The stock exchange of egypt

The demarcation exchange of egyptCoun label Research (Egypt)Country Research The stock exchange of Egypt is rigid in capital of Egypt, Egypt. The Egyptian source telephone exchange (EGX) is one of the oldest stock markets establish in Middle East, who traced its logical argument from the merger of two stock exchanges in Egypt namely, Alexandria tenor Exchange which was established in 1883 and Cairo cable Exchange established in 1903, now known as Egyptian deport Exchange which was erst known as Cairo and Alexandria Stock Exchange (CASE). Both exchanges were very active in 1940s, and twain the exchanges combined were ranked fifth in the world. The vision of Egyptian Stock Exchange is To be a World-Class, Egypt-based exchange which would serve best to its stakeholders in the Middle East and North Africa region. (The Egyptian Exchange, 2010). As each stock exchange has real values and duties, the EGX also has system of values which arrest a vulgar denomination of ethics practiced with every individual whether it is customer, members, issuers, local investment communities, employees and regulators. The Chairman, Mr. Maged Shawky is the head of the Egyptian Stock Exchange. (The Egyptian Exchange, 2010). The exchange has trading session from 1030am to 230 pm on each twenty-four hour periods except Fridays and Saturdays and holidays decl bed in advance by the Exchange. Measure of Activity The main carrying into action indicator or measure of activity of Egyptian Stock Exchange (EGX) is EGX30, which was previously known as CASE30 index. It includes the top 30 companies in terms of liquidity or 30 most active companies in the Egyptian Stock Exchange. The CASE 30 was started with base value of 1000 points on January 2, 1998 and was renamed to EGX 30 on March 1st, 2009. Any company to get listed or to get included in EGX30 must throw off a 15% free float. (The Egyptian Exchange, 2010).Trends in Egyptian Stock Exchange Egypt has a coarse and rich hist ory of financial market. In late 1980s, Egypt had a sophisticated financial structure retentiveness a turn stock exchange in both Alexandria and Cairo. (Wilson, 1995). The Egyptian Stock market has experienced some(prenominal) fundamental changes during major periods such as from 1888-1958, 1959-1971, 1972-1992, and 1992-present. Egyptian stock market was very mature and remarkable at earlier phases of its operation in 1940s both the exchanges were very active. In 1959-1971 phases the stock exchange left its effective operations due to the disturbance of government policies and restrictions. (MohieEldin, Sourial, 2000). After high intervention of government, on that point were several attempts made to improve the working and effectiveness of failing Egypt stock market which go on to stagnate. In 1990s the Egypt stock market went under signifi undersurfacet revival of government liberalization policies and in the end in 1997, major changes were made in Egypt stock market that reformed the stock market and several important steps have been taken by government to modernize the stock exchange. The Egyptian Stock Market has significantly grown by 40% per year since the 1997 reforms and in May, 2001 it reached $36.7 billion. (AMF, 2001). In the current situation of Egypt Stock market, the prices of share fell down on Monday and EGX30 index fell by 3.84 percent with the shutdown of stock market (AFP, 2010). With the losses on two consecutive days the Egyptian Stock Exchange rose on Tuesday with an increase of 2.1 percent in the EGX30 gaining 140 points close to 6659 and the prices of share jumped to 3.5 percent (Egypt News, 2010). Egypt Stock market History The Egyptian Stock exchange is one of the oldest stock exchange which was established in the Middle East. In azoic times Egypt had two stock exchanges namely Alexandria Stock exchange which was established in 1883 and then Cairo Stock exchange in 1903. The Alexandria futures market was one of the oldest market in the world. The offset printing transaction which took place in 1885 was of cotton in Alexandrias caf de lEurope, which was later, named as Mohamed Ali Square. At that time personality was every liaison and timing and reliability was considered to be important if the profits were made on regular basis. There were two respected institutions which were affiliated with the International Cotton Congress. At