“Direct Capital” plans to list its shares on the stock exchange by 2025

“Mubasher Capital Holding” intends to offer a portion of its shares on the Egyptian Stock Exchange in 2025 as one of the solutions the company is implementing to maximize revenue and increase profitability.

Hany Hamdy, the CEO of Mubasher Capital, stated that the company is adopting expansion plans across all its investment arms to maximize its revenues and profits.

Hamdy added in an interview with “Al-Borsa” that the plan includes doubling the number of branches of Mubasher Capital for securities trading from 14 branches to 24 or 30 branches within the next year. These branches will be distributed across several governorates, including two branches in Fifth Settlement and then Sheikh Zayed, in addition to a branch in Heliopolis, which is nearly ready and will start operating soon. The company also plans to establish a new branch in the New Alamein City.

The company currently owns about 14 branches nationwide, distributed in Alexandria, Mansoura, Tanta, Assiut, Damietta, Menoufia, Hurghada, Haram, and two branches in Minya, in addition to the main branch in Nasr City.

The company achieved trading volumes amounting to 9.9 billion Egyptian pounds in November of the past year, divided into 4 billion financial instruments, capturing a market share of 4.5%. This positioned the company in the fifth place in the ranking of financial brokerage firms in terms of market trading.

The spokesperson continued to mention that the company’s prominent deals outside the stock market are in the real estate and petrochemical sectors. He anticipates the execution of most of these deals at the beginning of the first quarter of 2024.

Additionally, the company obtained a license for settling treasury bills and bonds on the new stock exchange system. It has also applied for the ATP license for trading bonds and securities, and is working on obtaining a license for fixed-income instruments. Consequently, the company is expected to have settlement, execution, and marketing licenses by the first quarter of 2024.

considering that in the Egyptian market, the market share for individuals is typically larger than that for institutions. He noted that “Mubasher,” at the same time, deals with all types of institutions and plans to target more institutions in the upcoming period.

He added that the company’s plan targets increasing its market share by a rate of up to 5% in the coming period compared to the rates achieved during the current year.

The company secured the third position in the ranking of financial brokerage firms in November of the previous year in terms of individual trading, with a trading value of 8.8 billion Egyptian pounds, divided into 3.7 billion financial instruments, and a market share of 6.3%.

He pointed out that the company has signed cooperation agreements with both Cairo University and Helwan University, in addition to signing a cooperation protocol with the Ministry of Youth to attract the largest and most important segment in the market, the youth. This move is considered crucial to deepening the market.

Hamdy expects the main index of the Egyptian Stock Exchange to continue trading sideways until the end of the current year. He notes that the recent selling pressure in the market is a natural part of profit-taking activities and improving the position of investment funds after the upward trend. The EGX30 index started the year at the level of 14,000 points, continued to rise, reaching 25,000 points. Investors were able to achieve substantial gains, surpassing 100% on some stocks in a short period.

He explained that the Egyptian Stock Exchange has proven its ability to generate larger profits compared to any other investment method, especially savings certificates offered by banks with interest rates of 25% or 20%. Despite some investors’ lack of familiarity with trading or the time to follow their stocks on the stock exchange, many are directed towards purchasing bonds.

He pointed out the existence of low-risk investment funds compared to stock transactions, providing a learning opportunity for novice investors on how to manage investments. Additionally, he highlighted treasury bills that mature in the short term as an option.

He added that it has become clear that the state is inclined to adjust the exchange rate of the Egyptian pound against the US dollar once again, due to the price differentials between the parallel market rate and the official rate at the central bank. He pointed out that the key to the success of re-adjusting the pound’s exchange rate lies in providing foreign currency during the adjustment, so that price differentials do not reappear.

He explained that it is incumbent upon the government to reduce interest rates during the second half of the coming year, in addition to providing foreign currency, to begin the process of correcting the economic conditions that the Egyptian market has gone through. He noted that the recent increase in the US Federal Reserve interest rates did not impact the Egyptian market, although it is natural for the stock market to be affected by any changes in the US dollar and interest rates.

It is worth mentioning that the central bank has raised interest rates since March 2022, with the rates currently standing at approximately 11% for deposits, 20.25% for lending, and 19.75% for the central bank’s main rate.

He added that it has become clear that the state is inclined to adjust the exchange rate of the Egyptian pound against the US dollar once again, due to the price differentials between the parallel market rate and the official rate at the central bank. He pointed out that the key to the success of re-adjusting the pound’s exchange rate lies in providing foreign currency during the adjustment, so that price differentials do not reappear.

He explained that it is incumbent upon the government to reduce interest rates during the second half of the coming year, in addition to providing foreign currency, to begin the process of correcting the economic conditions that the Egyptian market has gone through. He noted that the recent increase in the US Federal Reserve interest rates did not impact the Egyptian market, although it is natural for the stock market to be affected by any changes in the US dollar and interest rates.

It is worth mentioning that the central bank has raised interest rates since March 2022, with the rates currently standing at approximately 11% for deposits, 20.25% for lending, and 19.75% for the central bank’s main rate.