The volume of transactions of brokerage firms declined during October, coinciding with the decline in market volumes during the month, by about EGP 10bn from September, despite the positive incentives witnessed, such as the decline in local interest rates and gasoline prices, as well as announcing discounted energy prices to factories.
With a slight difference, Arqaam Securities Brokerage came in the first place among brokerage companies in October with a substantial trading value that amounted to EGP 4bn, accounting for 11.5% of the total volume of market transactions during the month. This was supported by the implementation of EGP 2.4bn transactions, where the company implemented a deal for the East Mediterranean Gas Company.
Sherif Hashmat, CEO of Arqaam Securities Brokerage, said the advancement of the company is due to expanding its base of local and foreign institutions, as well as solvent individuals, which reflects the confidence of customers in the company.
Heshmat added that the company seeks to capture market shares to maintain the lead by attracting a larger segment of institutions, pointing out that Arqaam is negotiating bigger deals in the coming period.
He noted that his company is always ready to get any new license offered by the Financial Regulatory Authority.
The total value traded recorded EGP 44.2bn, while the total volume traded reached 5.5m securities executed over 471,000 transactions last month.
EFG Hermes Securities Brokerage came second by EGP 3.5bn, representing a 10.1% market share, despite taking the 28th rank in the deals market, but the transactions for individuals helped the company advance to second place, where it implemented individual transactions of EGP 2.8bn last month.
Its sister company, Financial Brokerage Group, came in third place after executing EGP 3bn transactions of the total market turnover in the past month, with 8.4% of total market transactions, where the financial group fell in the deals market to the sixth spot, unlike its habit of controlling the market, which led to its decline to the third rank.
The Commercial International Brokerage Company (CIBC) fell two positions from September to fourth place with EGP 2.1bn and a 6.1% market share.
Beltone Securities Brokerage advanced one position to the fifth place after executing EGP 1.9bn transactions of the total market turnover in the past month, with 5.3% of total market transactions.
Pioneers Securities ranked sixth with a total turnover of EGP 1.5bn, representing 4.2% of the market, while Pharos Securities fell two positions from September to seventh place, with a 3.9% market share through transactions of EGP 1.4bn.
Aamer Abdulkader, director of Brokerage Sector Development at Pioneers Securities, said the company has finalised all procedures to obtain a short selling license from the Financial Regulatory Authority (FRA), pending the authority’s final approval.
He added that the company seeks to acquire a larger market share by focusing on institutions and individuals in a way to expand the transaction market in the coming period, and aims to open a new branch by the end of June 2020 in the Fifth Settlement, New Cairo.
Abdulkader said that Pioneers also seeks to join the top five in the main market during the last quarter of the year, expecting Pioneers to finish this year in the fifth place.
In addition, the company is also studying expansion after its recent branch expansion, as the company intends to open a new branch in the New Administrative Capital as the first brokerage company there.
Moreover, Arabeya Online ranked eighth by EGP 1.06bn worth transactions, holding 3% market share.
Moataz Ashmawy, board member and managing director of Arabeya Online, said that the company aims to maintain its position until the end of the year, and seeks to advance two more positions during the first quarter of the next year.
Ashmawy added that the company aims to open a new branch in 2020 in Minya governorate, totalling 15 branches across the country.
He pointed out that the company is developing its infrastructure to expand the dealings of individuals and institutions, pointing out that the company seeks to obtain a bond issuer license once the market performance improves, and is also waiting for the launch of futures contracts to obtain them.
Sigma Capital Securities Brokerage ranked ninth with total operations of EGP 1.02bn, representing 2.9% of the market.
Mohamed Hammam, managing director of Sigma Securities Brokerage, said that the company seeks to expand its base of Arab customers, in addition to the expansion of the volume of retail transactions, in addition to attracting a larger market share of the deals market.
He pointed out that the volume of liquidity in the market is very weak, and needs a strong catalyst such as government offerings to improve its performance, so that brokerage companies can attract new customers.
Meanwhile, Naeem Brokerage was the tenth largest company with operations valued at EGP 864m, equivalent to 2.5% of the market.
Meanwhile, EGX30 index closed at 14,558.02 points, recording an increase of 2.11%. EGX70 index posted a 3.63% gain concluding the period at 539.27 points, while S&P index rose by 0.36% and concluded the period at 2,125.3 points.
EGX30 index capped rose by 1.23% and concluded at 17,530.72 points, while EGX100 index rose by 3.14% and concluded the period at 1,436.86 points.
Total market capitalisation reached EGP 727.7bn at the end of the period, representing an increase of 1.72% over the last month.
For the month before last, the total value traded recorded EGP 54.8bn, while the total volume traded reached 4.9m securities executed over 532,000 transactions.
Stocks trading accounted for 35.42% of the total value traded of the main market, while the remaining 64.58% were captured by bonds over the month.
Egyptians represented 73.8% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 18.1%, while Arabs had 8.1%. Foreigners were net sellers with EGP 196.2m, and Arabs were net buyers with EGP 40.6m, after excluding deals in listed stocks.
Since the beginning of the year, Egyptians represented 67.0% of the value traded in listed stocks after excluding deals. Foreigners accounted for 24.0%, while Arabs captured 9.0%. Foreigners were net sellers by EGP 1.979bn, and Arabs were net sellers by EGP 520.5m, after excluding deals in listed stocks during this year since starting.