re­ports and re­search about the per­for­mance of these com­pa­nies.

EGX be­gins meet­ings with in­vestor re­la­tions of­fi­cials to im­prove com­mu­ni­ca­tion and dis­clo­sure

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