3 reasons why investing your savings in the stock market is the most appropriate right now.. Get to know them

Egyptians are looking for the most appropriate ways to invest their savings to face the expected rise in inflation following the implementation of a flexible exchange rate system. Citizens are confused between real estate investment, gold, bank certificates or the money market, and the latter is the most appropriate at the present time for 3 reasons:

First float

It is expected that the Egyptian Stock Exchange will witness a strong rise in the coming period with the application of a flexible exchange rate system, in comparison with what the money market achieved during the liberalization of the exchange rate of the pound on November 3, 2016. At that time, the stock exchange achieved its highest level ever, with the continued positive impact of the float decision on the stock market. Finance.

During a year of liberalizing the exchange rate on November 3, 2016, the main index of the stock exchange achieved an increase of 68%, with a trading value of 250.5 billion pounds, and the market value on the stock exchange gained 363 billion pounds, from 417 billion pounds to 780 billion pounds.

Government Offering Program

It is expected that with the activity of the Egyptian Stock Exchange, the government will resume the government offering program, and start offering some state-owned shares in companies listed on the Egyptian Stock Exchange, and a project to offer 7 hotels owned by the Ministry of Public Business Sector, in order to achieve the objectives of the state ownership policy document, and enhance the role of the private sector in next period.

The establishment of the Sovereign Fund of Egypt to manage the offering of some state-owned companies on the Egyptian Stock Exchange, or to a strategic investor, this time contributes to accelerating the pace of the offering. And targeting strategic investors, which helps in measuring the extent of institutional interest before moving to the IPO stage.

Attractive Prices

As a result of the emerging Corona virus pandemic, and the global inflation that followed, leading to the crisis of the Russian-Ukrainian war, stock prices fell to attractive levels that make them attractive to Arab and foreign investors in return for owning huge assets valued at low prices, as evidenced by the fact that the stock exchange received several offers for acquisition during the last period.

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