Aggregated News From Investment Management Regulators

The Value of Capital Increase was 40 Billion EGP during 2016


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• Market Capitalization of listed companies was 602 billion EGP by the end of December 2016 with a rise by 40% from the beginning of the year
• EFSA: Total trading was 285 billion pounds during 2016
• Transactions of Arabs and foreigners (net buying) amounted to 7.9 billion pounds during 2016
• The listed certificates of ETFs exceeded 107 million EGP
• Granting license for 19 companies to operate in the capital market within 2016

Sherif Samy – EFSA’s Chairman stated that the number of approvals on issuing capital increase shares in 2016 amounted to 4225 approvals with a value of 86 billion pounds, in which an amount of 40 billion pounds is paid compared with 4055 approvals during the same period of the previous year with a value of 79  billion pounds in which an amount of 46 billion pounds is paid. And so, the value of capital increase witnessed a decline by 14%.

Sherif Samy explained that the market capitalization of listed shares was amounted to 602 billion pounds with a rise by 40%. In addition to this, the main stock index (EGX30) witnessed a rise by 76% when compared the closure of December  2016 to the same period last year.
Sherif Samy noted that the total trading value of listed and delisted shares during 2016 reached about 285 billion pounds, compared with   total trading value of 248 billion pounds during the same period last year. The total value of trading on bonds (government – corporate) was about 78 billion pounds during 2016.

Market capitalization of Nile Stock Exchange (Nilex) stood at 1.43 billion pounds compared to 1 billion pounds in the same period last year with a rise by 39%.
EFSA’s Chairman noted that the listed certificates of ETFs exceeded 107 million EGP by the end of 2016.

 On the other hand, transactions of Arabs and foreigners (net buying) amounted to 7.9 billion pounds during 2016.

The number of licenses granted to companies operating in the field of stock market during 2016 was 19 licenses in the fields of Mutual funds, financial consultations and participating in the establishment of companies. In this respect, the number of licenses granted by EFSA was 822 in capital market, including 206 licenses for participating in the establishment of companies.
The total number of those who passed the tests held by EFSA in 2016 was 246 applicants compared to 317 last year.

 From the beginning of the year, there were 102 complaints under study. Until the end of 2016, EFSA has received 277 complaints against brokerage companies. By the end 2016, the number of existing complaints rises to 379 compared to 418 by the end of 2015 witnessing a fall by 9%. Within 2016, EFSA has examined 283 complaints, and the number of complaints under study was 96. It is worth mentioning that after examining complaints, it is found that most of them are relate to blanket orders, selling through an agent, buying and selling by taking funds from the company exceeding the financial capacity of the client without taking into account margin trading conditions, forced selling to pay off debts and dealing on the account through the Internet.

Filing Criminal Lawsuits:
With regard to filing criminal lawsuits related to violating Capital Market Law and its Executive Regulations, 146 cases were filed and investigated. This included  cases related to allegation of forgery, companies’ manipulation, clients’ manipulation, cases related to financial statements beside other legal violations. Also, it was decided not to take investigation procedures in 40 cases and reconciliation in 111 cases

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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