The Egyptian Stock Exchange awaits investment flow after the interest rates have been lowered

The Egyptian Stock Exchange awaits a wave of activity in the coming weeks, after the central bank has reduced the interest rate by 2.25%, in a move that experts are seen as the beginning of a new cash facilitation cycle, which can return the liquidity in the money market after years of high debt tools. Egyptian stock exchange head Ahmed Al -sheikh expects Al -Sharq to encourage the reduction of interest investors to go to the stock exchange in an effort to achieve a higher return compared to the bank. He added that the high interest rates “lead to a decline in demand for high risk list instruments, and the approach of liquidity to high -rendering certificates, which” expect “the increase in the amount of investment on the stock exchange and the recovery of its activity after the interest has been reduced. The most important stock index “EGX30” closed by about 0.82% last week at the end of the trading, with basic support of the emergence of the “EFG Holding” share by about 6.29%, according to the Egyptian Stock Exchange data. While the market performance was positive during the first quarter of this year, as the main index rose by 7%. Mustafa El -shaniti, CEO of “Zella Capital”, is an upcoming liquidity, and sees that the decision will be “very positive” on the Egyptian stock exchange, and expect the market performance to improve during the upcoming period, with the support of liquidity that will move from fixed income instruments to stocks. He explained to Al -Sharq that reducing interest rates will lower the financing costs on companies, which will reflect positively on the results of their business, and encourage the implementation of new market proposals, especially with the expectation of more discounts in interest rates during the third and fourth quarter of this year. Egyptian Prime Minister Mustafa Madbuly announced last December that his country intended to start at least ten companies during the year 2025, and among the businesses that offered 4 an army possession. New proposals and on the way to growth shares Amr Al -Avenue, Head of Stock Strategies at Thunder Stock Trading Company, says raising the trading volumes within the market due to low interest rates will lead to investors’ tendency to growth stocks and long -term distributions, and new proposals with equity values. In his conversation with Al -Sharq, Al -Aldi added that the most advantageous shares of the decision are the debt assessment companies in the pound, or that it is dependent on the financing of the short term, while the impact of the decision on bank shares will be uneven, depending on the structure of loan dates within each bank. Haitham Fahmy, head of the research department at the “Prime Stock Trading Company”, expected his part to lead the high index “EGX30” to 31326 points, and then exceed 32 thousand points, which are previous resistance levels. He explained that the stock exchange will benefit from partial liquidity exit from Treasury accounts, bonds and bank deposits, and to drop it into the market, pointing out that the non -banking financial services sector will be one of the largest beneficiaries, in exchange for a possible impact on the banking sector. But he noted that the effect would differ according to the corporate capital structure; Extension companies with high dependence on financing will clearly benefit, while companies with conservative capital structures will not see fundamental changes. A careful start and risk of Sarah Saadeh’s list, the major macro economic analyst in the ‘CI Capital’, reduced the interest by 2.25% official announcement of the central bank over the beginning of the facilitation course, but it comes carefully and balanced due to economic fluctuations locally and worldwide. Although the reduction is not sufficient to cause a major shift in the short term, happiness sees it as a ‘accurate and peaceful’, and emphasizes that ‘the effect will be tangible on corporate assessments, and encourage it to encourage production and borrowing.’ But Ibrahim Al -Nimr, head of the technical analysis division at the “Al -Naem Securities Trading Company”, believes that the reduction for the first time “is not sufficient to make a strong impact on the stock exchange, and if there are increases, it can be a quick response, especially because the economic fluctuations and challenges are still the owner of the performance of the market.” He added in an interview with “Al -Sharq” that the reduction for once is not sufficient to emphasize the beginning of the cash facilitation course in Egypt by the Central Bank of Egypt, especially in light of the escalation of the increasing frequency of inflationary pressure. Critical facilitation is continued all indicators indicate that the money market is a shift in light of changing monetary policy, with investors expecting more reduction in interest rates, increasing the appetite for risk and increasing the chances of new proposals. But the biggest challenge is the sustainability of economic stability and the size of the expected liquidity. Ahmed Abu Hussein, chairman of the Cairo Capital Capital Company, believes that the central bank will continue the policy of monetary facilitation, supported by the fall in inflation from 23.2% in January to 12.8% in February, before rising slightly to 13.6% in March. He pointed out that real interest rates amounted to 14%, which is the highest level in ten years, which provides the central space for more discounts, and expects the increase in fuel prices to not affect monetary policy trends, nor on the stability of the local currency. Various consequences between the sectors, Ahmed Abdel Nabi, head of the research sector at the “Mubasher Securities Trading Company”, believes that the impact of the new monetary policy would be contrary to the listed businesses, which emphasize that businesses that have high net “cash” may have negative pressure on the returns. On the other hand, companies with a net debt are expected to benefit from the decline in financing costs, which can increase their profits, suggesting that there are about 56 businesses that will be directly affected; Among them are 19 companies that will have negative consequences, especially in the sectors of financial services, industries and basic commodities, while the positive impact will include 31 businesses, especially in real estate and healthcare. As for Youssef Al -Far, the managing director of the ‘Al -Naem Holding Company for Investments’, he believes that the last reduction paved the way for low interest rates to below 20%, which is a favorable environment to reach the record levels of the stock exchange. The real estate sector will be the largest beneficiary due to the low financing costs, according to the mouse, which expects the ‘EGX30’ index to rise from 2025 to 36 thousand points in the first half, with the support of political stability and the flow of foreign investment.