an informal meeting in the early 1900s, the Monsieur Maurice Cattaui reminded the merchants and talk terms that there should be stocks exchange in Cairo same as of Alexandria. The official headquarters for Cairo stocks exchange was chosen to be the old premise of Ottoman blaspheme. In 1928, the Cairo stocks exchange move into its present premise Sherifien Street. In July 1961, the two stock exchanges merged into Cairo and Alexandria stock exchange which was ranked fifth in the world in terms of market capitalization. (The Egyptian Exchange, 2010). Currency and its The o fficial money of the Egypt is Egyptian Pound (Geneih) usually write as L.E. Earlier Egypt was federal agency of the Ottoman Empire until the french occupation took control in 1798 and later on by British in 1801. In early 1900s the Egypt was made a British protectorate. In 1922, the Egyptian kingdom was declared and on November 14, 1936 Egypt gained its full independence. From 1958-1961, Egypt was untied with Syria, as a part of United Arab Republic. In 1834, the financial system was reformed by Mohammed Ali, telescope 1 Egyptian Piastre/Qrish divisible into 40 Para and equal to 1/100 Pound. On November 14, 1985, the Gold standard was adopted and in 1898, the National Bank of Egypt started bare Bank Notes but they were not legal until 1914. In 1961, Central Bank of Egypt took control and became the ultimate authority of issuing note and they started issuing some small denomination notes (Global Financial Data, 2010). The Egyptian Pound was pegged to the US dollar until 2000 a nd central lingo of Egypt was forced to devalue the Egyptian Pound due to several economic crisis in Egypt. From 2000-2003 the value of Egyptian Pound felt almost to 50 percent. The paper money of Egypt has two faces an English face and an Arabic face and there are different pictures on each faces. The Arabic face has pictures of mosques in Egypt objet dart the English side has Pharaonic scene. The coins are generally made of silver and copper and the coins have pictures of pyramids on one side and value denomination on the other side (Egyptvoyager, 2000).Banking The banking sector of Egypt is one of the well-established part of the economy and the first bank in Egypt was dated back in 1920s and expanded markedly in 1970s by their so called open door policy (AmCham Egypt, 2010). The Central Bank of Egypt is the governance body of the banking sector in Egypt, which comprises of 11 Investment banks, 24 commercial and joint venture banks, 15 branches of foreign banks and 3 specializ ed banks (HSBC, 2001). There has been continuous growth in the annual growth in deposits and assets. By June 2004, the ROE and ROA of Egyptian banks rose to 9.8% and 0.5% respectively. The Egyptian banking sector is improving with time and has gone non-homogeneous reforms in the form of MA, privatization from 1991 up to today. (AmCham Egypt, 2010). Egyptian Currency Exchange to USD The Egyptian Pound is the official silver in Egypt and its symbol is E. The Current conversion of Egyptian Pound to US Dollar. Mathematically, 5.50 Egyptian pound per 1 USD. (Indirect Quote) (CoinMill, 2010) 0.18 USD per 1 Egyptian pound. (Direct Quote) (CoinMill, 2010)Business Practices In the Egyptian telephone circuit culture, the get a line to doing line of credit well is patience. initial finish offs regarding business are very important and they often mean the difference between success and failure. Egyptians are little more concern on the part of trust and know how i.e. why they mostly do th e business that they know or trust, for this reason before practicing any business in Egypt one should have a mediator or a representative who can assist in meeting and acts as go-between (CIA World event Book, 2007). As there is diversity in culture of every nation, there are certain Dos and Donts while practicing or starting or doing a business in Egypt which must be followed. Dos Before doing business, make appointments which should be scheduled either in written or over telephone a week before the appointment. (CIA World Fact Book, 2007).Maintaining an eye contact with the Egyptian counterpart, especially with male colleague is a sign of truth and honesty. (CIA World Fact Book, 2007). endlessly wait for your Egyptian business associate to initiate the greeting at first meeting.Addressing Egyptian counterparts with their ennoble