Experts: Political, Economic Incidents declined Market in May
Published Saturday, 02 June 2012 15:34 |
Mohsen Adel, deputy chairman of EG-Finance Association, commented on the performance of Egypt’s stock market in May, saying that “this period was crucial as the pressures of the interior political states synchronize with the global economic crisis, which deepened its results. So trading volume and achieving stability for the investing system are must.
Performances indicators for the movement of markets’ transaction refer to selling powers were present during trading amid the absence of purchasing powers due to the political state, lack of liquidity and the investors’ cautiousness, Adel said.
He added that the interior political and economic incidents played a role in the decline of the market in May. This needs using tools for reactivating the liquidity as well a number of amendments in trading system for uptaking the current state. He affirmed that the political state’s instability will affect on the economy, consequently it will affect on Egypt’s stock market.
The deputy chairman referred that the cautiousness and fear of traders led to slashing the liquidity in May, as the traders change their financial positions and move between different kinds of shares.
He emphasized on the necessity of making changes to re-pump liquidity in the market during the coming period, and having a normal investing climate in the Egyptian stock market, saving the trading from any risks as well working on marketing the stock on all levels.