Direct – Heba Al-Kurdi: In light of the declines in local and global financial markets due to fears of the spread of Corona virus, a number of companies listed on the Egyptian Stock Exchange went to buy treasury shares to support their shares in the face of those sharp declines in financial markets.
According to a survey conducted by “Mubasher” on the companies that announced their desire to buy treasury shares, 5 companies announced offers to buy about 236 million treasury shares of their shares listed on the Egyptian Stock Exchange, after sharp declines in stock indexes.
Those decisions came with the support of the Authority’s decision to agree to amend some provisions of Article 51 of the rules for listing and writing off securities in the stock exchange dealing with treasury shares, including the possibility of implementation on the day of the notification without observing the period of advance notification that was scheduled at least three working days before the proposed date Actionable.
The supervision indicated that the decision comes in the context of recent events and developments that have occurred in the global financial markets and the sharp downturn witnessed by Arab and foreign stock exchanges, and in the interest of the General Authority for Financial Supervision to protect the Egyptian financial markets and protect the rights of dealers in them.
The Egyptian Stock Exchange witnessed severe losses in last Sunday’s session, losing about 32 billion pounds of market capital.
For his part, Michael Mamdouh Naguib, director of customer relations at H Dubai Securities Brokerage said that the decision has a positive impact and a good opportunity to reduce the losses of a number of investors.
Najib pointed out that despite the positive decision, it is only a temporary effect, and it is not sufficient to protect the decline in shares, pointing out that not all companies are able to purchase stock stocks.
He added that buying shares requires a number of other decisions with him, at the top of which is to abolish the stamp tax on trades and reduce gas prices to factories.
At the beginning of this week, the board of directors of Palm Hills Development Company decided to purchase treasury shares with a maximum of 62.35 million shares, representing approximately 2 percent of the total shares of the company.
The company indicated that the treasury shares will be purchased through the open market, provided that implementation takes place from a session on March 2 to April 2 or until the full amount is executed, at the price of the security during trading sessions.
The company attributed the decision to the current events and the decline in the Egyptian Stock Exchange index, and in light of the exceptional procedures of companies whose securities are listed on the Egyptian Stock Exchange wishing to purchase treasury shares.
Ghabbour Auto decided to purchase treasury shares with a maximum of 10 million shares, representing 0.914 percent of the total shares of the company.
The Arab Investment Holding Company is the largest company in terms of the number of treasury shares to be purchased at 134.9 million shares from the open market.
Because of the declines, the Egyptian Kuwaiti Holding decided to purchase treasury shares from the open market, within the limits of 20 million dollars, by purchasing about 17.5 million shares.
Finally, Orascom Development Egypt announced that treasury shares will be purchased with a maximum of 11.3 million shares, equivalent to 1% of the total shares of the company.
At the end of trading today, the main index of the Stock Exchange of Egypt fell by 1.91 percent, losing 237 points to reach the level of 12182 points.
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