The Egyptian Stock Exchange achieved a negative performance during the month of March, as the market capitalization of the Egyptian Stock Exchange declined by 134.1 billion pounds, and the main index of the Egyptian Stock Exchange “EGX 30” decreased by 26.25% to close at the level of 9593.94 points, and this performance came after the panic that affected the financial markets Around the world as a result of the outbreak of the Corona virus, however, the most prominent witnessed by the Stock Exchange during the past month is President Abdel Fattah El-Sisi’s announcement that he will direct an amount of 20 billion pounds to support the stock market from the Central Bank.
1- A message of reassurance to all dealers in the money market with the interest of the state, foremost of which is the political leadership of the Stock Exchange.
2- Contributing to reducing the pressure of margin call sales.
3- Ensuring that the prices of many stocks are much lower than their fair values.
4- Create purchase orders in the market instead of the panic that dominated most of the dealers.
5- Giving the opportunity to the foreign investor who wants to leave, which gives a positive message to foreigners.
He said, “Mortada”, the current time is appropriate to form purchasing centers in the medium and long term gradually, but no one can predict the market bottom at all.
And Mortada identified the best way to spend the stock exchange support amount by pumping these funds in a supportive way to the market, such as the role of a market maker and a hunter for opportunities in crises, not as a buyer contributing to the rise of the market because the markets are moving in their direction and there are no purchasing forces that can change the direction of the market continuously. Also, to give investors the opportunity to form purchasing positions, especially after the arrival of many stocks at prices that do not fully reflect the size and profits of companies, as well as many companies have cash balances that approximate the market value currently after the decline in prices during the past weeks.