The Egyptian Exchange (EGX) requested from all the listed companies to disclose their current operational and financial status and the extent of the existence of any undisclosed material events that explains the recent moves in stock prices. EGX also demanded them to quickly complete their financial positions until 31/12/2015 so as to reflect the real situation of those companies, in a way to help the investor to form a realistic vision about their performance away from the cases of unexplained panic sweeping markets at some times, which is not based on sound economic basis.
This procedure comes from EGX management to give a clear and objective picture of the listed companies’ actual situation and their updated financial indicators after the global markets decline since the beginning of this year as a result of the decline in oil prices to levels of $ 30 / barrel, coincided with the continued fears from the entry into a new recession globally, which resulted a decline in global markets for about 10 consecutive sessions; and emerging markets recorded the largest decline by up to 13% in just 2 weeks.
Dr. Mohammad Omran, EGX chairman said " We believe in the necessity of non-interference in the markets’ functioning, specially that the financial crisis image has changed than ever before, where it became so frequent over the same year, but at the same time we believe in our role in raising investors’ awareness and to clarify the true picture for them away from the panic that occurs when markets decline, adding that more disclosure and transparency helps to take more accurate decisions.
Omran pointed that investors should learn to control their emotions and not to be affected by panic cases, giving the example of the decline witnessed in the markets during last August and influenced the Egyptian market for several days significantly, but it came back to compensate those losses in the following period of that decline.
Omran ensured that EGX publishes the listed’ shares performance since the beginning of the year up-to-date on a daily basis. The published data include the P/E ratio, the latest profitability, the price during the year, the lowest price during the year, and this is for each company on EGX website.