followed by their surname is deeply appreciated with pride. (CIA World Fact Book, 2007).While doing a business speckless appearance is important. Male business visitors should wear suits with neckties on most occasion. DontsRushing or forcing the Egyptian business counterpart while making quick decision can sometimes proves to be ineffective. (CIA World Fact Book, 2007).If, Egyptian business associate stands very close to you and talk then dont get surprised and dont try to get back as this would create a bad impression and may lead to offence. ask detailed question about their family members is considered to be inappropriate, especially family members. (CIA World Fact Book, 2007).Avoid setting up meetings during Ramadan.Starting a business in Egypt While starting a business or a firm in Egypt, one has to go through the legal and bureaucratic hurdles. There is a certain procedure which has to be followed while registering a new company or a firm. (World Bank Group, 2010).The first and foremost step in starting a business is to obtain a legal security department from a well-known authorized bank, which major power cost EGP 300 a nd take up to a day to get the certificate in hand.Next step is to deposit the documents to the department of companies, which are viewed by a lawyer and a detailed invoice of all the fees is issued.Third step is to get the articles of association registered and notarize the companys contract.After the articles are registered, the authority then issues a certificate notifying the establishment of the company this process might take up to 24 hours.Once the company gets establishment certificate, the company completes the tax registration process. cash in ones chips step is to get the employees registered with the National Authority of Social Insurance. (The World Bank Group, 2010)Negotiation Practices Egyptian business people are mostly experienced in doing business and interacting with outsiders. While negotiating with these people one thing should always be kept in mind is that the people here expects the things to be done in their way. (Katz, 2008). There are some negotiating pra ctices while doing a business in Egypt Leveraging relationships is a key element while negotiating in Egypt and Egyptian business people never look for situations like win-win. (Katz, 2008). measure of negotiation is slow and protracted and often negotiation decisions are made in rounds rather than at a table.(Katz, 2008)Information is not shared freely as Egyptians think sharing information can create bargaining advantages. (Katz, 2008)Egyptian businessmen are very smart at using unreal techniques and are often use them.Sources AFP. (2010), retrieved from http//www.google.com/hostednews/afp/article/ALeqM5g4kHjFmtReyhZpAkC_AVAs312NYAAmCham. (2010), American chamber of commerce in Egypt, retrieved from http//www.amcham.org.eg/BSAC/StudiesSeries/Report47.aspAMF. (2001), The database for Arab financial markets, pp. 51-55, AMF Abu DhabiCIA World Fact Book. (2007), retrieved from, http//www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Egypt.pdfCoi n Mill. (2010), retrieved from, http//coinmill.com/EGP_USD.htmlEGP=1The Egyptian Exchange. (2010), retrieved from, http//www.egyptse.com/English/Mission_vision.aspxThe Egyptian Exchange. (2010), retrieved from, http//www.egyptse.com/English/homepage.aspxEgypt News. (2010), retrieved from, http//news.egypt.com/en/201003249948/news/-business/egyptian-stock-exchange-rallies-jumps-2.1-pct.htmlEgypt Voyager. (2000), retrieved from, http//www.egyptvoyager.com/features_money.htmGlobal Financial Data. (2010), retrieved from, http//www.ameinfo.com/financial_markets/Egypt/Currency/Google Images. (2010), retrieved from, www.panoramio.com/photos/original/18078449.jpgHSBC Investment Bank. (2001), Treasury and crown Markets Guide to EgyptKatz, L. (2008), Negotiation International Business- The Negotiators Reference Guide to 50 Countries Around the WorldMohie, E. M, Sourial, M.S. (2000), Institutional Aspects, distributional characteristics and efficiency of Egyptian securities markets recent tre nds in Arab stock markets Recent trends and performances, pp. 1-44, Cairo AVC pressWorld Bank Group. (2010), retrieved from, http//www.doingbusiness.org/ExploreTopics/StartingBusiness/Details.aspx?economyid=61Yahoo Finance. (2010), retrieved from, http//finance.yahoo.com/q/bc?s=CMA.CAt=5yl=onz=mq=lc=4